Verizon Wireless and AT&T – the two largest mobile operators in the US – both cut their mobile tariffs late last week amid fears that an escalating price war in the country could affect operator revenue.
According to a Reuters report, market-leader Verizon Wireless has replaced its US$99.99 voice plan with a US$69.99 plan that includes unlimited phone calls and a US$89.99 plan that also includes text messages. AT&T responded with an offer of unlimited voice and data for US$99.99, equating to a roughly US$30 price reduction. The reductions bring their respective tariffs more in line with third- and fourth-placed rivals, Sprint and T-Mobile USA - which both introduced lower-cost plans last year - and prepaid regional specialists such as Sprint’s Boost Mobile and MetroPCS, which are credited with starting the US price war. However, Verizon also said it was ending a data service plan for US$19.99 a month for 75 megabytes, replacing it with a US$9.99 per month plan for 25 megabytes, in an apparent move to curb high data usage on its networks.
Reuters reports that shares in AT&T, and Verizon Wireless owners Verizon Communications and Vodafone, ended lower on Friday in response to the reductions. Verizon's CFO John Killian told analysts on a conference call that voice revenues would initially fall but that the changes would eventually help cut customer churn. "Any time a market-leader changes prices it causes concern, but they're really cutting prices at the high end of voice. That's a small portion of the market," said Pacific Crest Securities analyst Steve Clement, adding that Verizon’s fees still remain much higher than its low-cost rivals.
source: GSMA MBB
No comments:
Post a Comment