so a few years ago vzw started unlimited voice at $99.99. the next day, att had the same plan. history repeated itself last week as vzw slashed it's unlimited talk price by $30 and att followed suit the very next day.
now- a multi billion dollar corporation has to do a lot of thinking before it drastically cuts its pricing. forecasting, regression models, excel sheets galore. suffice it to say, vzw didn't just decide it was good marketing...lots of forethought went into it...
so how is it possible that att can alter the plans so drastically with only 24 hours of lead time?? how come it takes vzw weeks, if not months, to decide that these plans are viable and suit their revenue models, but it takes att a day?
can anyone offer some re...
(continues)
...
Both are controlled by the Public Utilities Commission-as far as pricing is concerned. No big mystery.
...
but how is a $30 cut in these plans good for one company and just as good for another without any forethought?
...
They were getting over in the first place. Voice is cheap. Verizon sells a bucket to Page Plus and they are able to offer Unlimited Voice and Text for $39.99 The carriers are selling air. It is very profitable.
...
That's kinda funny "the carriers are selling air"
It really suck that in order to get unlimited voice/txt/data with ATT I would have to pay $120/mo, and that's only for 1 line.
These days some of us (me included) have to choose between the ALL-important wireless bill or cable tv.
I choose my ALL-important wireless bill!
...
aleeFeb 1, 2010, 4:27 PM
Its 120 for two lines and 50 for each line after.
...
I did specify unlimited voice/txt/data on 1 line, not just voice.
...
1) they still make a profit with those plans, but just less of a profit.
2) Those lower prices for unlimited talking... are offset by putting required data on alot more phones.
- %10 of users pay less now... but 60% of users are now required to pay more = more money (made up percentages).
3) Lower unlimited prices means that MORE people will do a minor upgrade to ulimited.
- If you lose that $30 that 10% of your customers use... but another 20% of people decide to upgrade cheaper plans to unlimited... you're making the same amount of money.
4) lastly... if you don't offer matching price points customers go to the cheaper carrier. Not exactly rocket science. So even if AT&T never heard of these numbers beforehand, it wouldn't take ...
(continues)
...
Exactly! Does anyone believe AT&T would have offered A List or ANY Unlimited plan if Verizon had not? Alltel had My Circle for years and T-Mobile almost as long and AT&T didn't blink. When Verizon does something AT&T has to take notice. These guys are one another's competition. AT&T is a created Verizon mirror. Except they have the iphone. If Verizon adopts a feature or plan that makes sense...AT&T is sure to copy it. The Thursday before this unlimited $69.99 was leaked on BGR someone was here on phonescoop bragging about Verizon's game changer. I told him whatever it is give AT&T twenty-four hours and they will adopt it. He became irate with me. It was true though.
...
epikJan 28, 2010, 10:49 PM
Huh?
...
unfortunately, price fixing is what it seems. what a shame.
...
You are looking at this from a conspiracy point of view instead of a lack of creativity point of view.
#1, if you think AT&T doesn't know a few days in advance so they can immediately "launch" the same plans you are not reading the same forums in which you post. Leaks are all over the place which makes a surprise launch virually unheard of these days.
Second, anything Verizon Wireless does AT&T must follow of risk losing customers. When the biggest kid on the block decides to lower prices you better do the same when you have nothing else to offer to keep up your margins.
...
aleeFeb 1, 2010, 4:29 PM
"Nothing else to offer to keep up margins"? HA!
...
I thought the only ones controlled by the PUC is water & power? Cell phones are considered a luxury, not by me though, I consider a cell phone a VITAL NEED!!!
...
It's called competition. In February 08 as this month VZW thought it had a game changer. In Feb 08 the other carriers simply did it. It is as simple as that. There was a leak and they decided that they would not give Verizon that advantage. AT&T matched the Unlimited ($99.99) offering and T-Mobile actually beat it by $10. Sprint said that they would not but the next week...Simply Everything. Believe it or not, when people want to get things done...they can.
...
The question you should be asking is why would anyone ever pay $99.99 (or even $69.99) with Verizon? I could get what amounts to Unlimited on VZW for $59.99
...
Because "If Verizon can do it, so can we." ...
...
No cahoots here. Just good ol fashioned marketing. Verizon usually seems to lead the way with these types of price changes. Hopefully they revise data and texting rates next!
...