January 17, 2010 in City

Verizon lowers voice plan prices

Barbara Ortutay Associated Press
 

NEW YORK — Verizon Wireless is cutting the price of unlimited call plans, but the largest cell phone carrier in the U.S. is requiring more of its customers to buy the data plans used to access the Internet and check e-mail on high-end mobile devices.

The latest move in a long-running pricing competition between the nation’s wireless carriers shows that the industry is mature and competitive, which leads to lower prices for customers, said Walter Piecyk, an analyst with Pali Research.

But it also shows that data use is becoming an increasingly important service for mobile carriers as they look to new sources of revenue from customers dependent on mobile access to e-mail and the Web.

Verizon Wireless said Friday it will now charge $70 a month for an unlimited monthly calling plan. Such a plan previously cost $100.

A plan for unlimited calls and text messages will cost $90 starting Monday. It previously cost $120. The new plans won’t affect existing customers, Verizon said, unless they decide to move to the new plans.

But Verizon is also making more customers sign up for data plans, which are used by people with powerful mobile gadgets where phone calls are just one among many features.

Customers who buy any 3G, or third-generation, multimedia phones will now have to sign up for a $10 per month data package, which gives them 25 megabytes a month. Such multimedia phones are not the high-end smart phones like the Droid, Verizon said, but phones such as the LG enV series, offering HTML browsing, music and other features like keypads.

Jefferies analyst Jonathan Schildkraut estimates this means about 3 million to 3.5 million customers who will now be forced into spending at least $10 a month on data.

The high-end 3G smart phones like the Droid have a requirement of a $30 per month unlimited data plan. The company is also discontinuing a plan that cost $20 a month for 75 megabytes.

Piecyk said the changes show Verizon is trying to focus more on data.

“They are trying to get customers focused on valuing data by increasing how much data costs in comparison with voice,” he said.

© Copyright 2010 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.


Thoughts and opinions on this story? Click here to comment >>

Get stories like this in a free daily email