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Cingular challenges T-Mobile with $40 per month calling plan

ATLANTA—Cingular Wireless L.L.C. rolled out a new pricing plan, without its signature Rollover feature, in a move to counter a similar plan offered by T-Mobile USA Inc.

Cingular’s Nation 1000 plan for $40 per month includes nationwide long distance and roaming, but does not offer unlimited night and weekend calling or unlimited mobile-to-mobile, although the latter option can be added for an extra $10 per month. The plan is only available in select markets.

Cingular’s Nation 1000 plan is comparable to T-Mobile USA’s $40 Get More 1000 and $50 Get More 1000 Plus plans. The Get More 1000 plan offers 1,000 anytime minutes but not unlimited night and weekend calling; the $50 plan offers the same number of anytime minutes plus unlimited night and weekend calling. T-Mobile USA bills additional minutes at 40 cents, while Cingular charges 45 cents.

“The fact that the new plan is not a national offering suggests that Cingular is surgically meeting the T-Mobile threat,” concluded William Ho, senior wireless services analyst for Current Analysis. Current Analysis said it identified 26 markets where the plan is available out of the 43 markets it tracks. According to checks of Cingular’s Web site, the plan is available in such markets as Portland, Ore.; New York; Denver; and Chicago.

Ho noted that the plan is “significantly more aggressive than any $40 price point plan currently offered by Verizon Wireless or Sprint [Nextel Corp.].”

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