Operators are continuing to cut wireless prices in order to try to court new customers to capture a larger share of fourth-quarter subscriber additions. The fourth quarter historically has been the busiest time of year for the industry.
After reporting it lost customers in the third quarter, Cingular Wireless L.L.C. last week introduced a limited-time pricing promotion giving customers 1,000 anytime calling minutes for $40 per month. The rate plan, which the carrier said it would offer only until Dec. 31, mirrors offerings from both T-Mobile USA Inc. and AT&T Wireless Services Inc.
Similar to the rate plans from its GSM competitors, Cingular’s promotional rate plan does not include any additional night and weekend minutes, but the carrier does offer its Rollover service, allowing customers to keep their unused minutes for up to 12 months.
Analysts expect Cingular’s price cut, along with similar priced offerings from its competitors, could draw a lot of interest from consumers.
“With a yield of [4 cents per minute] during peak times, we expect this plan, as well as T-Mobile’s and [AT&T Wireless’] comparable plans, to capture a significant share of [fourth-quarter] gross additions,” said RBC Capital Markets analyst Jonathan Atkin.
Prior to the latest price cut, Cingular’s offering in the $40 price range included between 350 and 500 anytime minutes depending on which network the customer was using, plus an additional 3,000 night and weekend minutes. Customers were not offered 1,000 anytime minutes until they stepped up to a $70 or higher rate plan.
Verizon Wireless Inc. partially matched the increasingly competitive anytime-rate offering with a 1,000 anytime minutes for $40 per month on its regional calling plans. Those plans include long-distance calls placed from the customer’s home calling region, but charge 69 cents per minute for roaming calls. Verizon Wireless’ current nationwide $40 rate plan includes 400 anytime minutes.
RBC also reported that Verizon Wireless and Sprint PCS have introduced larger rebates on a number of their higher-end wireless handsets in time for the holiday season.
In response to what it called customer feedback, T-Mobile introduced a second rate-plan option for its Sidekick consumer-oriented personal digital assistant device. The new plan provides 500 anytime voice minutes, unlimited night and weekend voice minutes, unlimited data transmission and 1,000 text messages for $60 per month.
The new plan, dubbed the Sidekick Plus Plan, will be offered alongside the carrier’s original Sidekick plan, which provides 200 anytime voice minutes, 1,000 weekend voice minutes, unlimited data transmission and 1,000 text messages for $40 per month. Both offers change from unlimited data transmission to 15 megabytes with $3.50 per MB overage after the first year.
T-Mobile’s Sidekick plans should compare favorably with data/voice offerings from Sprint PCS, which offers 300 anytime minutes, unlimited night and weekend voice minutes and unlimited data transmission for $40 per month or 500 anytime minutes along with unlimited night and weekend voice minutes and data transmission for $55 per month.
