Unlimited Data Offers Mean New Carrier Price War

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Unlimited Data Offers Mean New Carrier Price War
According to BrandIndex, since Christmas, Verizon’s value perception has dropped to a point not seen in at least six years while AT&T has seen a steady decline
during the same time frame, with the latter falling behind the other three carriers in terms of the value consumers expect to get from their telecom providers.
This constant back and forth, with the unlimited data plans is the icing on the cake
and is leading to real concerns the wireless carriers will slash prices to grab market share from each other which could hurt gross margins and increase their costs to acquire customers.
This isn’t the first time the wireless carriers have been embroiled in a price war designed to get new customers at all costs.
AT&T and Verizon had balked at offering customers unlimited data plans for years because of costs,
but this week they both caved to pressure from T-Mobile and Sprint, rolling out their own take on unlimited data.
Meanwhile, T-Mobile announced it added 933,000 postpaid customers in the fourth quarter
and Sprint’s wireless subscription additions of 368,000 were more than Wall Street expected and its highest increase in four years.
T-Mobile US Inc. (TMUS), Sprint Corporation (S), Verizon Communications Inc. (VZ) and AT&T Inc. (T) are bringing more than unlimited data plans back.
According to a recent report from BrandIndex, a firm
that measures the perceptions consumers have about different brands, there has been a serious decline in the value consumers perceive they derive from both AT&T and Verizon.
But it’s not only unlimited plans that the four wireless carriers are one-upping each other on.
Their moves may spark the next price war in the mobile wireless market which bodes well for consumers but is bad business for the telecom players.


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