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The Ultimate Cell Phone Plans Comparison

On Friday, Verizon Wireless announced pricing plan restructuring that would reduce the cost of voice usage.  AT&T Wireless quickly followed suit and unveiled their updated cell phone plans as well.  Today is the day that those changes go into effect.

Shrinkage Is Good Tony Adam

Context & Ripple Effects

Verizon positioned its January 15 calling-plan overhaul as a customer-acquisition move ahead of 4G. AT&T’s matching update turns a Verizon-led price change into a direct contest over the cost of voice service.

With both carriers’ revised plans taking effect on January 18, plan structure—not only network positioning—becomes an immediate lever for retaining and winning subscribers.

First-order effects

  • Verizon Wireless begins charging less for voice usage under its restructured plans, altering the price presented to its existing and prospective customers.
  • AT&T Wireless activates its updated plans in response, preventing Verizon from holding the lower-cost voice proposition uncontested.

Second-order effects

  • Verizon and AT&T must defend subscriber acquisition through recurring-plan value, since either carrier’s voice-price move can be answered quickly by the other.
  • Voice-plan comparisons become more consequential for customers choosing between the two carriers, increasing pressure to make pricing simpler and more competitive.

Third-order effects

  • If rapid plan matching persists, lower voice pricing becomes a less durable differentiator and carrier competition shifts toward the broader service package surrounding network upgrades.

The trend: U.S. wireless carriers are using recurring-plan pricing as a customer-acquisition tool alongside the transition toward 4G.