Price wars have begun

Price wars have begun

It has been a while in the US wireless industry since the price wars captured the headlines. Not anymore, not to be outdone, AT&T, Verizon, and T-Mobile announced flat rate pricing of $99.99 for unlimited calling (some included some data usage as well) while Sprint is going to do the same in the near future. I have been mentioning the coming trend of flat-rate for everything in wireless since Willcom did that in Japan and forced the bigger carriers to change their business models. The trend then went into Europe and now coming to North America.

Going forward there will be more flat pricing bundling. This is good for the consumer but has the potential to cut into the healthy 15% overage margins for the operators.