Verizon Wireless (NYSE: VZ) is rolling out an unlimited flat rate monthly plan today, which it says will help it lock down high end users. But is Verizon's "Nationwide Unlimited Anytime Minutes Plan"-starting from $99 a month-the beginning of the end for operators? That is, will Verizon's plan spark a price war that will lead to the commoditization of mobile voice calls?
USAToday.com reports that Verizon COO Jack Plating says the company "isn't expecting a price war," and that the plans are really aimed at high-end customers who spend at least $100 month for mobile services. But he added that Verizon would be able to differentiate itself with the quality of its network should other operators match its plan. Full list of changes from Verizon are here.
Plating also said that Verizon is not abandoning the lucrative "bucket business." Operators usually price minutes by the "bucket,"-for example, 450 minutes for $39.99 a month-and literally bank on the fact that consumers will go over their allotted talk time. "Millions" of wireless consumers apparently exceed their minutes each month, and are then charged up to $0.55 a minute for calls. Apparently, these charges are called "overages" and make up around 15 percent of the wireless industry's annual revenue.
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