Not to be outdone by its smaller rival Verizon Wireless, No. 1 wireless carrier AT&T says it will also offer a $99-per-month, all-you-can-eat mobile phone service plan. This renders obsolete its $99, 2000 minute plan, its $149, 4000 minute plan, and its $199, 6000 minute plan.
Update: T-Mobile is in, also! The company will also offer $99/month unlimited calling, and will throw in unlimited IM/text/photo messaging, too.
To be clear: All these carriers are doing is slashing prices on expensive, niche plans for their most active users, which are already paying twice the average (~$40-$50) monthly bill. This means they won’t be able to nickel-and-dime those subscribers for going over their monthly minute allotments, which should be popular with business customers. (The carriers are now more interested in selling businesses $60/month wireless data plans, anyway.)
What they aren’t doing — yet: Slashing rates/overages on plans aimed at regular consumers, who spend $30-$50 per month on service. This suggests they haven’t yet felt much pressure from upstarts MetroPCS (PCS) and Leap Wireless (LEAP), which offer all-you-can-talk plans in many markets for as little as $40/month. But that could change sooner than later as MetroPCS and Leap expand into more markets. Expect Sprint Nextel (S), which is rapidly losing customers, to be among the most aggressive here.
NOW WATCH: Tech Insider videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.