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News
Issue #2002 - 35 (September 2002)
(Updated Sep. 18, 2002)

INFRASTRUCTURE, PRODUCTS & SERVICES

AT&T Offers Unlimited Plan on GPRS

AT&T Wireless Services Inc. this week began offering a promotional plan that lets subscribers make unlimited calls on its high-speed GPRS network. The plan, priced at $99.99 per month, is designed to compete with similar plans by other carriers and to encourage adoption of the new network. The company also is offering a promotional plan that includes 1,000 minutes, which can be used any time of day, for $39.99 per month.

Acknowledging analyst concerns that lowering prices for still-new services could be a bad sign for the wireless industry, a spokeswoman for the Redmond, Wash., company said the plan was "definitely limited." But there is no set date for the end of the promotion, which is available in one- or two-year contracts.

Other carriers have been dabbling in unlimited data plans, as well. Sprint PCS Group, which launched its high-speed network last month, offers a promotional deal for business customers of $49.99 per month for the first three months of unlimited usage and $99.99 thereafter for a one-year contract. Sprint has not said how long the promotion will last, either.

For more information: www.attws.com

MobileInfo Comments and Advisory:  We were led to believe that this was for both voice and data but were wrong. AT&T clarified that the plan was for voice only. We think that only some of the carriers are getting the message  that they must convince consumers and enterprise professionals alike of the value of wireless data applications by making the service more affordable - at least initially. When pricing is based on costs and not on what the market will bear, it loses relevance. That's what we were taught in the marketing school. Why did it take so much time for the marketing executives to realize a fundamental principle, we do not know? Perhaps the CFO's are putting too much pressure on pricing. 

AT&T needs to offer some sort of plan for wireless data without artificial limits. Their counterparts in Canada are offering unlimited data plan for six months to one year. 

Note: This news release may contain forward-looking statements. Readers should take appropriate caution in developing plans utilizing these products, services and technology architectures.  All trademarks used in this summary are the property of their respective owners.


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