This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Verizon Offers Will Rattle Wireless World

A bombshell announcement this morning from Verizon Wireless could shake up the industry.

Verizon Wireless, a joint venture of Verizon (VZ - Get Report) and Vodafone (VOD), is known for charging some of the highest rates in the U.S. for its wireless services. Now it has decided to shock the industry and begin offering flat-rate, all-you-can-talk plans. Prices begin at $99.99 a month.

Heralded in full-color, full page newspaper ads, Verizon Wireless is now offering one-price, unlimited calling plans to new subscribers.

The new "Truly Unlimited Calling" plans boast:

  • Unlimited, anytime minutes to anyone in the U.S., even when calling another network or landline.

  • Talk as much as you want.

  • Mobile Web 2.0 (HTML) browsing.

  • No domestic roaming or long distance charges.

There are actually three new plans. The Basic Plan for single line phones is $99.99 per month. The Select Plan adds unlimited messaging to anyone, on any network, in the U.S. is $119.95 per month and the Premium Plan, which adds V Cast and VZ Navigator services as well as Mobile Email (and unlimited domestic messaging from the Select Plan) will sell for 139.99 per month. Family SharePlans are also priced accordingly.

Data, sent or received, including what Verizon Wireless calls Mobile Web ads, is an additional $1.99 per month per MB with the first two plans -- and free with the premium plan.

Fees, taxes (some of which can run as much as 35%) and activation fees are, of course extra. So are international calls and just about anything else you can think of.

This could turn out to be a clever marketing scheme. But, I'm sure Verizon Wireless did its homework in advance. It's probably not counting on losing money by offering these larger "full bucket" service plans.

For its current, high-paying, heavy-use customers using their cellular phones for most or all of their voice calls it's a great deal.

On the other hand, the vast majority of cellular users opt for the lowest-priced phones and monthly plans.

Although this new offer might not sway all of them to switch, it could appeal to people who are currently paying, say $60 or $70 per month for far fewer minutes. Every customer who switches will be paying Verizon more per month. That marketing ploy could help Verizon's bottom line.

It will also be interesting to see how other wireless carriers react. Trying to match, or beat, Verizon's new plans could be a problem for Sprint (S) (still reeling from their purchase of Nextel) and maybe even T-Mobile (DT) (the company which usually offers the most user-friendly prices).

Verizon Wireless says its "Truly Unlimited" calling plans are a limited-time offer.

I can assure you if they're successful, they'll be around for a long time.

Gary Krakow is's senior technology correspondent.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
S $5.20 -0.76%
VZ $49.03 -1.00%
VOD $34.58 -0.12%
AAPL $128.37 -0.77%
FB $80.84 1.60%


DOW 18,102.36 -101.01 -0.55%
S&P 500 2,099.49 -8.29 -0.39%
NASDAQ 4,970.3590 -9.5420 -0.19%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs