Wireless Price Wars Likely To Hurt Landline Carriers

There's an overlooked story in the excitement over the escalating price war in the wireless service business. AT&T (T) and Verizon Wireless (VZ) this week unveiled unlimited calling plans for $100 a month. T Mobile matched that and included text messaging. Now Sprint (S) is expected to leap in with a similar plan at an even lower price.

Price wars always hurt somebody. In this case, the worst damage won't be in the actual cellular business. The real victims will be land-line operations of AT&T  and Verizon. Verizon, for instance, has a Verizon Freedom phone package that's roughly equivalent to what you'd get with an unlimited cell plan -- unlimited local and long-distance calling and features such as call waiting. The Freedom package costs $57. If you live alone, get an unlimited cell plan and have good cell coverage in your home -- why would you have a land line? Couples or roommates might ask the same.

For what it's worth, I haven't had a land line for six months, relying instead on my cell and Skype. I'm not missing the land line.

Comments

[Joe M:]

Kevin, in reference to the cell phone price wars, you stated you no longer have a land line phone and rely exclusively with your wireless phone and Skype. How do you communicate via the internet? I would be lost if could not access the web via high speed DSL which means I must use a land line telephone company or a land line cable company to access the Internet.

2008 Feb 21 02:41 PM

[User 149155:]

this is only a concern with metro areas correct?
I understand the concern with loss of landlines, I myself do not have a home land line, only a cell and broadband internet card.
Rural areas I don't believe will be affected due to lack of cell coverage/competitors..... example CZN, WIN etc.....

2008 Feb 23 08:52 PM