I started to write a series of articles on how the different carriers were aligning their business plan to capture a bigger part of the cell phone pie almost two years ago. Remember names like Nextel and ALLTEL we have found them gobbled up by the four remaining carriers. The big four left standing are Verizon, AT&T, Sprint and T-Mobile and they want you!
First plan was to not give up dollars to attract new customers so they started looking for phones to tease us with so we had to switch. The big four jumped into bed with the major manufactures to offer their phones exclusively, AT&T and Apple, Sprint and Palm Pre, Verizon and the Droid and T-Mobile with the Nexus One.
Guess what it didn't work! Some did switch but not the millions they hoped for.
Second plan offer unlimited calling plans at a reasonable price. I personally took my phone bill up $21 and now have unlimited calling. As soon as Sprint announced the $99 for everything plan we saw the others follow with unlimited plans BUT did you notice the folks who use data plans nothing changed? It's great to advertise $99 for unlimited calling then in the small print say $30 for data plan $5 for texting and so on.
Guess what it didn't work! It all happened so fast nobody had time to switch and them all four ended up losing dollars.
Third plan start slashing prices on unlimited plans while keeping all the other charges the same. Makes for nice TV ads to show flipping a 9 to a 6 but again they still punish those of us that use the phone for everything they are made to do.
Guess what it won't work! Metro PCS has $40 flat for everything, Cricket is out there and Sprint bless their heart already cut prices and loss market share.
Fourth plan to come raise the price of phones stop doing two year contract and slash prices.
Guess what T-Mobile is already doing it and not shifting market share.
So what is happening in the industry here are some facts from the website Entangled Particles
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In closing here's what I found in my email some of you will enjoy this!
Important Notice from the United States District Court for the District of New Jersey about a Class Action Settlement.
A proposed Settlement has been reached in a class action alleging that AT&T Mobility's flat-rate Early Termination Fee (generally between $150 and $175) was unlawful. The Settlement resolves several other cases that challenge AT&T Mobility's flat-rate ETF. AT&T Mobility strongly denies any wrongdoing, but has agreed to settle to avoid the burden and cost of further litigation. The sole purpose of this notice is to inform you of the Settlement so that you may decide what to do. If the Settlement is approved, a settlement fund of $16,000,000 in cash and $2,000,000 in non-cash benefits will be created.
Dick Betts
National Real Estate Speaker
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