ATT lowers rates to match rival carrier

AT&T has already responded to Verizon's rate cuts with similar drops of its own. Beyond matching the prices of its unlimited voice and voice-plus-messaging plans, AT&T has now lowered the cost of a smartphone or iPhone plan with unlimited voice to $100. Previously, the company had charged a total $130 for the same level of service.

Prices for regular unlimited service vary from $70 for just voice to $90 for this as well as messaging on "quick messaging" devices with dedicated QWERTY keyboards. Family plans for these climb to $120 and $150, while a smartphone or iPhone bundle costs $180.

The deals should take effect January 18th and will let existing customers update their plans with the lower costs without having to extend their contracts.

AT&T's sudden price cut reflects an increasing push towards unlimited usage plans at US cellular providers, most of which have an unlimited option or which give more calling time in certain conditions. Along with appealing to those replacing their landlines entirely with cellphones, it helps drive the average revenue per user upwards as those who call frequently opt for unlimited plans rather than simply opting for a large amount of minutes.

By Electronista Staff