AT&T plan ends limits for cell calls

[TNDan21]

AT&T plan ends limits for cell calls


By Ben Charny
Staff Writer, CNET News.com
September 5, 2002, 1:24 PM PT


AT&T Wireless began offering a new subscription plan Thursday that lets customers place unlimited domestic calls anytime they want for a flat rate.
The new service costs $99.99 a month, with no roaming charges, according to AT&T Wireless spokesman Mark Siegel. Before Thursday's announcement, the company offered unlimited calling inside the United States, but only during nights and weekends, which is similar to other carriers' plans.

Siegel believes the new plan, which will be offered for a limited time, is the first among major U.S. carriers to "lift all the distinctions. Days, nights, long distance, weekends...all those distinctions, go away," he said.



A smaller U.S. wireless carrier, Leap Wireless International, has sold similar plans for at least two years. It charges $32.99 to make an unlimited number of calls and offers free incoming calls, said Leap Wireless Chief Executive Harvey White. Another carrier, Alltel, has had a similar service since 2000.

"It's reasonable to see that other people want to copy that," White said. "But there's a huge difference between $32.99 and $99."

Bryan Prohm of Gartner Dataquest said AT&T Wireless' new plan could be popular if more people choose to make their cell phones their only phones. So far only about 2 percent of all U.S. residents have traded in their landline phone service for mobiles, but Prohm said that number is sure to increase.

"If you're targeting landline replacement, this could help them cut the cord," he said. "The $99 price is a pretty significant amount of money to spend a month on wireless."

The AT&T Wireless plan is about $40 higher than an average monthly cell phone bill and is designed "obviously for those who use their phone a lot," Siegel said. To get the service, customers must sign a one- or two-year contract and buy a new phone that uses the cell phone standard known as GSM (Global System for Mobile Communications). The GSM phones range from $150 to $200.

The carrier is using the offer to attract customers to its new GSM network, which supposedly triples the number of telephone calls that can be handled simultaneously compared with its older cell phone network. The GSM network can service customers in about 80 percent of the nation's major markets. By year's end, it will reach all of the country's top markets, Siegel said.

Siegel declined to reveal the number of AT&T Wireless GSM subscribers. But by most estimates, the company is way behind its competitors.

Prohm estimates that AT&T Wireless has about 100,000 GSM subscribers. In comparison, T-Mobile has 8 million GSM subscribers, and Cingular Wireless has about 4 million, according to Prohm.

Representatives of other carriers, including Verizon Wireless and Sprint PCS, said they don't plan new services like AT&T's just yet.

AT&T plan ends limits for cell calls

[KevinJames]

nice post. I could see this being very attractive to the business user that also wants to use the phone for personal reasons. Instead of paying the difference on overage minutes (a potentially large figure), I could see agreements being made between the employer and employee to pay a certain percentage of the rate. That way they both win.

[mcf04581]

This sounds awesome, but if you look at Leap or Alltell, they have the same thing but the coverage areas are local and with Alltell, the local coverage for unlimited is smaller than general local. I understand that the post did state their would be no roaming or long distance and what not, but think about network capacity. At&t has already come to the conclusion that much of their network is not up to capacity standards. If you add a bunch of business users talking away, more so than usual, then what is going to happen to the already bogged down network? I give them credit for stepping up and trying something new though. Just my 2 cents.

[ronin]

Does ATTWS have this on their website yet? I didn't see it.

edit:

I found it. Looks like the unlimited minutes are only good for the initial contract period and you will pay roaming if you go off the GSM network

http://www.attws.com/mobileinternet/..._charter.jhtml

[Jack]

You can not go off the gsm network. At&T does not have roaming agreements with other GSM providers.

They did have a ad in the paper for the the unlimited plan.

As long as you have a at&t wireless gsm signal then you pay no roaming or Long distance

Jack

[bassman]

I would consider it but it just seems like with their GSM system ATT is putting the cart wayyyy ahead of the horse. Their GSM coverage map is frightening! If I knew for sure that they are going to put a lot of effort into expanding GSM coverage so that it eventually matches TDMA coverage then HELL YES!

[IdiOTeQnoLogY]

they are bassman. they are overlaying their entire network with GSM/GPRS so it will equal their TDMA and then rival it as all new expansion i take it will be created in GSM. but for now, yeah the GSM coverage is scary for a national traveller. still to early to sign up...for people that stay local GSM with ATT it may suffice

[ehcruzan]

I thought it was just me....there's barely anything on their GSM map!

[ronin]

I was considering switching until I saw there coverage. Basically, I would have to stay between Charlotte and Raleigh on the I40/I85 corridor to remain on the network.

I'll wait. I'm happy with my current TDMA phone and plan so no real reason for me to switch.

[cryogenic]

Jack, according to AT&T's website they have a roaming agreement with Cingular in East TN and parts of SC as well... but they don't have agreements with Cingular for their entire DCS markets; I guess just the parts they want.