2008 Woodie Awards
Verizon Wireless sparks fixed-rate plan
By: Caitlin Foyt
Issue date: 2/27/08 Section: News
Verizon Wireless is offering a new plan that would allow students to talk buffet-style.
The fixed-rate plan, which first became available last week, has the potential to change the way people use their phones.
Much like Internet access, with payments starting off with per-minute pricing and later evolving to monthly flat rates after its rise in popularity, cell phones too have become staples to the majority.
"For $99.99, you get unlimited anytime (minutes) with any network, landlines included, or $199.99 with unlimited texting," said Jennifer Morgan, a sales representative at Baycom Inc. in Saginaw. "Most of the other (network) carriers are $199.99 (for the unlimited use) and this is the first plan Verizon has offered."
The plan also includes long-distance calls to 48 states.
Verizon Wireless' competitors have noticed the cheaper rates.
Dan Hydorn, a sales associate at the Mount Pleasant Sprint Store, 5565 W. Pickard Road., said the network currently is not offering a similar unlimited plan, but predicts there will be similar plans in the near future.
"It's a new trend," he said. "All places tend to follow suit to stay competitive. It's not really that threatening because 90 percent of consumers don't qualify for it. Why pay the extra $50 a month for it when you won't use those minutes?"
Previously, Verizon offered 2,000 minutes for the same price. Morgan said the new flat rate mostly will appeal to business professionals and college students.
"You don't have to cut calls early or keep track of minutes - it's just one flat rate. You don't have to worry about extra charge on your bill," Morgan said.
"A lot of businesses, they're going to love this plan.
They do the share plan the same way. Share plans are the same price as individual price."
Gaylord junior Brett Driver, an Alltel user, said he is unhappy with his payment plan.
His bill is supposed to be $55 per month, but he said his last two bills have been more than $150. He said even a flat rate of $119 would exceed his budget.
"I have the lowest text plan you can get," he said. "Every time I go over, it just blows me out of the water and my nights and weekends don't start until after 9 p.m. I actually just got off the phone telling (Alltel) that this has to stop. I'm fine with $55, but $120 a month is too much."
news@cm-life.com
The fixed-rate plan, which first became available last week, has the potential to change the way people use their phones.
Much like Internet access, with payments starting off with per-minute pricing and later evolving to monthly flat rates after its rise in popularity, cell phones too have become staples to the majority.
"For $99.99, you get unlimited anytime (minutes) with any network, landlines included, or $199.99 with unlimited texting," said Jennifer Morgan, a sales representative at Baycom Inc. in Saginaw. "Most of the other (network) carriers are $199.99 (for the unlimited use) and this is the first plan Verizon has offered."
The plan also includes long-distance calls to 48 states.
Verizon Wireless' competitors have noticed the cheaper rates.
Dan Hydorn, a sales associate at the Mount Pleasant Sprint Store, 5565 W. Pickard Road., said the network currently is not offering a similar unlimited plan, but predicts there will be similar plans in the near future.
"It's a new trend," he said. "All places tend to follow suit to stay competitive. It's not really that threatening because 90 percent of consumers don't qualify for it. Why pay the extra $50 a month for it when you won't use those minutes?"
Previously, Verizon offered 2,000 minutes for the same price. Morgan said the new flat rate mostly will appeal to business professionals and college students.
"You don't have to cut calls early or keep track of minutes - it's just one flat rate. You don't have to worry about extra charge on your bill," Morgan said.
"A lot of businesses, they're going to love this plan.
They do the share plan the same way. Share plans are the same price as individual price."
Gaylord junior Brett Driver, an Alltel user, said he is unhappy with his payment plan.
His bill is supposed to be $55 per month, but he said his last two bills have been more than $150. He said even a flat rate of $119 would exceed his budget.
"I have the lowest text plan you can get," he said. "Every time I go over, it just blows me out of the water and my nights and weekends don't start until after 9 p.m. I actually just got off the phone telling (Alltel) that this has to stop. I'm fine with $55, but $120 a month is too much."
news@cm-life.com
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