It was only a matter of time actually, and now it really is happening -- the unlimited wars are now on prepaid, thanks to AT&T, T-Mobile, and Sprint. T-Mobile and Sprint, of course, fired the first shots back in August of last year when they launched their respective unlimited data options, effectively igniting a war over who has got the better unlimited offering.
Quite unsurprisingly, the competition has intensified in the last few months, notably with Verizon Wireless deciding to join in on the fun several weeks ago. Interestingly, the Big Red had always been reluctant to give in to the unlimited craze, but perhaps it could no longer afford to make a countermove. Following Verizon’s announcement, AT&T also elected soon after to make its unlimited option available to all mobile users, not only to those who signed up for its DirecTV video streaming offering. As expected, these wireless carriers have continuously tried to enhance their respective unlimited deals by reducing the pricing and even incorporating additional benefits such as HD video and data allowances for hotspot usage.
This time around, these mobile operators are extending their unlimited options to their prepaid subsidiaries. Take AT&T, for instance -- the second biggest wireless carrier in America has reduced the price of its current unlimited plan on its prepaid arm Cricket Wireless from $70 to $60 per month. T-Mobile, meanwhile, has now included unlimited data on its prepaid brand MetroPCS’ 8 gigabyte a month plan. As for Sprint, its Boost Mobile has already started selling four lines of service of compressed unlimited data for $100 per month for customers who decide to switch operators.
It bears noting that the prepaid market is already as competitive as it gets, with Cricket Wireless, MetroPCS, and Boost Mobile all launching recent deals more than a month ago. For example, on top of introducing a $50 a month unlimited plan, MetroPCS has also raised instant rebates for switching customers. Cricket Wireless, meanwhile, has introduced a $50 bill credit and started offering five Galaxy devices with wireless service, free of charge, for $100 per month.
The last couple of years have seen the gap between prepaid and postpaid continue to shrink. More and more mobile operators now are witnessing their prepaid average revenue per user (ARPU) grow even as their average revenues every month from postpaid customers are declining. The result is that carriers are now focusing more on their prepaids plans than ever before.
