20030418Staff 2nd Resp - attach M -2 ATT Wireless Sets New Plans.htm

AT&T Wireless Sets New Plans, Reduces Free Minutes :: consumer wireless :: info on wireless gear

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index.php?name=News&catid=15Calling Plans:
index.php?name=News&file=article&sid=64&mode=thread&order=0&thold=0AT&T Wireless Sets New Plans, Reduces Free Minutes Posted by: brian
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http://news.yahoo.com/news?tmpl=story2&ncid=1293&e=3&u=/nm/20030208/tc_nm/telecoms_attwireless_price_dc&sid=95573419AT&T Wireless Services Inc. (NYSE:AWE), the nation's third-largest wireless telephone company, on Friday said it would introduce new plans starting next week that effectively raise prices by cutting the number of minutes included. The move, which was widely expected, also cuts by half the number of plans offered by AT&T Wireless, simplifying choices for customers.

AT&T Wireless is the latest company to increase prices, as the industry focuses on adding customers profitably.

It also helps alleviate analysts' fears of a price war, which were prompted by cuts in the price of calling plans and aggressive discounts on cell phones late last year following signs of an industrywide slowdown in customer growth.

In recent weeks, companies like T-Mobile USA (DTEGn.DE) and U.S. Cellular Corp. (AMEX:USM) have reduced the number of minutes they offer under some plans. The nation's largest wireless operator, Verizon Wireless (NYSE:VZ) (VOD.L), has also ended many of its cell phone promotions.

AT&T Wireless, based in Redmond, Washington, said it was offering new local and national plans ranging from $19.99 to $299.99 a month.

The $19.99 "mLife Local Plan," for example, will include 45 minutes a month compared with the 60 minutes offered now on its Web site.

The $19.99 "mLife National Plan," which lets customers use their cell phones anywhere on AT&T Wireless' network nationwide, will include 30 minutes a month, compared with the 60 minutes offered now under its "National GSM Charter Plan."

Mark Siegel, a spokesman for AT&T Wireless, said the changes will only apply to new customers, who are signing up for service. Existing customers can keep their current plans.

The "GSM Charter Plan" was introduced last September to promote AT&T Wireless' new Global System for Mobile Communication (GSM) network.

The company had previously based its network on a standard called Time Division Multiple Access (TDMA), but is in the process of switching over to GSM, the world's dominant standard.

AT&T Wireless currently offers services on both networks, and had been offering separate price plans for each, but the new plans apply for both networks.

"It's a simplification of all of our offers," said Siegel. "The issue of network is completely transparent to (customers)."

AT&T Wireless said it was eliminating its regional plan, which offered a slightly wider coverage area than the local plan.

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