Mobile Market Competition is Exploding

Though regulators at the Federal Communications Commission seem to believe otherwise, competition in the mobile industry is in one of those explosive moments, when competition is escalating to new levels. In the prepaid market, multiple carriers have launched unlimited domestic calling plans at prices ranging from about $40 to $55 a month, destroying the price floor for unlimited calling plans.

Sprint has been aggressive with any number of "unlimited use" plans of its own, while AT&T two days ago launched its "A-List" program allowing users to designate five numbers, on any network, for unlimited calling. AT&T family plans can designate 10 such numbers.

Sprint responded 24 hours later with "Any Mobile, Anytime," a new feature of Sprint "Everything Data" plans that allows calling to any U.S. wireless number, on any carrier's network, at any time, without additional charge. The plan moves beyond existing "friends and family" or "calling circle" plans that typically include only mobiles on a single carrier network.

T-Mobile has been running such calling circle programs for a while under the "myFaves" program, allowing designatiion of five numbers on any network that can be called on an unlimited basis, for free.

Taken as a whole, all the moves suggest a new wave of competition now is resetting industry understanding of what a competitive "unlimited" offer looks like. Ultimately, consumer expectations of what features and services should be available on an "unlimited" basis also will change, in ways that provide lots more value.

That carriers are willing to move in this direction is partly a function of intense competition in the wireless market. Such moves also likely are the result of better data mining and lower interconnection costs.

For most users, the difference between "truly unlimited" domestic calling and "a reasonable bucket of minutes" is close to zero. And, without, question, "unlimited" is a better marketing platform. Still, off-network termination carries real costs. That carriers are willing to do so shows the extent of competition in the marketplace.