Verizon to Offer iPhone Unlimited Plans?

Verizon Wireless will offer unlimited data-use plans when it starts selling the iPhone around the end of this month, the Wall Street Journal reports. Though Verizon has said in the past that some form of pricing that better matches usage and retail cost was going to be necessary, the possible move would offer differentiation from AT&T plans which are capped.

At one level the moves are simply part of the on-going chess match over customer acquisition and retention that all the mobile carriers must contend with on a daily basis. AT&T has taken steps to shore up its iPhone customer base from defection to Verizon, in part by offering recent attractive upgrade prices that come with two-year service contracts.

"Unlimited" or non-capped plans would provide existing AT&T iPhone customers a reason to switch providers, especially when such customers would have to buy new phones for the Verizon network.

At another level the move shows confidence about the network's ability to handle an expected surge of data traffic, as well as the ability to shift some existing demand from the 3G network to the new 4G network.

The customer benefit the Verizon unlimited service plan and AT&T device upgrade offer also suggest that despite occasional arguments about lack of competition, the mobile markets are more than workably competitive. It is a reasonable argument that AT&T "had" to offer $49 iPhone 4 handsets, and Verizon was "compelled" to offer unlimited service, even though both moves will hit earnings.

Verizon to Offer iPhone Users Unlimited Data Plans - WSJ.com: (subscription required)