Verizon Wireless "Share Everything" Might be Controversial to Some, but is Indeed "Revolutionary"

Some don't think there is anything revolutionary about Verizon Wireless "Share Everything" plan. Some would disagree. Some might not remember, but there used to be a difference between a U.S. domestic mobile "long distance" call and a "local" call. There used to be a difference between a domestic U.S. landline call. 


But then AT&T introduced "Digital One Rate." Industry pricing changed dramatically. Keep in mind, there was skepticism about Digital One Rate when it was launched, as well.


Dan Hesse, Sprint Nextel CEO, was CEO of AT&T Wireless Services back in 1998, not many will recall. That was the month Hesse was able to act on a vision he had strenuously to sell to his superiors: that wireline minutes of use could be shifted to wireless, saving at&t money on access fees by doing so.

The Digital One Rate plan was not primarily aimed against other wireless carriers at all, but rather at reducing a significant cost of doing business on the AT&T long distance side of the house. 

At the time, Hesse pointed out that "we're taking a chunk out of revenue usually going to our competitors," meaning by that the Regional Bell Operating Companies that at&t had to pay access fees to.

The point is that major packaging initiatives can have unanticipated consequences. Digital One Rate was just a way to save AT&T long distance operations money on terminating traffic charges paid out to local carriers. 

But you might argue that Digital One Rate had more impact on the market, and consumer welfare, than did the Telecommunications Act of 1996, the first major revamp of U.S. telecommunications law since 1934. 

Something similar might  be said about the impact of family plans for voice and text messaging, which were adopted essentially for the purpose of turning teenagers into mobile users. It worked.

"Share Everything" might have similar unanticipated, and many expected, consequences.