Thursday, October 7, 2010

AT&T Responds to Virgin Mobile with No-Contract Plans

Virgin Mobile's unlimited, no-contract data plan seems to have rattled AT&T's cage: Virgin back on 23 August announced a change in its no-contract plan options. Instead of four tiered plans, the highest offering up to 5 GB used within 30 days (on Sprint's network) for $60, there would be two: a $10/10-day/100 MB option and unlimited 30-day usage for $40.

That so undercut the rest of the market, I was wondering if there would be any response. Verizon has long offered a one-day $15 data pass, which always seemed overpriced to me since the market it was trying to reach were those with otherwise inactive 3G cards or MiFis.

AT&T's response appears to be a modest rejoinder. Three tiers: $15 for 100 MB used within a day, $30 for 300 MB used within a week, and $50 for 1 GB used within a month.

What AT&T doesn't seem to still realize is that Virgin Mobile's deal can be paired with a $100 MiFi (no contract), meaning that a few months of AT&T-priced usage would be outweighed by cost savings and flexibility. AT&T doesn't offer a MiFi-like device, and thus service is limited to laptop cards and notebooks.

It's a step in the right direction, as was AT&T's change to metered 3G broadband with reasonable overage charges for heavier users.



Virgin Offers MiFi without ContractLily Allen hopes to ‘fade into oblivion’