AT&T & Verizon Start Price War

With AT&T Inc. (NYSE: T) and Verizon Wireless debuting new lower-cost plans Monday, consumers were hoping a possible price war would lead to better prices. AT&T followed up with its price cuts after Verizon Wireless unveiled a brace of new plans Friday.

Both firms are seeking to keep revenues and profits stable while attempting to deal with increasingly congested networks as Americans flock to smartphones. AT&T, under network congestion pressure due to the success of its iPhone, unveiled new plans across-the-board, but seemed to be concentrating on its smartphone lineup with its new service plans.

"With more than twice the number of smartphone customers as our nearest competitor, we are committed to offering great value and choice for customers who want to talk, text, and surf," said Ralph de la Vega, president and CEO of AT&T Mobility and Consumer Markets, in a statement. "Our new plans reflect customers' continuing desire to do more with their phones -- including talking and browsing the Web at the same time."

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— W. David Gardner, InformationWeek

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