Verizon, AT&T Cut Mobile Prices While Boosting Data Plans

Verizon Communications Inc. (VZ) and AT&T Inc. (T), firing back at Sprint Corp.’s discount data offer, have introduced another round of price cuts on shared wireless plans as carriers continue to fight for new subscribers.

Starting today, Verizon is cutting its $100 10-gigabyte plan to $80 a month and its $110 15-gigabyte to $100 a month. Starting tomorrow, AT&T is offering a 3-gigabyte shared data plan for $40 and 6 gigabytes for $70. AT&T currently charges $40 for 2 gigabytes and $80 for 6 gigabytes.

The moves come after Sprint introduced a double data offer in October that features 20 gigabytes for $100, twice the allotment of T-Mobile US Inc.’s 10-gigabyte $100 plan. It’s the lowest price for data among the four carriers.

The price cutting has had an effect on industry profits. Verizon, AT&T and T-Mobile all reported lower-than-expected bottom-line results in October.

Verizon announced the price plan on its blog yesterday, while AT&T unveiled its new prices in a press release.

Source: Bloomberg