Verizon Wireless: Calling in a new flat-rate plan

"Usually what happens in wireless is that by the time new products are announced, the customer benefit isn't as great as it might first seem. For example, a Verizon customer can today get 2,000 minutes for that same $99.99. While unlimited is obviously greater than 2,000, that current plan includes unlimited nights and weekends, as well as free calling to other Verizon customers (some 60 million or more). So, at the end of the day, for existing Verizon customers, this plan only benefits those who use more than 2,000 minutes during peak time (6 am to 9 pm weekdays) and calling people who aren't other Verizon Wireless customers. My guess is that's not a huge share of their customer base, although it could offer savings to those who would trade down from the $149.99 or $199.99 plans.

"The real benefit for Verizon is on the marketing side. They are the first large carrier to roll this out nationally, so could be quite attractive to heavy users currently with other carriers. This could also be of interest to people whose usage is heavy and bounces around a lot. People like knowing what their bills will be, and this eliminates the overage risk for voice calling."

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements.