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Reuters reports that Verizon Wireless is about to cut unlimited BroadbandAccess to $60 per month: The service, which includes unlimited 1xRTT (national) and 1xEV-DO (where available), currently runs $80 per month. Sprint Nextel is offering EVDO, and both companies will have a similar scale of footprint and a large overlap by early 2006.
It has long been said that Verizon was pricing EVDO so high because it could and because it needed to: it was unclear how such a deployment would work and, if it had initial massive uptake, whether systems and spectrum could handle it.
With many months of commercial testing and significant tests in trials before that, Verizon must be ready to cut gross margins to increase overall revenue. This cut makes EVDO even more competitive from the price perspective against Wi-Fi plans.
I have written for years about the three dials for mobile Internet access: ubiquity, speed, and cheapness. You can twiddle those dials all you want, but you can’t turn all three of them to full power yet. Future cell standards (HSDPA, etc.) and continued metro-scale Wi-Fi deployment with roaming coupled with mobile WiMax’s emergence in two to three years will create head-to-head competition, convergence, and co-opetition. [link via Engadget]
Posted by Glennf at August 28, 2005 2:59 PM
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