Feb 19, 2008 3:55 PM,

AT&T: We’ll take the all-you-can-eat special, too

By Sarah Reedy

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Just hours after Verizon announced unlimited calling plans, AT&T follows suit

Within hours of Verizon’s announcement of unlimited calling plans, AT&T proved many speculators right and followed up with its own $100 unlimited voice plan for new and existing customers. Like Verizon’s plan, AT&T will offer the flat rate on all devices with no domestic roaming or long-distance charges.

The plan, available beginning on Feb. 22, can be combined with any current wireless data plan and does not require extending existing contracts. New customers can choose between a month-to-month contract or a 12- or 24-month commitment. AT&T offers a few different data plans that can be paired up with the voice plan, including one with unlimited messaging and Media Net access for $35.

Telecom analyst Jeff Kagan said that as the largest carrier, AT&T wouldn’t be pressured into making any concessions just for the sake it. He said AT&T does what it feels is best for the company. In this instance, AT&T President and CEO Ralph de la Vega indicated that staying competitive as quickly as possible was what was best.

“This is a highly competitive market, and we’re committed to moving fast to meet customer needs,” de la Vega said in a prepared statement.

Now the next logical question is, who else will follow suit? T-Mobile has a reputation being customer friendly and having the lowest prices, Kagan said, but this doesn’t necessarily indicate they too will get on board.

“T-Mobile hasn’t really reacted to these things,” he said. “T-Mobile is a lower-priced service for customers that want phone and messaging, and they are starting to branch out into other areas. T-Mobile is successful, and they are doing better than I thought they would have. Two or three years ago, I would’ve thought T-Mobile was in trouble because they weren’t involved in all these other areas, yet they keep on expanding and getting more customers. They focus on the customer that doesn’t spend money; that is a lower-value customer.”