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After At&t Price Cuts, All Eyes On Verizon


Ron Burgundy
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The Droid Mini, Droid Ultra and Droid Maxx are seen on display during the Verizon Wireless media event in New York(Reuters) - AT&T Inc's plan to cut prices on its large shared data plans could prompt other U.S. carriers, particularly larger rival Verizon Wireless, to offer new discounts, analysts said. Including other charges, this would mean that a family of four would pay $160 per month or $100 less than Verizon Wireless or $80 less than Sprint Corp and $20 less than T-Mobile US for a comparable service, according to AT&T. AT&T's move follows recent price adjustments at the top U.S. wireless providers as they attempt to sustain growth in a mature market built on stealing growth from competitors. With these plans AT&T is still at a premium to Sprint and T-Mobile US, but a clear discount to Verizon," Wells Fargo Securities analyst Jennifer Fritzsche wrote in a note. "(Verizon) will be the one to watch, in our view as they have been on record saying it would react to price moves if they felt the need." AT&T's shares were down 2 percent at $33.32 in premarket trading on Monday, while Verizon's shares were down 1.5 percent at $47.25.




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