The wireless telecom industry is very intriguing to me.  I’ve written about AT&T and Verizon before, and more specifically about the battle for subscribers and the expansion of wireless data network infrastructure.

AT&T has been growing fairly extensively over the last several years primarily due to the cult like popularity of the iPhone, which AT&T has had exclusive rights to from the initial iPhone release.

Verizon is on the verge of releasing the “Droid” Android phone which I hear is garnering great pre-release reviews.

As I’ve mentioned in my previous posts, wireless providers are running out of marketing gimmicks to attract new subscribers, at least as it pertains to phone costs.  Carriers are practically giving away high tech and very capable smart phones a la the Blackberry and make their money on the monthly plans.  So with the cost of the hardware already at zero, the only other front to wage war is on the plans themselves.

This is where Verizon, specifically, is starting to reveal it’s elitist mentality.

In an article over at The Wall Street Journal, Verizon CEO Ivan Seidenberg said that while T-Mobile rolled out new low cost plans over the last weekend, his company had no intentions of doing so.

Verizon does have great coverage, and for those who need to be connected anytime all the time, they may be willing to pay a premium for the service.  The average Joe I suspect, will still go with the low cost provider.  Coverage at the big carriers is so widespread and evolving so quickly that service and coverage are starting to come to parity.  With that in mind, the last competitive advantage is coming down to price.

And Verizon is losing.

To me, it seems a bit arrogant that Verizon doesn’t want to respond to T-Mobile’s new pricing plans.  They’re losing the market to AT&T through the iPhone popularity, and while the Droid may be great, it’s going to come at a hefty price.

And I don’t mean for the phone.

Technology AT&T, cell phone, connectivity, iPhone, Verizon, wireless plan

It’s tough for me to say anything negative about my Verizon Wireless (VZ: chart, web, Y!) service.

It’s always available and it’s been years since I’ve had a dropped call.  It even worked in the Caribbean when I was there on business early last year; so there is something to be said for “the network”.

The only complaint I have is the cost of the service itself in relation to the features provided.  For $59.99 per month (plus the $20 in taxes and fees) I get 550 minutes between my wife and I.  As I’ve mentioned before, we don’t even come close to using those minutes.

I suppose you could say I’m eager to see how these down economic times will shape not just technology, but pricing in the very near future.

I’d love to have something like a Blackberry, and Verizon would practically give me a device for free.  But the $70+ service is really driving me away, and that doesn’t include the additional money for the traditional cell phone service for my wife.

In a fairly recent issue of BusinessWeek, the big three in wireless service here in the United States are seeing competition accelerate as buyers of pricey services and phones have tightened their belts.

The article mentioned that the battle is heating up in wireless data service, and the desire to grow the market while bringing down prices.  AT&T (VZ: chart, web, Y!) for instance has an 8.6% share in wireless data, compared to 16.4% for Sprint (S: chart, web, Y!) and Verizon’s 10.9%.

Verizon tends to be a bit hamstrung by 45% stakeholder Vodafone (VOD: chart, web, Y!)  (popular in Europe) and Sprint has been facing a recurring challenge in attracting and retaining customers.  Service has been spotty, customer support lacking, and product lines have been thin.

AT&T on the other hand holds a 100% stake in wireless and has its fingers in a lot of different telecom markets (a la AT&T UVerse).  They’ve got a decent amount of cash and low capital requirements to maintain their infrastructure.

The Apple (AAPL: chart, web, Y!)  iPhone has almost reached cult status, and I have to admit, I’m not much of an Apple guy, but I love the idea of an iPhone (again, besides the service price) and own a iPod.

I’m going to continue watching how the AT&T vs. Verizon vs. Sprint battle plays out, but I think if prices start coming down and consumer spending starts going up, it may be worth buying some shares of AT&T.

Investing, Stock Thoughts, Technology AT&T, sprint, telecom, Verizon

Yesterday I called up AT&T and asked them to disconnect my second phone line that was a dedicated fax line.  Over the past year I think I’ve sent one fax, and naturally that can’t justify the $26 per month cost to maintain the line.

I’m not at a point where I’m trying to cut expenses, but it’s as good a time as any since no ones job is really secure.

So I disconnected the fax line, but left my main phone line intact.  For some reason I like having the old copper, twisted pair line running to the house.

Some people have gone strictly wireless, and for good reason.  But I like the ability to give out my home phone number on applications and when filling out forms that “require” a phone number.  It’s much easier to let the answering machine screen my calls than get bugged in the middle of the day by my credit card company with the latest and greatest offer for its best customers.

One good outcome of disconnecting my fax line was that the customer service representative at AT&T was able ot convert my main phone line to a more basic program that cost $4 less per month, but gave me features I didn’t have; namely caller ID and call waiting.

To be honest, I could care less about caller ID and call waiting.  I’ve never had either of them in my life, and considering how much we use the land line, I probably won’t get much value out of them.  I will however get the $4 per month value out of the new program, and that part I like.

So I’m still wired, and not willing to give up the “old style” land line, but I’m also not spending money on service I don’t use.

What are you doing to save money these days?

Frugal Living, Saving AT&T, fax machine, phone service