Verizon Communication, Inc. (NYSE: VZ) announced to provide a package that includes unlimited data, a move that intensities the competition among the four biggest U.S. wireless carriers.
The biggest U.S. wireless carrier said the new package will be priced at $80 a month on a single line, with unlimited data, talk and text. While the family plan will cost $180 with four lines. Verizon will begin selling the new plan on Monday.
The move comes after the rising competition in the wireless industry. Verizon is losing customers to smaller wireless carriers like T-Mobile and Sprint Corp., which has been aggressively pushing unlimited plans as more people read video and photos via social media networks. Verizon only added 591,000 wireless subscribers in the fourth quarter, much less than T-Mobile.
Verizon shares fell 0.88 percent to $48.55 on Monday. The stock had fell as much as 9 percent this year.
Verizon had been moving away from unlimited data plans since 2011, arguing that the company could better serve the highest-paying customers by focusing on network quality. However, T-Mobile and Sprint have been taking the market shares by offering unlimited data plan. Whether the move could bring back customers to Verizon is a question as Verizon’s new offer is still cost more than T-Mobile and Sprint.
“It offers a ‘fightback’ moment for the company,” Jennifer Fritzsche, an analyst at Wells Fargo Securities LLC, wrote in a note Monday. “With this move — it is very much back in the conversation.”