AT&T, T-Mobile roll out flat-rate plans similar to Verizon's

NEW YORK -- Sprint probably won't stay there long, predicts Roger Entner, a senior vice president at IAG Research.

"I think the likely outcome is that Sprint comes out with an unlimited plan that is (priced) slightly below" the others, Entner said.

In a recent interview with USA TODAY, Sprint Nextel CEO Dan Hesse said he is considering an unlimited plan, though details are still being worked out as to how such a plan might be structured.

On Tuesday, Sprint spokeswoman Leigh Horner said the company is continuing to evaluate rate plans but declined to elaborate.

Horner said Sprint is testing two unlimited plans in a handful of markets, including San Francisco and Tampa. In those trials, Sprint is offering unlimited domestic voice, text and messaging for $119.99; another plan that also offers mobile broadband is $149.99 a month.

Verizon's plan, unveiled Tuesday, marks a dramatic turn for the U.S. wireless industry, which has historically sold consumers big "buckets" of monthly minutes for a set price.

Part of the industry's affinity for buckets owes to the fees companies take in from customers who exceed their monthly allotments. Those "overage" charges generate billions in profit each year.

Now that the bucket has been tossed for high-end customers willing to spend $100 a month or more on wireless, value-priced variations may not be far behind.

And that could be very good news for consumers, Entner says. Unlimited plans "are a really good deal," he says, particularly for people who dump landline phones.

But price wars aren't so good for wireless carriers, which enjoy big profit margins and, as a result, legions of supporters on Wall Street.

Concerned that a price war might be brewing, investors on Tuesday pummeled the stocks of AT&T, Verizon and Sprint.

Verizon, the parent of Verizon Wireless, which isn't separately traded, fell 6.6% to $35.34. AT&T, whose wireless business also is not separately traded, saw its shares slide 5.3% to $35.89.