announced that, effective Sunday June 26th, the price of the Go Phone prepaid unlimited plan is dropping from $60 per month to $50.
To make the deal even sweeter the plan now includes unlimited text and instant messaging to Mexico, Canada and 100 additional countries.
But it gets even better, for non-smartphones the $50 plan also includes unlimited data so you can browse, email and watch YouTube videos to your heart's content at no extra cost.
Smartphone users don't get any data at all included in the $50 plan. As before, they can purchase a Data Package at an additional $5/month for 5 MB, $15/month for 100MB or $25/month for 500 MB.
AT&T's price cut marks an escalation in the prepaid unlimited price wars and puts considerable price pressure on the other US carriers, especially Verizon and Sprint. For the same monthly cost as Sprint owned Boost Mobile, AT&T now offers better coverage, free international texts and IM and the ability to use any compatible phone. Verizon's unlimited prepaid monthly plan is a whopping $94.99/month and that doesn't include data. I predict AT&T's move will trigger a new round of cuts by other operators.
A big question about this plan is how AT&T defines a smartphone. Obviously the iPhone and current Android, WebOS and Windows Phone models are smartphones but what about older, possibly non-3G legacy Palm OS, Windows Mobile or Symbian phones? We will just have to wait and see for AT&T enforces the no unlimited data for smartphone rule.
As AT&T is now promoting the use of Android and Windows smartphones on prepaid I wonder if the carrier's long standing ban on using iPhones on prepaid (although there are workarounds) is finally gone? After all the iPhone is the most popular smartphone by far so it seems strange to discriminate against it.