How does $99 compare to other, older plans and why would someone want to buy/upgrade to a $99 plan?
If you use more than 2000 minutes, then it compares favorably (Sprint’s 2000 anytime minute plan is $99). Also, if you spend $30/mo on a landline phone with unlimited minutes plus say, $60/mo on a cell phone, this deal becomes pretty sweet.
The real power of the $99 “unlimited” plan is its simplicity. 2000 minutes sounds like a lot and scares people. “There is no way I will use 2000 minutes a month.” However, unlimited minutes might sound like a sane investment. You never know how many minutes you will use. Why not buy the unlimited plan, for a reasonable price, and protect myself. It is simple. There are no hassles. Just talk.
Also, keep in mind that people sometimes find that when they have an unlimited amount of something, they want to use that thing all the time. The same goes for minutes. Let’s say that friend X decides to buy the $99 plan from Verizon. Suddenly, that friend can talk to anyone in the US, anytime. He/she starts calling all of their friends all the time. He tells everyone how great it is. Now I want the same plan so that I can talk nonstop (or, were I younger, I would beg my parents for the plan…”but mooom, Johnny’s parents bought him the unlimited plan, why can’t I have it, as well…”).
You can’t talk on the phone all the time but buying an unlimited plan might mean canceling your landline phone. Now you can anytime, anywhere, for one flat rate price. Not bad.