U.S. Cellular introduces new service plan with 5 GB data use for $70

Building on to its Belief Project loyalty program, U.S. Cellular Corp. (USM) introduced a smart-phone service plan aimed at heavy data users who consume fewer voice minutes. The carrier’s $69.99 Primary Plus Plan includes 5 Gigabytes of data; unlimited messaging; and free GPS Navigation, with 450 voice minutes. All incoming calls are free, as are nights and weekend calls and all mobile-to-mobile calls.
The plan is comparable to Sprint Nextel Corp.’s (S) Simply Everything plan, which offers unlimited data use, for the same price, and is cheaper than comparable offerings at Verizon Wireless (VZ) and AT&T Mobility (T). For example, Verizon Wireless offers 450 voice minutes with unlimited messaging, but only 150 megabytes of data for roughly $75.
Alan Ferber, EVP of operations at U.S. Cellular, said most of U.S. Cellular’s customers consume less than 5 GB of data per month so the operator felt comfortable with the cap. “For the vast majority of our customers, 5 GB is more than enough.”
U.S. Cellular introduced its Belief plans a month ago. The plans lowered prices, and include a loyalty program. Perhaps the most differentiated aspect of the initiative is what U.S. Cellular is calling its “One and Done” contracts, which do not require customers to sign new contracts once their initial two-year agreement is completed, but still allow customers to get fully subsidized device upgrades at least every 18 months. Customers also can collect “Belief Points,” allowing them to upgrade earlier, among other things.
Ferber said the plans are exceeding the company’s expectations. “The biggest frustration for our customers, for all customers, is having to sign continuous contracts just to stay with their carrier,” Ferber said.
The company plans to have 14 smart phones for sale by the end of the year, Ferber said, including Samsung Telecommunication America’s Galaxy Tab device. The operator’s device lineup includes smart phones using Google Inc.’s Android operating system, Research In Motion Ltd.’s BlackBerry OS and Microsoft Corp.’s Windows Mobile OS.