Analyst: iPhone 3G users to benefit from wireless price war

The price war that has begun between T-Mobile USA and Sprint Nextel will ultimately benefit users of Apple's iPhone 3G if other carriers reduce prices on their data plans, an analyst has said.

Shaw Wu, a Kaufman Bros. analyst, said that Boost Mobile's $50 per month unlimited voice and data plan and T-Mobile USA's $50 unlimited voice and $25 per month unlimited data plan will boost sales of smartphones at all the carriers. In addition, he said that the price war will eventually force Verizon Wireless and AT&T Mobility, which is the exclusive U.S. carrier for the iPhone, to drop prices on their unlimited data plans. This, in turn, will increase pressure on the other wireless companies to cut their rates. "Overall," Wu said, "we view lower service plan prices as positive as it should help smartphone adoption maintain its healthy pace, even in this fragile economy."

Wu is predicting Apple to sell 3 million iPhones in its fiscal second quarter, which ends in March.

For more:
- see this article
- Video: Boost Mobile UnWronged Ad

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