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LEAP, PCS Slide as Wal-Mart Offers Cheap Prepaid Wireless Plans

October 14, 2009
by Eric Savitz
Blogger and Columnist, Barron's, Tech Trader Daily

Eric Savitz

The already intensively competitive wireless sector today finds itself with a tough new player: Wal-Mart (WMT). The retailing giant has teamed up with American Movil (AMX) to sell low-cost service under the Straight Talk brand. The company is offering unlimited voice and text minutes for $45 a month, or 1,000 minutes and 1,000 text messages for $30 a month.

WMT is rolling out the plans nationwide after previously testing service via 234 stores, according to Reuters.

This is something of a nightmare for the pure-play pre-paid wireless companies, including MetroPCS (PCS) and Leap Wireless (LEAP), which just a few days ago found themselves facing the prospect of AT&T (T) jumping into the pre-paid market.

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