SEPTEMBER 13, 2010, 6:24 P.M. ET.

Wal-Mart to Offer Cell Plan Without Contract

By SHAYNDI RAICE

Wal-Mart Stores Inc. will offer a cellphone plan under its own brand, a move that the company hopes will bolster its position as a low-cost provider of wireless services.

Wal-Mart already offers cellphone plans through all the major U.S. carriers, including AT&T Inc., Verizon Wireless, Sprint Nextel Corp. and T-Mobile USA. The Wal-Mart Family Mobile Plan, which runs on T-Mobile USA's network, will offer a range of low-priced cellphones without a lengthy contract for a flat monthly fee. The plan will be available starting September 20.

Consumers will be charged $45 at the end of each month for unlimited calling and texting. Each additional phone line is $25 a month. Data will be sold in buckets rather than monthly. The first 100 megabytes are free, and more can be bought at a cost of $10 for 200 megabytes, $25 for 500 megabytes or $40 for 1,000 megabytes.

"It signals to customers that this is a high quality offering that has the support of a national wireless carrier," said Ravi Jariwala, a Wal-Mart spokesperson. "At the same time, with the Wal-Mart name in there, it says that this offering is going to be of extremely compelling value."

Unlike most postpaid plans, where customers must commit to a long-term contract in order to qualify for a subsidized handset, the Wal-Mart plan offers low-cost phones without any subsidies.

Jim Alling, chief operations officer for T-Mobile USA, said the two companies were able to use their market clout with device makers to get lower prices.

"We came up with the ability to leverage each others strengths," said Mr. Alling. "Walmart is great at purchasing. We have relationships with the device providers."

The plan allows customers to choose from a range of handset devices, including the Motorola Clique XT for $249, to the Nokia 1661 for $34.96. The Motorola Clique XT is currently the only smartphone offered through the plan, but Mr. Alling said new devices will be rolled out in the future.
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