AT&T means business. The nation’s second largest U.S. wireless carrier has offered families a plan that lets them use a great deal of data, and yet could save them anywhere from $40 to $100 per month on phone service. This of course depends on their existing plan and service provider.

Under AT&T’s newest service plan, a family with four smartphones can purchase unlimited talk, unlimited text and 10GB of data, all for $160 per month. Under the previous plan this package would have cost $200. A similar plan is also extended to small businesses with up to ten lines.

But this isn’t just about pleasing customers already with AT&T. Those sharing 10GB or more will automatically be upgraded to the newer and cheaper service.

David Christopher, the chief marketing officer for AT&T Mobility, says this move, “is about being competitive.”

A major component of the price drop and advertising is that it’s targeted at the customers of the carrier’s major rivals.

For instant Verizon Wireless has a very similar plan available, but thanks to AT&T’s price cut, the rival’s $260 per month plan is going to look particularly steep. The logical thought becomes, “Why should I pay Verizon for service I can get elsewhere for $100 less?”

Meanwhile T-Mobile has been engaging in a back and forth with AT&T over the more affordable coverage with the most benefits through targeted ads. Right now, their big selling point is the “no contract” option.

Says Christopher, “We’re making it easy for families who want it all – great service, great value and big bucket of data to share.”

He also says that the plans are about giving the customers exactly what they want; AT&T’s “best-ever prices on a best-in-class network.”

4 devices, 10GB + unlimited talk and text, $160 per month with AT&T vs $260 with Verizon. http://t.co/BMwhBg1F1R pic.twitter.com/7ELFYeE8xQ

— AT&T (@ATT) February 1, 2014

This is AT&T’s method of throwing down the gauntlet. The pricing is going to make it extremely hard for certain other companies to continue to justify their higher prices without improvements in service.

This could be the beginning of a series of deals and slashed prices that could benefit the customers of all these networks greatly in the coming months.

Image via AT&T’s Official Facebook