Verizon has decided Sprint is worth competing with again, so the nation’s largest wireless carrier has started testing unlimited calling plans that deliver Verizon’s network at Sprint’s prices.

So far the unlimited plans are only available in two markets – Los Angeles and San Diego, and represents a $20 discount off regular monthly pricing:

The $99.99 price is no coincidence. That happens to match pricing for Sprint’s Simply Everything and T-Mobile’s Individual Talk + Text + Web plans which both sell for $99.99 per month.

Verizon’s price cut experiment may be a reaction to Sprint’s new marketing that stresses it will not usage cap smartphone customers, and charges a lower price for more services.

Most Verizon customers in the two California cities will learn about the new pricing in Verizon retail outlets and through the company’s website.

Although the new pricing seems attractive, there is a mass of fine print which may temper your enthusiasm:

1. The lower pricing is only good for Individual plans.  You cannot get the savings on a Family Plan.
2. No monthly access discounts, available through many employers, are permitted.
3. There is a $35 activation fee.
4. Tolls, taxes, surcharges and other fees, such as E911 and gross receipt charges, vary by market and as of August 1, 2010, add between 5% and 39% to your monthly bill and are in addition to your monthly access fees and airtime charges.
5. Monthly Federal Universal Service Charge on interstate & international telecom charges (varies quarterly based on FCC rate) is 13.6% per line.
6. The Verizon Wireless monthly Regulatory Charge (subject to change) is 13¢ per line.
7. Monthly Administrative Charge (subject to change) is 83¢ per line.

Thanks to Stop the Cap! reader Scott for the news tip.