US Cell Phone Costs Fall

The cost of using a cell phone in the USA declined by nearly 2% in June, according to Econ One, an economic research and consulting firm, which studies the cost of wireless service. The Econ One Research wireless cost index, which measures the average cost of wireless service in the top 25 US markets based on four typical levels of use declined $0.70 in June - a 1.9% decline over the reported cost of wireless service in May.

In addition to its regular wireless voice services survey, the company conducted a pricing survey of data plans and other special features currently available in the top 25 markets. The survey focused on the availability and pricing of features such as text messaging, wireless web browsing, ring tones and graphics, games, and mobile IP. A report entitled Anything But Talk on Your Wireless Phone summarizing the results will be available late July.

In June the cost of voice services increased only in 1 of the top 25 markets and declined in the remaining 24 markets. Cincinnati was the highest cost market in June. Washington D.C. was second, followed by Kansas City, Phoenix and New York. Sacramento was the lowest cost market, followed by San Francisco, Miami, Cleveland, and Chicago.

The only cost increase in June occurred in Phoenix (0.7%). In that market, Verizon eliminated certain competitively priced plans, which resulted in higher cost of service in the 200 and 800 levels of use, while AT&T and T-mobile both lowered the cost of their service in the 500 and 800 bucket respectively. The cost of service declined the most in St. Louis (-4.1%), Pittsburgh (-3.4%), Miami (-3.3%), and Tampa, Houston and Dallas (-3.2%)."

Posted to the site on 23rd July 2003