How Cell Carriers ‘Reduced Cost’ Plans May Cost You More

February 11, 2010

(ChattahBox) – CNN Money released a story this week that shows you may not be getting the low price you thought on your slashed cell phone packages.

Both Verizon and AT&T have cut their prices nearly in half in a move to meet the competitive prices of T-Mobile, or budget carriers like Cricket.

This puts both between $60 and $70 per month for their 500 minute plans.

Sprint recently released news of an unlimited call plan for $60 a month as well, showing that the prices are now meeting demand and lowering to keep customers happy.

But are your bills really going to go down?

While call plans are going down, data plans are going up, both for smartphones and regular cell phones.

Data plans are coming with monthly fees of around $10 or more, bridging the gap made by lowered phone costs.

“There’s a big shift going on among mobile companies, in which there is a price reduction on voice and an increased emphasis on selling and requiring data services. It is like a dirty little secret,” Dan Hays or PRTM explains.

This is a slight shift in the program, where formerly only smartphone users had to pay high prices for data usage.

“Non-smartphone users aren’t using as much data as smartphone users, but they’re getting closer,” said Ramon Lamas of IDC told CNN.

“Carriers see them as a breeding ground for increased data usage.”

Source


Comments

One Response to “How Cell Carriers ‘Reduced Cost’ Plans May Cost You More”

  1. SimonC on February 27th, 2010 10:26 am

    Dirty little secret indeed!
    But even so the reduced rate of $70 for unlimited chat is not all that special either. I use the Straight Talk prepaid service – $45 for unlimited everything. It’s much less than Verizon charges for unlimited voice only but get this: Straight Talk actually uses Verizon’s network! Another dirty little secret!

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