NYT: Cell Phone Pricing

November 17th, 2009 by Adam Somer Leave a reply »
  • When Apple and AT&T started offering the iPhone for $199, plus $30 a month for Internet access, sales shot up, even though the previous deal — $399 for the phone and $20 a month — cost less over a two-year contract.
  • Phone companies have doubled the price for text messages, to 20 cents each, in recent years, even though they cost almost nothing to deliver.
  • When companies introduce certain discounts — like Sprint’s recent offer of free calling to any mobile number — the effect is that customers often switch to more expensive plans.
  • On average, we effectively spend about 5 cents per minute of talk time and about a penny a text message, lower than anywhere else in the developed world.
  • In the first half of this year, the average wireless customer sent 518 texts a month and made 220 phone calls, according to CTIA figures.

From: http://www.nytimes.com/2009/11/15/business/15price.html?_r=2

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