Cell Phone Service Costs Increased in August; Econ One Survey Shows Average Costs Up in 23 of 25 Major Cities.Business Editors/High-Tech Writers LOS LOS Length of stay, see there ANGELES--(BUSINESS WIRE)--Oct. 5, 2000 Cell phone service costs reversed their downward trend in August, rising in 23 of the 25 major cities surveyed each month by Econ One, an economic research and consulting firm Noun 1. consulting firm - a firm of experts providing professional advice to an organization for a fee consulting company business firm, firm, house - the members of a business organization that owns or operates one or more establishments; "he worked for a which studies costs in the wireless industry. The average cost of monthly service, across four typical usage plans (30, 150, 300 and 600 minutes) was $40.90 in August, up 1.5 percent from July. The broad-based broad-based Of or relating to an index or average that provides a good representation of the overall market. The S&P 500 and NYSE Composite are generally regarded as broad-based stock indexes, while the popular Dow Jones Industrial Average is biased , though slight increase was in marked contrast to the findings of June and July's surveys, which showed decreases in 20 or more cities in both months. "While it is too early to determine if this reversal of consistent cost declines is the beginning of a new trend, it is not likely that costs will rise very much over the longer term," said Econ One senior economist Charles Mahla. "Again this month, the cost change to the consumer is not driven by actual per-minute rate changes, but rather by changes in incentive plans that effectively lower or raise the cost of service." The greatest increase in average costs was in Atlanta (up 9.2 percent, to $39.51), which had the lowest average in the July survey. The next largest increases were in Phoenix (up 5.5 percent), Detroit (up 3.0 percent) and St. Louis (up 2.1 percent.) "The increase in monthly cost was very modest in the majority of cities," Mahla said. "Only Atlanta and Phoenix saw cost movement of more than 5 percent, and those rises appear to be driven by only two carriers in each of those markets. In Atlanta, both Powertel and Sprint PCS (1) (Personal Communications Services) Refers to wireless services that emerged after the U.S. government auctioned commercial licenses in 1994 and 1995. This radio spectrum in the 1. had increases. In Phoenix, the monthly cost of plans from Alltel and Sprint PCS rose as well. However, in the case of Atlanta, there are five carriers and in Phoenix there are six. So consumers who shop wisely can still avoid cost increases in those cities," Mahla added. Only two of the 25 cities showed decreases in average costs in August: Dallas was down 3.4 percent and Houston dipped 2 percent. St. Louis had the highest average costs in the August survey, $44.90, topping San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden and Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. , which typically lead the pack. Seattle had the lowest average costs in August, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Econ One's survey -- $37.80 -- followed by Minneapolis, Portland and Denver. "This month's results further highlight the need for consumers to shop carefully," said Mahla. "If you are thinking about becoming a wireless user, or are thinking about changing your service, you have to do your homework on the various plan offerings in your area. From carrier to carrier or month to month, there can be a fairly wide swing in the monthly cost of service. Be on the lookout for in search of; looking for. See also: Lookout special incentives and minute 'giveaways', as these offerings can result in substantial savings." Those who wish to see Econ One's survey in detail, or who would like to be notified by e-mail of future survey results, may visit Econ One's Web site: www.wirelesssurvey.com About Econ One The Econ One Wireless Survey is published monthly by Econ One Research, Inc., an economic research and consulting firm with offices in Los Angeles and Sacramento. Econ One provides economic analysis and expert testimony Testimony about a scientific, technical, or professional issue given by a person qualified to testify because of familiarity with the subject or special training in the field. in many areas, including: antitrust Antitrust The antitrust laws apply to virtually all industries and to every level of business, including manufacturing, transportation, distribution, and marketing. They prohibit a variety of practices that restrain trade. , contract disputes, intellectual property and patent infringement patent infringement n. the manufacture and/or use of an invention or improvement for which someone else owns a patent issued by the government, without obtaining permission of the owner of the patent by contract, license or waiver. , regulation, and unfair competition. Industry specialties include telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. , energy, biotechnology, computer hardware and software, manufacturing, and financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. .
Average Monthly Charge for Wireless Service
Across 30, 150, 300, 600 Minutes of Use
August, 2000
No. City August Percent Change
Average Cost from July
1. St. Louis $44.90 +2.1
2. San Francisco $44.51 +1.0
3. Los Angeles $44.44 +1.4
4. Cincinnati $43.89 +1.4
5. Kansas City $43.40 +1.6
6. San Diego $43.09 +1.6
7. Detroit $41.80 +3.0
8. Cleveland $41.79 +1.6
9. Chicago $41.36 +0.7
10. Pittsburgh $41.31 +1.5
11. Dallas $41.04 -3.4
12. Tampa $40.74 +1.0
13. Boston $40.71 +1.1
14. New York $40.46 +1.6
15. Miami $40.40 +1.3
16. Philadelphia $40.39 +1.3
17. Washington, DC $39.79 +1.3
18. Atlanta $39.51 +9.2
19. Phoenix $38.99 +5.6
20. Houston $38.86 -2.0
21. Sacramento $38.35 +1.2
22. Denver $38.33 +0.8
23. Portland $38.33 +0.8
24. Minneapolis $38.33 +0.8
25. Seattle $37.80 +1.3
AVERAGE $40.90 +1.5
Source: Econ One Research, Inc. and providers' Web sites as of August 4, 2000 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion