Billing wireless stays strangely complicated for U.S. companies
Tuesday, November 17th, 2009The monthly contracts that most Americans sign in order to receive cell phone service are widely varied. From high-fee, all-inclusive plans to incremental lower-fee options, the byzantine world of cell phone billing can be difficult to effectively navigate.
A report in the New York Times details the sheer breadth of options available to the American mobile phone user. Reporter Saul Hansell’s piece cites several examples of "weird" cell phone pricing effects, including the fact that iPhone sales shot up even after the monthly price of an internet subscription was raised, and the fact that discounts seem to actually encourage customers to switch to more expensive plans.
Hansell’s report reveals that one of the least important factors in setting cell phone price points is the actual cost of providing mobile service, contrary to the model present in most other industries. He equates the lack of specific knowledge about costs to the airline industry, but notes that the telecoms have much healthier profit margins.
The increasing prevalence of smart phones, which require data plans for the most important features, also complicates wireless bill management in the U.S.
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