Smartphone Data Plans

[JourneyOfLife]

A few years ago (2011), AT&T was going to purchase Tmobile. The deal was canceled because the deal was challenged by the Justice Department based on concerns less competition would cause customers to pay higher prices and less innovation.


Look at this article.

How many think that AT&T would be reducing prices if they had bought out Tmobile?


CNN Article:
Data caps are "just this side of extortion," said John Legere, president and CEO of T-Mobile. "It's like getting your data from the neighborhood loan shark and paying 100% interest when the bill comes due. It's the classic shakedown," he said.


AT&T cuts prices again (http://money.cnn.com/2014/03/09/technology/mobile/att-price-cut/index.html?iid=HP_LN)


Now Comcast is executing a similar type of plan ... just eliminate the competition (time warner). While the companies may be different from phone companies, I have no doubt the merger will not lead to lower prices for consumers.

Comcast is testing data caps in several areas on their cable based internet connections.

[gomoho]

I am currently looking at changing my plan - have 4 lines and smartphones on each one. I have been with Verizon forever, but ATT can offer me a better plan for about $100 a month less. So what is up with that??? Called Verizon and was put through to their loyalty department and they said they just can't meet those prices. Not sure which way I'm going with this, but I believe there is a price war unfolding with these companies to gain our business. Competition is tough and it should be.

[renrod]

If you are shopping for service and everyone should be, check out Consumer Cellular.
www.consumercellular.com
They use ATT towers and the cost is about 1/2 of ATT with NO CONTRACT.

[Mudder]

Straight Talk is excellent and no contract at all. They use either ATT or Verizon towers. No need to be locked in for years now. Unlimited talk, text, data.

[JB in TV]

Straight Talk is excellent and no contract at all. They use either ATT or Verizon towers. No need to be locked in for years now. Unlimited talk, text, data.

How does that work if you are traveling? Do you have to be in your home area?

[redwitch]

I love Straight Talk. Had been with Verizon for over 15 years. Switched to Straight Talk. There are no roaming fees. There is a continental U.S. plan for $45/mo and an international plan for $65/mo.

[gomoho]

So it seems at least with cell phones competition is working as far as helping the consumer.

[Avista]

It use AIO.. Uses ATT towers and much less expensive. Consumer reports recommended.

[JourneyOfLife]

Sprint Chairman Says He Wants to Buy T-Mobile - WSJ.com (http://online.wsj.com/news/articles/SB10001424052702304020104579431811788250936?mg=ren o64-wsj&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB1000 1424052702304020104579431811788250936.html)



Here we go again. That would go from 4 major players to 3! There are many M&A plans out there that end up with one outcome: You Lose!

IMO, there are so few phone companies that more consolidation just lands up back in the territory of where we started. One Big AT&T that either requires heavy regulation like a utility company of a Monopoly. Oligopolies with 2 or 3 dominant players is essentially a monopoly with the strategy of (Wink and nod) follow the leader on prices and don't rock the boat.

It actually is good to have a couple of smaller wannabes that seek growth organically (their own marketing plans) instead of industry consolidation. It keeps prices competitive and increases innovation as they seek ways to grow through competition.

Look at this list of companies and their subscribers. 4 very large companies and some small marginal nobodies.

List of mobile network operators of the Americas - Wikipedia, the free encyclopedia (http://en.wikipedia.org/wiki/List_of_mobile_network_operators_of_the_Americas#U nited_States)


Cricket and all those services just piggyback and resell from the "Big Companies".. They are just resellers. Plus AT&T is buying Cricket!!!! As a competitive move to acquire one of Sprint's independent distributors!

Cricket Wireless - Wikipedia, the free encyclopedia (http://en.wikipedia.org/wiki/Cricket_Wireless)


I hope the Feds stop these acquisitions and mergers!

I also hope congress does not sell out and stick it to consumers (their voters). My guess is that any hearings in the house will just be a sham to fool voters and to have a cover story for selling out when they campaign. The real reason will be campaign contributions and untraceable perks and perhaps a job or seat on the board when they retire from congress.



BTW, Phone services is a massive part of consumers' monthly bills. It is not uncommon to see a small family with near a $200/mo phone bill. A couple can easily have a $100/mo phone bill if they use data services.


Internet and mobile communications is rapidly becoming intertwined into every aspect of our lives. It will cease being a convenience soon and become a necessity that requires a large cost to participate in consumer activity like purchases and transactions and other seemingly unrelated activities.

[sailor47]

Internet and mobile communications is rapidly becoming intertwined into every aspect of our lives. It will cease being a convenience soon and become a necessity that requires a large cost to participate in consumer activity like purchases and transactions and other seemingly unrelated activities.[/QUOTE]

I agree...Just don't get trapped. It is not a necessity to have all these data plans and smart phones.

We use Consumer Cellular and have two lines for $44 per month. Right now we are only buying the 500 monthly minutes and a really small data plan. It works for us as most of our long winded calls are made on Ooma ($3.75/month). The plan has no contract so we can go up in minutes. For $10.00 more we can up our minutes to 1000. We used one older ATT phone and bought a new smart phone from Consumer for $65.00. The old ATT was free as it was from a plan we were in 5 years ago.
Hey they are just for making phone calls...Right. It is for us. $44.00 per month!!

[JourneyOfLife]

You don't understand how the phone companies are structured.

My point was about industry consolidation. There are only 4 big operators with nationwide infrastructure... if the Sprint deal goes through there will be 3 big operators.

Fewer real nationwide cellular companies means all cellular prices will rise!

Consumer Cellular really just rebrands and resells AT&T's infrastucture services. They are a brand, a store front (web too) with a a little back office support. Depending on their deal with AT&T, billing, help line, etc... could be AT&T. You would not know it.

If someone using an small MVNO calls for help.. the call center rep will see who the MVNO is and respond "Hello, Joe Blow Cellular... may I help you?"

If you did your homework you would find the unit charge (per minute within a banded tier) is close to the same as AT&T. They just slice the minute plans a little differently (terms). IOW, less cost via less use! On an apples to apples basis, one might save a couple of bucks.

Do you think AT&T is going to let any competitor, reselling AT&T minutes, have a real competitive advantage on price?

https://en.wikipedia.org/wiki/Consumer_Cellular



The only reason an MVNO is allowed to exist is it keeps the justice department off the backs of the oligopoly (the 4 big phone companies.. actually 2 really big phone companies and 2 smaller ones).

There are also some regional networks that have local infrastructure (i.e, towers in a city or metro area only), the complete their nationwide network by using a similar agreement with the 4 larger nationwide companies (piggyback on their nationwide network). IOW, their nationwide networks are MVNO-ish.


Wikipedia - Mobile virtual network operator (https://en.wikipedia.org/wiki/Mobile_virtual_network_operator)

[rp001]

I believe AT&T has been forced to divest three separate times. This doesn't say much for competition but one can hope. I have Sprint and consider it to be just average as far as service is concerned.

[mikeandnancy1112]

Straight Talk is great...best reception and price!. We have had this for two years now.

[Midvale]

I have been with Virgin Mobile for 4-5 years. It's Sprint's stepchild and runs on their network. Data speeds are generally slower than Sprint's (Sprint customers get served first) and there is no roaming. I get a laugh from their website that advertises "No roaming fees!". So if you can't pick up the Sprint network you have NO coverage.

However I'm grandfathered in at just $25/month, no contract for 300 talk minutes/ unlimited texts/2.5GB high speed data.

The same plan is still available for $35/month now and if you auto-pay it is $30/month.