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Data bundles will help lower cell plans

Verizon logo displayed on a building in New York City.

TEXT OF STORY

Steve Chiotakis: Last week, Verizon lowered the price of some of its wireless voice plans. Its biggest competitor, AT&T, jumped in with cuts of its own. So it may look like just another price war, but Marketplace's Gregory Warner reports its much more than that.


Gregory Warner: Cell phone customers cheered over the weekend at news that some carriers were lowering the price of their monthly voice plans. Telecom analyst Jeff Kagan expects those prices to keep falling.

Jeff Kagan: Over the next few months and over the next few years, I think prices are going to continue to get lower, but its going to be bundled with voice and data services.

Starting today, Verizon will require customers who buy a multimedia phone to buy an unlimited data plan along with it.

Analyst Mark Donovan says that so-called all-you-can-eat data plans encourage customers to try out the fancier features on their phone.

Mark Donovan: To pull the browser up on their phone. to download an app, and not be afraid that they're going to be unexpected charges that show up on the bill.

Donovan says unlimited data plans are intended to bring in more customers and keep them on their smart phones longer.

In Philadelphia, I'm Gregory Warner for Marketplace.

About the author

Gregory Warner is a senior reporter covering the economics and business of healthcare for the entire Marketplace portfolio.

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