Talk is cheap(er)
Many Americans are now paying less for cellphone service.
Because so many adults already have smartphones — nearly 80 percent, according to the Pew Research Center — wireless carriers have been offering freebies and discounts to get people to switch.
Unlimited-data plans, which had largely gone away as the iPhone’s popularity increased data usage, are once again commonplace, freeing addicts of cat videos from penalties for exceeding data caps. Sprint has even been offering a year of free unlimited service to new customers.
Consumers’ wireless bills are dropping sharply. According to the Labor Department’s Consumer Price Index, service costs fell more than 12 percent in May from the year before, thanks in part to plans that offer more data.
What’s good for consumers isn’t necessarily good for phone companies. Telecom industry consultant Chetan Sharma says the industry saw its first quarter-to-quarter decline in 17 years, as revenue from selling data plans fell in the first three months of this year, compared with the previous three months.
To cope, telecoms are entering new businesses. AT&T bought DirecTV and has a deal pending for HBO and CNN owner Time Warner. Others are talking about hooking up with each other or cable companies.
How potential mergers will affect consumer wallets isn’t yet clear.