Talking Less, Paying More for Voice Essay

907 WordsAug 6, 20124 Pages
Talking Less, Paying More for Voice Topic: Wireless carriers in the United States are researching ways to continue to charge their customers higher prices for making phone calls. Introduction: Wireless customers are continually making fewer phone calls and using more data and texting to communicate. Carriers are looking for a way to move to unlimited-only calling plans to eliminate their customers option of trading down to cheaper plans with fewer minutes. AT&T Mobility Chief Executive said, “Especially as more people adopt smartphones that have voice capabilities over the Internet, segmented voice plans will become less relevant.” Phone calls are no longer the primary reason people buy mobile phones. Consumer habits are changing rapidly and the carriers are having a difficult time shifting their bill practices to keep up. Customers are figuring out that if they want to save money on their phone bills they simply need to scale back the minutes in their voice plans. The innovations of the smartphone make the need for voice plans even less. Everything is now at the customers fingertips. All of these shifts are being driven by the younger generation which uses texting as their primary way of communicating. Carriers are researching the best way to make a profit; whether they shift to billing off texting services or data plans. However, the shift seems to be going more toward data plans due to the slower growth in texting services. The slower growth is because customers are switching to free services like Apple’s iMessage instead of texting. Carriers have moved away from unlimited data plans in favor of tiered offerings that charge customers more money when they use more megabytes. These moves have proved to be successful with data revenue quickly increasing; the voice charges still pose to be a problem. Analysis: There are still people that

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