Millions expected to cut back cell phone costs in recession

19.03.2009

He noted that users who move to prepay plans are not getting rid of cell phones altogether. "The good news is there are options," Hepner said. However, he added, a new era of "penny-pinching is here."

Other data in the survey shows that of those who have discontinued cell phone service in the past six months, 28% live in households earning $35,000 or less. Of those likely to cut back if the economy gets worse, 44% are age 18-34, 54% live in households earning $35,000 annually or less, and 55% are African-American.

Overall, 80% of those surveyed still own a cell phone, while 84% of the 18-to-34-year-olds have at least one. Just 68% of those age 65 or older have a cell phone.

The survey found that 91% of households earning $100,000 or more have cell phones, while 65% of households earning $35,000 or less have them.

About 17% have a prepaid cell phone plan, while 84% have a contract-based cell phone. The overlap is due to individuals with both types of plan.