Millions expected to cut back cell phone costs in recession

19.03.2009

Allen Hepner, a scholar at the NMRC, said the survey also shows that consumers will move from monthly cell phone plans to prepaid plans as a result of the downturn. He described four prepaid plans that were far less costly than monthly plans, putting them more in the reach of lower-income Americans. "Consumers are looking for savings," he said.

Hepner would not say whether the NMRC receives funding from prepaid carriers, saying that the group's donors are kept anonymous. He did say that some of the donors are telecommunications companies. Many carriers offer both prepaid and monthly subscription plans.

Citing the cellular phone industry group CTIA, Hepner said that monthly phone service costs the average consumer US$60 per month, while several prepay plans can bring the costs down to $20 per month or even $20 for three months, with a wide range of maximum minutes. Still, he acknowledged that "prepay is not for everyone" and urged consumers to "get the plan that's right for them."

Even though Hepner cited several reasons consumers might consider prepaid phone usage, he said the NMRC is not planning to use the survey data to support a political agenda or marketing campaign. "It's phenomenally neutral," Hepner said, "showing just how the American people feel today." He said that the NMRC will use this survey as the first in a series of annual surveys on cell phone usage.

"There always will be people who use statistics to buoy a position or use it to damage an opponent, but that's not the intent," Hepner said.