Mobile Tech Today

CIO Today Network Sites:   Top Tech News  |   CIO Today   |   Mobile Tech Today   |   Data Storage Today
News & Product Reviews for Mobile Tech Users
Eliminate costly downtime!
Find out how with Free White Paper
& enter to win a Samsung Galaxy Note

www.apc.com
Wednesday, April 23rd 
24/7/365 Network Uptime!
Trending Topics:   Security Heartbleed Big Data Cloud Computing Windows XP Data Centers OS X Mavericks
Home
Laptops & Tablets
Mobile Phones
Mobile Gadgets
Mobile Apps
BYOD & MDM
iPad
Mobile Industry News
Wireless Connectivity
Wireless Security
GPS & Maps
MTT Press Releases
 
Free Newsletters
Top CIO News
 
Mobile Tech Today
 

Wireless Connectivity

For Consumer Cellular Prices, Look Out Below!

For Consumer Cellular Prices, Look Out Below!
February 11, 2014 9:36AM

Bookmark and Share
A price war is brewing among wireless carriers, with AT&T firing the loudest show when it slashed the cost of its family data plans, a move aimed at stealing high-end customers from Verizon. But a small Internet-based upstart called FreedomPop has upped the ante on its giant rivals, offering unlimited voice and text plans for $4.58 a month.

APC has an established a reputation for solid products that virtually pay for themselves upon installation. Who has time to spend worrying about system downtime? APC makes it easy for you to focus on business growth instead of business downtime with reliable data center systems and IT solutions. Learn more here.

Mobile phone service in the U.S. looks headed down the same path as traditional land-line voice communication before it. It's dropping in price, thanks to the Internet, and the fall is accelerating.

AT&T fired the loudest shot in the brewing price war last week when it slashed the cost of its family data plans, a move aimed at stealing high-end customers from Verizon. The price cut came one month after No. 4 U.S. operator T-Mobile offered to cover the hefty fees consumers usually pay when they switch carriers before the end of a contract.

Yet the biggest disruption to the consumer cellular market may come from below, thanks to a small Internet-based upstart with eye-popping prices and an aggressive business plan.

FreedomPop -- which in October rolled out the novel combination of a low-end smartphone and free basic service for voice, text and data -- has upped the ante on its giant rivals.

Starting this month, it's also offering unlimited voice and text plans for $4.58 a month, a fraction of what larger carriers charge. What's more, FreedomPop is offering the service on higher-end phones. "We're declaring war on an industry that's taken advantage of consumers for too long," FreedomPop CEO Stephen Stokols says.

The company's service takes advantage of the fact that most mobile calls today travel over the Internet for at least part of their journey between callers.

Breaking voice calls into packets of data and sending them alongside other digital traffic over the big carriers' Internet-switch networks has dramatically lowered the operator's costs. But so far at least, the savings have been reaped mostly by the wireless giants rather than consumers.

That's why the fight between the two largest U.S. cellular carriers unnerved telecom investors, who sold off their shares and those of T-Mobile and No. 3 operator Sprint after AT&T's price cut.

An average plan that includes 500 MB of data costs $85 a month in the U.S., compared with $8.80 in the U.K. and $24.10 in China, according to the International Telecom Union.

Yet, as we told you here in October, FreedomPop is offering a comparable plan free, and it has cut the cost of a more robust plan targeted at higher-end smartphone users by more than half.

I've been testing the service, which runs over Sprint's network, for the past two weeks on a Samsung Galaxy 2 phone, alongside two other phones: an iPhone 3G running on AT&T's network and an iPhone 4S from Sprint. (continued...)

1  |  2  |  Next Page >

 

© 2014 USA TODAY syndicated under contract with NewsEdge. All rights reserved.

Tell Us What You Think
Comment:

Name:



 Wireless Connectivity
1. FireChat Ignites New Way To Talk
2. Will Google Offer a Wireless Service?
3. EU Panel Approves Net Neutrality Rules
4. Avaya Ends Network Waiting Game
5. HP Rolls Out New SDN Products




 Most Popular Articles
1. Google Glass Finds a Home in Medical Education, Practice
2. HP Rolls Out New Software-Defined Network Products
3. Smartphone Kill Switch Could Save Users $2.6B a Year
4. Avaya Aims To End Network Waiting Game
5. Google Video Shows Off Modular Project Ara Phone

 Related Topics  Latest News & Special Reports

  OnePlus One Boasts Android Weapon
  Samsung Gear Fit Geared for Exercise
  Google Sharpens Contact Lens Vision
  Samsung: $2.2B Too Much for Apple
  Review: Windows Phone Advances

 Technology Marketplace
Business Intelligence
Get real-time, cloud-based information services with Neustar.
 
Cloud Computing
Next Generation Data Center Is Here! Vblock™ Systems from VCE
 
Contact Centers
HP delivers the future of the contact center with HP Qfiniti 10.
 
Data Storage
Next Generation Data Center Is Here! Vblock™ Systems from VCE
Barium Ferrite (BaFe) is the future of tape.
2.5" Enterprise-class SATA & SAS SSDs for server & storage applications
 
Enterprise Hardware
Barium Ferrite (BaFe) is the future of tape.
2.5" Enterprise-class SATA & SAS SSDs for server & storage applications
 
Hardware
Protect your network with APC Smart-UPS battery backup
 
Network Security
Protect your network with APC Smart-UPS battery backup
 

Network Security Spotlight
What Verizon's Data Breach Report Can Teach Enterprises
It’s probably not a jaw-dropper, but cyberespionage is officially on the rise. And the use of stolen or misused credentials is still the leading way the bad guys gain access to corporate information.
 
Top Cyberthreats Exposed by Verizon Report
Beyond Heartbleed, there are cyberthreats vying to take down enterprise networks, corrupt smartphones, and wreak havoc on businesses. Verizon is exposing these threats in a new report.
 
Where Do Web Sites Stand, Post-Heartbleed?
A security firm says the vast majority of Web sites have patched themselves to protect against the Heartbleed bug, but now there are questions raised on the reliability of open-source programs.
 
Navigation
Mobile Tech Today
Home/Top News | Laptops & Tablets | Mobile Phones | Mobile Gadgets | Mobile Apps | BYOD & MDM | iPad
Mobile Industry News | Wireless Connectivity | Wireless Security | GPS & Maps | MTT Press Releases
Also visit these Enterprise Technology Sites
Top Tech News | CIO Today | Mobile Tech Today | Data Storage Today

Services:
FreeNewsFeed | Free Newsletters | XML/RSS Feed

About CIO Today Network | How To Contact Us | Article Reprints | Services for PR Pros (In partnership with NewsFactor) | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 Mobile Tech Today. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.