My phone bills have gone up!

27 Sep 2005|Leigh Marinner

It’s true that the telecos are rapidly cutting prices faced with new competition from cell phones and VoIP. But when I look at my historical Quicken budget for telephone services, I was spending a lot less four years ago. Instead of spending $70/month on a landline phone, I’m now spending $20/month on a landline including all long distance calls, but I’ve added $100+/month for my cell phone, not counting the data services which I’m about to add.

There is cause for hope as competition puts pricing pressure on the mobile operators. Right now, mobile operators charge 3-5 times as much as fixed operators per minute. As dual function mobile VoIP/wireless phones become a reality, travelers will use WiFi connections in airports and hotels to make free or low cost calls over the internet. Phones which can switch seamlessly between the mobile wireless network and VoIP calls on the internet will even allow users on the move to switch the call to the internet when in range of a WiMAX or WiFi site. In addition, the mobile operator’s new 3G wireless networks which offer high-speed internet connection will bring pricing pressure to bear as customers are able to place calls at lower data rates.

So maybe I’ll be back to paying $70/month in a couple years. Not counting the kid’s cell phones.

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