Tough macroeconomic conditions are causing wireless carriers like Sprint and T-Mobile to become more aggressive with pricing of their monthly service plans, a move which could ultimately help drive down the cost of owning an iPhone. Yes, we’ve said this in a few others reports recently, but it could really happen in the very near future, if the latest Best Buy pricing tactic is any sign of things to come.
In a report published Monday, Kaufman Bros analyst Shaw Wu compared the trend to that of DSL and broadband pricing, which has fallen considerably over the past 3-4 years.
“It used to cost $50 per month for access and now there are many plans for $15-$20 per month as well as faster tiered pricing. Customer adoption of broadband accelerated as pricing dropped.” Not a surprise, of course.
While top tier providers AT&T and Verizon have yet to follow their smaller rivals with similar reductions, Wu thinks it may be only a matter of time before they do, or at least consider implementing several more tiers of internet data pricing. With unemployment and economic numbers not expected to improve in most of this year, pricing reductions may have to happen for growth to continue.
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