A note on methodology: TRAC’s local phone plan survey takes in to account the prices for monthly service, the federal subscriber line charge, and the two most popular calling options – Caller ID and call waiting. Note that some local phone service plans are only offered as a bundle with long distance service, which skews the total cost comparison somewhat. TRAC’s survey covered plans being offered in a variety of local service areas. Plans surveyed may not be available in every area of the state

* Average of nationwide cable modem prices as defined by Kagan Research - 7/6/06.

New Option Allows Verizon Wireless Subscribers to Customize Plans - Verizon Wireless subscribers trying to find the plan that best meets their calling patterns got some welcome news from the company this week. Starting October 7, subscribers will have the option to change their service plans in mid-contract without extending for an additional 1-2 year commitment. What makes this innovative is that it applies even if customers decide to eliminate unneeded calling features or switch to a cheaper monthly plan with fewer minutes. Alltel Wireless is the only other major national carrier to offer a similar perk to its users. A useful tool for consumers to keep an eye on their actual usage is the company’s “Minute Check” service, which notifies subscribers when they exceed their monthly minute allowance and suggests other calling plan options that could save users money. While “Minute Check” doesn’t help users who habitually use fewer minutes than are in their plan, it may help users who frequently get hit with overages. In summary, the new policy regarding plan changes without service contract extension is another reason for consumers to keep a close eye on their wireless bills. Remember, even though a plan has hundreds of “included” minutes, these minute are not free. Unused minutes are minutes that subscribers pay for whether they are used or not. Therefore, it is in consumers’ best interest to choose a plan that meets their calling patterns without going over. A good rule of thumb is that if you find you are leaving more than 100 minutes unused every month, it may be a good idea to search around for a cheaper plan with fewer minutes. To read more about the new Verizon Wireless policy, click here.

Virgin Mobile’s “Sugar Mama” Giving Out Free Minutes - Wireless provider Virgin Mobile has hit upon an intriguing way to get its users to help it boost its advertising revenue. The company’s “Sugar Mama” service offers subscribers free minutes for reading or watching advertisements and offering feedback. The service works in two ways. The first, “Sugar Mama Online” offers subscribers one free minute of airtime for every minute they spend watching 30-second online advertisements and rating them. Five minutes of airtime can be had by filling out a survey. The second way the service works is via “Sugar Mama Mobile.” Users receive text or picture messages prompting them to follow certain instructions to get minutes. For every two activities completed, users get one minute of free airtime. All messages sent or received with “Sugar Mama Mobile” are free of charge. Users can gain a maximum of 75 minutes per month with “Sugar Mama.” Also, most Virgin Mobile plans require subscribers to “top up” (i.e. buy more airtime) at least $20 every 90 days. “Sugar Mama” minutes do not count towards the “Top-Up” requirement. Note that to use the service, subscribers will have to provide some personal information including age, gender, and zip code. Virgin Mobile does reserve the right to share your information with other firms. For more information on Virgin Mobile’s privacy policy, click here. “Sugar Mama” will be most useful to those with more time than money to pay for their airtime use, particularly if they are nearing their airtime limit for the month and want to avoid paying overage charges. For more information on “Sugar Mama,” click here.

TRAC IN THE NEWS

Cell Phones and VoIP Could Make Relics of Landlines, Says TRAC s - The inevitable march of technological progress in the telecommunications industry will likely make the old-fashioned copper wire-based landline telephone a thing of the past, according to a recent article in the Tulsa World. The explosion in wireless phone use coupled with the increasing reliability and low cost of VoIP calling has forever altered the telecom landscape. "Lots of people bought a second landline connection for dial-up Internet, but with a broadband connection they don't need a second line" since broadband provides simultaneous voice and Internet capabilities, said TRAC Research Associate John Breyault. A recent study indicated that that number of cellular-only households in the United States has surpassed the number of landline-only households in the U.S. Ten years ago, in the wake of the landmark 1996 Telecommunications Act, such a statistic would have been unthinkable. According to the study – released by market research firm Mediamark – the number of landline-only U.S. households now stands at 12.3%. By comparison, the percentage of households with only wireless phones is now 14.4%. This trend, towards cellular-only living is being driven by the young. "Fifty-seven percent of 18-24 year-olds who live in single-person households are now cell-only, making them more than four times as likely to be cell-only as the average adult," the study found. To read the full Tulsa World article, click here.

INTERESTING LINKS

FCC Main Page: http://www.fcc.gov

FCC Complaint Form - http://svartifoss2.fcc.gov/cib/fcc475.cfm

List of State Regulatory Commissions: http://www.naruc.org/displaycommon.cfm?an=15

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