Pricing

Cox Raising Broadband Pricing

Bernie — Fri, 11 Jul 2008 10:24:17 -0400

Cox is apparently ignoring the recent Pew Internet research results which suggested that broadband pricing is still too high. According to BroadbandReports.com, Cox is raising their broadband pricing for many of their broadband tiers in several markets. Apparently, their "economy" tier will rise to $19.95 from $16.95 and their "value" tier to $29.95 from $26.95. Their “preferred” and “premiere” tiers are also rising to $44.95 and $59.95 respectively. These identified prices include bundle discounts for taking video. The Pew Research Center recently released their 2008 Home Broadband Adoption Study, in which one of the finding suggested that high prices for broadband is impeding higher broadband penetration rates for the U.S. The Pew results indicate growth in broadband penetration is relatively flat and “35% of dial-up users say that the price of broadband service would have to fall,” in order for them to give up dial up for broadband.

Of course that’s one opinion in the broadband pricing debate. Broadband carriers tend to have a different perspective, especially as the appetite for bandwidth continues to climb. Satisfying that growing subscriber appetite, while also holding the line on price is a challenge, they say. If the trend continues where broadband consumption continues to grow at a rapid pace, and there’s no indication it won’t, broadband carriers will continue to explore raising prices. Maybe even at the expense of slowing penetration growth. How are you coping with finding the right balance between price and penetration?

Sprint Offers New Pricing Plans

Bernie — Thu, 12 Jun 2008 19:55:33 -0400

Sprint introduced a new pricing plan that it hopes simplifies its wireless plans. The new pricing plans build on their Simply Everything $99/month plan. They offer a variety of service options, which include voice only, voice with messaging, and voice with messaging and data. Subscribers select an 1) individual or family option; 2) the aforementioned service option; and 3) the total number of monthly minutes to arrive at their monthly price. Depending on options selected the monthly fees range in price from $39.99 to $99.99.

T-Mobile Ups the Ante

Bernie — Thu, 21 Feb 2008 11:50:05 -0500

T-Mobile joined the wireless unlimited calling party this week, but is now upping the ante with landline calling as well. Their new Talk Forever service complements their recently launched Hotspot@Home service, and provides unlimited domestic calling for $10/month. The new service will only be available in Dallas and Seattle for now. Hotspot@Home routes cell phone calls over the customer’s home Wi-Fi network, removing the minutes associated with that call from their wireless bucket of minutes, for an extra $10/month. The new Talk Forever is essentially a pure play VoIP service, similar to Vonage, where customers utilize traditional landline phones. So T-Mobile customers can now use their wireless or landline phone and get unlimited domestic calling for $10/month each (or $20 total). T-Mobile customers must subscribe to a $40/month plan to qualify for Talk Forever or Hotspot@Home, meaning customers would have a minimum bill of $60/month if they subscribe to both services. They also need to buy a compatible home router for $49.

This T-Mobile development is a clear move to encourage customers to give up traditional landline telephone service. With a wireless and broadband subscription, customers will now have unlimited calling from their home, and only use wireless minutes outside the home. I suspect as both this new plan from T-Mobile, as well as the multiple unlimited wireless plans announced this week begin to take hold, a fair percentage of consumers will question whether they need a landline phone. As Joe Sims, T-Mobile’s broadband products vice president and general manager, said in an interview with Wi-Fi Net News, “[we’re looking] to address the remaining reasons people were reluctant to cut the cord.”

After all of the activity this week, you have to wonder whether these communications conglomerates have well defined strategies, or are they winging it to see what sticks. My guess is a little of both. Does anyone really know the long term impact of these new plans, and whether they will provide enough margins for these carriers to continue them? Or is this just a “land grab” to shake out competitors, and then the market adjusts with fewer players?

‘Tis the Season for Unlimited

Bernie — Wed, 20 Feb 2008 14:34:50 -0500

Both Verizon Wireless and AT&T Wireless announced unlimited calling packages on Tuesday, sending some minor shockwaves through the industry. Both plans give customers unlimited calls to wireless and landline phones with no roaming or long-distance charges. The immediate speculation was other carriers will have to follow suit, and sure enough T-Mobile announced their own unlimited plan a day later. Sprint actually was the first major carrier to come out with unlimited calling in the most recent round of unlimited calling plans. It was a limited trial though in San Francisco and Minneapolis. They now will have pressure to remove the trial status, and take it nationwide. Wall Street is speculating that this activity could lead to a wireless price war, consequently AT&T and Verizon stock began heading south immediately.

The stark reality with these moves is that voice is now seen as a commodity and carriers intend to make their margins with data services, text messaging, and other ancillary applications that will ride their mobile networks. Expect carriers to have a variety of add-ons to these plans. They are already wide varying, with some including text messaging, or other variations. We’ve entered a new phase of competitive posturing by wireless carriers that will impact not only the wireless space, but telecom overall.

AT&T Raises DSL Pricing by $5

Bernie — Mon, 04 Feb 2008 00:00:00 -0500

Bucking trends of lowering DSL pricing, AT&T will add $5 to the cost of most of their DSL tiers. The price change takes AT&T’s lowest DSL tier from $14.99/month to $19.99 month for a 768K download service. Their highest tier, which offers 6 Mbps will remain unchanged at $34.99/month. The changes do not impact the recently acquired BellSouth territory. AT&T still offers a “naked” DSL offer of $10/month, but it’s only available via their website and not heavily promoted. The $10 option is only a result of a FCC mandate, resulting from approval of AT&T’s acquisition of BellSouth.

Check out details in this Chicago Tribune article.