LOS ANGELES-Econ One Research’s latest monthly survey of wireless-phone service prices showed that some carriers charge up to twice as much for the same service in one city as they charge in another.
The economic research and consulting firm’s October survey covered the 18 service providers that operate in 25 of the largest U.S. cities. Of those, 15 operate in multiple markets.
Econ One said AT&T Wireless Services Inc., SBC Communications Inc., Cellular One and GTE Wireless showed the widest price variations for similar plans on average.
For example, for a 150-minute plan, AT&T Wireless charges $50.47 in Chicago, more than double what it charges in Miami and Tampa. Cellular One offers callers in Chicago 150 minutes for $40, 60-percent more than it charges its customers in Kansas City, Mo.
U S West Wireless charged the same price everywhere for each of its different plans. PrimeCo Personal Communications L.P., VoiceStream Wireless Corp. and BellSouth Cellular Corp. showed less price variation from city to city than most providers, said Econ One Senior Economist Charles Mahla.
“As with gasoline, there may be some local factors which affect the price, such as the expense of building and maintaining a wireless network in different cities,” said Mahla. “But the price probably also reflects what providers believe the `traffic will bear.’ Consumer willingness to pay usually depends on the strength of the local economy and the strength of competition within the market.”
The survey also showed that the average price of wireless-phone service went down .68 percent in October to $43.35. The San Francisco Bay Area was the most expensive market for the second straight month, with an average price of $47.96, followed by Los Angeles, Dallas, San Diego and Chicago. The least expensive city was Philadelphia, with an average price of $40.25, followed by Miami, Sacramento, Tampa and Atlanta.
