U.S. cellular service costs are plunging. The consumer-price index for wireless phone service dropped 12.5 percent between May 2017 and May 2016, according to the Labor Department. That’s a pretty significant drop that could have an impact on consumers and businesses alike.
What’s Behind the Plunging Smartphone Bills?
Many in the industry attribute the plunging smartphone bills to market saturation. Now that the major wireless carriers have scooped up just about all the potential mobile customers in the U.S., they’re turning to price wars to compete with one another.
“There are ebbs and flows for sure, but I think that the past year has been the most aggressive time in wireless history,” said Jeffrey Moore, head of Wave7 Research, which tracks wireless competition, according to a report from Fox Business.
Shopping around for a new #cellphone plan? Better #FinanceFridays ahead with lower rates, more features? https://t.co/gQSXQOE7fE
— KRS CPAs LLC (@KRSCPAS) June 23, 2017
PSA: Call your carrier ASAP and ask for a discount https://t.co/DWrlkOL9uk
— Ryan Knutson (@Ryan_Knutson) June 23, 2017
So what does this mean for businesses? Well, businesses that use mobile phones for team collaboration, communicating with client and even remote work can benefit from more manageable cell phone bills.
But it could also potentially lead to more opportunities to target mobile customers. If people have to worry less about data rates and overage costs, they could be more likely to visit mobile commerce stores, find local vendors and otherwise interact with your business on their phones and other mobile devices.
The cellular service industry is constantly changing. So businesses shouldn’t necessarily count on these changes sticking forever. But for now, they certainly present plenty of potential benefits for businesses.
Smartphone Photo via Shutterstock
This article, “Plunging Smartphone Bills Are Good News for Small Business Owners in Two Ways” was first published on Small Business Trends