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News > Technology
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Cell phone prices rising
Several cell phone carriers plan to discontinue discounts and cheap rate plans, report says.
May 22, 2002: 10:34 AM EDT

NEW YORK (CNN/Money) - Some cell phone companies have discontinued their cheapest plans and discount rates in recent weeks causing average cell phone rates to rise, a newspaper reported Wednesday.

AT&T Wireless (AWE: up $0.08 to $7.51, Research, Estimates), Nextel (NXTL: up $0.24 to $5.01, Research, Estimates) and Sprint (PCS: up $0.25 to $10.00, Research, Estimates) have all made changes, ending a pricing strategy that attempted to lure new customers, the Wall Street Journal reported.

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The recent changes came after some of the carriers, including Verizon Wireless (VZ: up $0.48 to $43.50, Research, Estimates) as well as AT&T, began offering free long-distance with certain plans and also started giving away large numbers of minutes during peak-hours, the report said.

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In part because of the depressed economy, subscriber numbers went down in the first quarter of 2002 compared with the same period in 2001, pushing the carriers to shift strategies, according to the Journal.

But, consumers can still jump into some plans before they expire, including Sprint's 4,000 minutes plan for $39.99, which ends at the end of the month.

Other plans being discontinued include Nextel's 2,200 minutes at $29.99 and AT&T's bonus of 50 percent more minutes for committing to a two-year plan, the report said.

Last year, cell phone usage by minutes increased 75 percent, which placed stress on some carriers, the paper reported.  Top of page






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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.