Title: The pricing of wireless phone services in the USA: issues and development trends

Authors: Young B. Choi, Travis C. Bache, Liza L. Hill

Addresses: Department of Computer Information Systems and Management Science, College of Business, James Madison University, 800 South Main Street, Harrisonburg, VA 22807-0001, USA. ' Department of Integrated Science and Technology, James Madison University, 800 South Main Street, Harrisonburg, VA 22807-0001, USA. ' Department of Computer Science, James Madison University, 800 South Main Street, Harrisonburg, VA 22807-0001, USA

Abstract: The growth of wireless phone subscribers in recent years contributes to the myriad of service packages offered by the providers. With the increase of service capabilities, the fee usually increases. Often, the service terms are complicated, and the factors which determine the pricing structures become a public concern. Human factors are the primary drives in the wireless phone services and pricing. The obvious players in driving the rates are service providers and consumers; however, policy makers and investors may also play important roles in the service price. In addition, the wireless phone makers and developers could also decide the base cost of the phones, and when providers offer free phones to the new customers, cost is passed to the subscribers. This paper analyses the relationship between the wireless phone services and their pricing. We will concentrate on policy makers, service providers, and consumers. Their influences on the price of services may be critical to the future development of wireless phone technologies.

Keywords: pricing structures; wireless phone services; policy makers; FCC; WTB; USF; E911; service providers; ILEC; CLEC; local exchange carriers; MTSO; handoffs; roaming; customers; consumers; itemised billing; packages; call plans; mobile communications; cell phones; mobile phones; USA; United States.

DOI: 10.1504/IJMC.2007.011815

International Journal of Mobile Communications, 2007 Vol.5 No.2, pp.169 - 185

Published online: 24 Dec 2006 *

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