10Meters News Service

February 4, 2002 – Cell phone costs are going down in the United States and particularly in California, according to a new study by a Los Angeles-based economic research and consulting firm.

According to Econ One, the average cost of monthly service in December 2001, was $36.70, down 7.3 percent from December 2000.

The study targeted major cities in the U.S. and covered four usage levels (30, 150, 300 and 600 minutes).

Overall, Econ One said the price drops were steepest in cities where prices had been highest.

According to the research firm, California's four major markets, which it said topped the survey in December 2000, showed the greatest cost reductions: the San Francisco Bay Area claimed the greatest drop in prices, at 22.2 percent, followed by Los Angeles ( down 16.9 percent), San Diego (down 15 percent) and Sacramento (down 14.2 percent).

"Clearly, competition for the cellular consumer's dollar continues to work in the markets we survey, particularly in the higher-end plans," Charles Mahla, senior economist at Econ One said, adding that while California markets continue to be in the "upper third in terms of our cost index, it is no longer automatic to have a California market be the most expensive in the country."

Of the four typical usage levels surveyed, Econ One said that the greatest price decline was for 600 minutes of airtime, which was down 11.7 percent, on average. The average cost of 300 minutes dropped 10.4 percent and 150 minutes was down 4.5 percent.

Bucking the trend: the monthly cost of 30 minutes of airtime increased 5.9 percent, according to Econ One.

More information on the study can be found at the Econ One Web site, www.wirelesssurvey.com.