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Service prices drop 0.8% in July

LOS ANGELES-The average price for monthly wireless service dropped 0.8 percent from June to July in the 25 largest markets to $40.31 per month, according to a survey by Econ One.

“The modest decrease in July’s prices, following the larger drop in June suggests that in most places consumers are benefiting from continuing downward pressure on prices,” said Charles Mahla, senior economist at Econ One. “There still appears to be month-to-month volatility in the cost of wireless service, as witnessed by the large shifts in average cost in some cities, but we remain impressed with the overall trend with pricing.”

San Francisco was the most expensive city surveyed for wireless service, averaging $44.08 for July, an increase of 0.1 percent from June. St. Louis, which also experienced the largest increase in average prices at 6.6 percent, was the second most expensive city at $43.97.

Atlanta was the least expensive city surveyed posting an average wireless price of $36.18 during July, a decrease of 4 percent compared with June. Phoenix, which experienced a 1.9-percent drop in prices, followed at $36.94.

Washington, D.C., reported the largest drop in average prices, falling 5 percent to $39.26, followed by Atlanta’s 4-percent drop and Pittsburgh’s 3-percent decrease to $40.68.

The only cities to post an increase in average prices were San Francisco, up 0.1 percent; St. Louis, up 6.6 percent; Cleveland, up 2.4 percent to $41.12; and Sacramento, Calif., up 1.4 percent to $37.91.

Mahla explained that cost changes generally occur due to special incentive plans offered by carriers and not because carriers lower or increase their per-minutes rates.

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