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Service costs drop 0.3 percent in March

LOS ANGELES-A recent study by Econ One, an independent economic research and consulting firm, said the average cost of cell-phone service across U.S. cities for March 2001 has actually dropped 0.3 percent, to $38.90.

The study reported the average cost for the month of March decreased in 16 cities, increased in five and was unchanged in four. The greatest increases were in Miami, Tampa and Cincinnati, with the greatest decreases in San Francisco, Minneapolis and Phoenix.

Service was most expensive in San Francisco-which ironically also showed the greatest decrease in cost-Cincinnati and Los Angeles. The lowest costs for service were found in Atlanta, Phoenix and Minneapolis.

“For some time now, we’ve been noting that wireless price changes would likely diminish in their swings. It appears that we’re now seeing that. Plan changes have slowed, and month-to-month drops in costs have slowed with them,” said Charles Mahla, senior economist with Econ One.

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