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Home - Cingular Wireless looks to bolster ARPU with new postpaid plans
Archived ArticlesCarriers

Cingular Wireless looks to bolster ARPU with new postpaid plans

by RCR Wireless News June 1, 2005
written by RCR Wireless News June 1, 2005 Share
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Just a week after relaunching its prepaid offering around the GoPhone brand, Cingular Wireless L.L.C. refined its postpaid plans cutting the total number of plans available and eliminating some of its regional offerings.

Analysts noted the new rate plans could positively impact Cingular’s average revenue per user results, which have slid during the past several quarters due to the popularity of its FamilyTalk offerings and show the carrier’s strengthened competitive position as the industry’s largest operator.

The carrier’s new nationwide plans now begin at $40 per month for the same 450 anytime minutes previously offered, eliminating the previously available $30 plan that provided 200 anytime calling minutes. Cingular also eliminated the previously offered $50 plan that provided 600 anytime minutes and replaced the $70 plan that provided 1,100 anytime minutes and $85 plan that provided 1,500 anytime minutes with a $80 plan that provides 1,350 anytime minutes.

High-end plans were also modified with the $150 plan bumped from 3,000 anytime minutes to 4,000 anytime minutes, and the $200 plan bolstered from 4,000 anytime minutes to 6,000 anytime minutes, which also replaced the previously offered $250 plan that included 6,000 anytime minutes. All plans continue to include Cingular’s Rollover feature.

Overall pricing per minute remained unchanged at the $40 and $60 price points, while the new $80 offering is slightly more expensive than the previous $70 and $85 offerings. The high-end plans see the most dramatic change with the $150 and $200 plans dropping from 5 cents per minute to 3.8 cents and 3.3 cents per minute respectively.

Cingular’s FamilyTalk plans witnessed similar simplification as the carrier dropped the available plans from the previous nine choices to six.

FamilyTalk plans now begin at $60 per month for 500 anytime minutes and include two lines with each additional line charged $15. The previous offer began at $40 for 450 anytime minutes and one line, but charged $20 per additional line bringing the total two-line cost to $60.

The new $80 FamilyTalk plan includes 1,000 anytime minutes and replaces the previously offered $70 plan with two lines that included 600 anytime minutes and $80 plan with two lines that included 1,100 minutes. The new $100 plan includes 1,500 anytime minutes and replaces the previous $95 plan with two lines that included the same 1,500 anytime minutes as well as the $110 plan with two lines that included 2,000 anytime minutes.

The previously offered $160 plan with two lines that included 3,000 anytime minutes was replaced with a $150 plan that includes 2,500 anytime minutes, while the previous $210 plan with two lines that offered 4,000 anytime minutes was replaced with a $200 plan with 3,500 anytime minutes. Cingular’s most expensive FamilyTalk plan now costs $300 for 6,000 anytime minutes and replaces the previously offered $260 plan with two lines that included the same 6,000 minutes.

Cingular also dropped its Regional FamilyTalk option, forcing customers to sign up for a nationwide offering if they want to share their minutes.

Overall FamilyTalk pricing is now slightly less expensive per-minute at the low end dropping from 13 cents to 12 cents per minute for the $60 offering, while the higher-end plans are slightly more expensive increasing from 4 cents per minute to 5 cents per minute for the most expensive plan.

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