At a conference last week, a speaker shared a great insight with the audience. It took 21 years for 1 billion cell phones to be sold, but only 3 years for the next billion to be sold. I was impressed and wondered how much mobile phones would become like other commodities.
Verizon has been one of the leaders in this space, first relieving consumers of automatic contract extensions and then recently allowing phones from other companies to be used with a Verizon service plan. The first was about to be legislated into existence, but the second was smart, consumer-centric marketing.
Now Virgin Mobile, a company whose mantra seems to be “good service costs” has announced that service contracts are no longer necessary. The company’s month-to-month phones, once the province of convenience stores and companies reaching out to folks with poor credit, are sure to appeal to a wide range of consumers who have to have the latest gadget, phone or service now.
One caveat though: if you are planning to do any major home revisions when new television regulations take effect in less than one year, speaking to a service provider about bundled services is a smart move. Many cable companies are selling wireless and traditional phone plans while many phone companies are moving into video. They all know that the consumer electronics industry is going to be in flux for the next year, especially during the 2008 holiday season.
Waiting might make sense. And if waiting isn’t appropriate for your situation, then a monthly contract with a well-known provider like Virgin may be a good option.
Posted under Products
This post was written by George Bounacos on March 26, 2008
