An International Comparison of Cell Phone Plans and Prices
Policy Paper
Oct. 14, 2010
Cell phones are intertwined with our lives no matter where we are in the world. The New America Foundation's Open Technology Initiative (OTI) recently completed a survey on the costs and types of mobile cell phone packages available to consumers around the world. With recent policy debates over Bill Shock and Consumer Disclosure, this study provides useful insight into business models prevalent in several key countries. Plans in some countries provide different offerings and bundled services for students, professionals, family, corporate and special needs consumers. In other countries it appears that a significantly more competitive market than what exists in the United States has resulted in innovative offerings and lower pricing for consumers. In contrast, in countries where competition is less and regulation more lax, higher prices and a limited choice of plans prevail.
In OTI's study, we researched cell phone voice, text and data services for prepaid, regular postpaid, and unlimited postpaid plans provided by prominent cell phone carriers in 11 countries. We consider unbundled services using rates available to individual consumers. To provide a more direct comparison, our study indicates the price in US Dollar (USD) per minute, per text, and per megabyte at a unit level and minimum total cost of individual cell phone package.