Time to cut back cell phone use, budget-conscious Americans say

Low-cost cell phone plans likely to gain steam, poll finds

While big wireless carriers such as Verizon and AT&T have yet to see their earnings overtly impacted by the recession, a new survey suggests that this could soon change.

According to a survey conducted by Opinion Research Corporation, 39% of American cell phone users indicated they are “likely to cut back” on their cell phone usage over the next six months if the economy does not improve.

The survey, which was conducted by polling more than 2,000 American cell phone users, also shows that 26% of users with contract-based cell phones feel that they’re more inclined to switch to cheaper prepaid plans than they were six months ago. The survey found that nearly one out of every five prepaid cell phone users had switched to a prepaid service in the last six months due to concerns about their jobs or the recession.

Consumers also figure to cut back on cell phone extras such as text messaging and Internet services, the survey suggests. Forty-one percent of users surveyed said they were either very or somewhat likely to cut back on their texting and data usage if the current economy doesn’t improve, while 15% of users surveyed said that they had already cut back on their data services.

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While big wireless carriers such as Verizon and AT&T have yet to see their earnings overtly impacted by the recession, a new survey suggests that this could soon change.

According to a survey conducted by Opinion Research Corporation, 39% of American cell phone users indicated they are “likely to cut back” on their cell phone usage over the next six months if the economy does not improve.

The survey, which was conducted by polling more than 2,000 American cell phone users, also shows that 26% of users with contract-based cell phones feel that they’re more inclined to switch to cheaper prepaid plans than they were six months ago. The survey found that nearly one out of every five prepaid cell phone users had switched to a prepaid service in the last six months due to concerns about their jobs or the recession.

Consumers also figure to cut back on cell phone extras such as text messaging and Internet services, the survey suggests. Forty-one percent of users surveyed said they were either very or somewhat likely to cut back on their texting and data usage if the current economy doesn’t improve, while 15% of users surveyed said that they had already cut back on their data services.

Graham Hueber, a senior researcher for Opinion Research Center, said this recession could be changing market dynamics away from data-heavy smartphones and toward a more back-to-basics approach.

“These findings do not just point to a potential shift in consumer attitudes and habits about cell phones,” he said. “The change in thinking and purchases is clearly already taking place.”

Read more about wireless & mobile in Network World's Wireless & Mobile section.