In the Face of the Recession, Cell Phone Users Going Pre-Paid

The phrase “put your money where your mouth is” has never been so literal.

In reaction to the lingering Recession, Americans have begun cutting cellphone costs, downgrading to less expensive plans and even opting for pre-paid and pay-as-you-go plans to avoid being locked into a contract in the event of unemployment.



Fortunately, cellphone providers have been keeping a close eye on the shifting market and consumer outlook.

Less than a year ago, most pre-paid and pay-as-you-go plans were available only with basic and first-tier cellphones. In other words, those that wanted to avoid contracts had to settle for bulkier, feature-deficient phones, while the stylish, upscale mobile phones and smartphones came only with 1 or 2 year strings attached.

Now many cellular providers are offering their upscale mobile phones and smartphones, which have fared well despite the ongoing Recession, without strings attached, responding both to consumer economic outlook and to the pricing war taking place between cellular providers to expand—or even maintain—their subscriber bases.

In a recent study conducted by the New Millenium Research Corporation, more than 60 million Americans have already cut cellphone-related costs. While this could mean rollout of additional consumer-friendly pricing and options, it also embodies an ongoing debate facing many consumer industries: where does utility end and luxury begin?

The answer is a convoluted one, but, the answer might be found in the same place people are putting their money.

For more information, see the the mobile review site. For more tech news, check the TTR Tech News Blog:

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