Most Americans today heavily rely on cell phones for their daily activities. Businesses and personal errands are usually done with the help of these devices. Most telecommunication companies offer different plans.
However, if you don’t know what you’re paying for, you could be overpaying. Most people don’t even know what they are paying for every month or why they have a huge bill.
Some phone services keep providing add-on services that are not being used regularly hence it can add up. The average cell phone cost per month is growing and up next we’re going to tell you why and how.
What Is the Average Cost Per Month?
The average cell phone cost per month can vary from one user to another. It all depends on usage. Business people and regular travelers end up using their phones more often than those that simply use them locally.
On average, Americans tend to pay around $60 per month in 2018 and has doubled over the past years. Users that are attached to the Big Four tend to pay up to $120 per month for every phone.
This goes to show that Americans have paid more than 50 percent on mobile phone services than they were before 2007. However, there are different factors as to why the cost is rather high today than it was a decade ago.
Some families have multiple phones from a specific carrier that can cost up to $300 to $400 a month. Part of the reason for such a high cost could be the services being offered with such a bundle.
Why Cellphone Costs Are Increasing
Limited Choices for Unlimited Plans
Years ago, carriers were proud of having their own set of unlimited data plans. Later on, these companies discovered that unlimited plans also equate to hogging all the data hence these were replaced with data-capped plans.
This meant that if the user goes beyond the data cap, they would have to pay more to extend their data connection. These services can quickly drain your finances.
Not only will you have to use your data carefully, but you might also want to observe limiting your usage altogether just to save on money. Some companies do offer unlimited plans but they are scarce and have a higher price tag.
New Phones, More Data Requirement
Every year we are bombarded with new high-tech phones that offer new features that make our lives much easier. However, they can backfire as well. Most modern phones tend to use more data than their previous versions.
Previously, a user would have an average data consumption of 900 megabytes per month. It is expected to rise to 3,500 megabytes before the end of the year. With data capping and the additional charges, your bill will increase.
This also plays well with the psychology of having to own the newest phone. People tend to feel left out from their social circle if they don’t have the most updated phone brand. This can happen within families as well.
According to ComScore, there are over 172 million smartphone owners today which is a steady increase of 22 percent from previous years.
Getting Insurance and Other Additional Fees
As more and more people require high-end mobile devices, they also need protection in case accidents happen. Most of the cell phone insurance that is being offered today does not come cheap.
There are many advantages to having insurance for your phone. Many enjoy its benefits such as phone replacement within 24 hours and this can be very important if you are always on the go or running a business.
Mobile phone carriers also try to come up with more fees for different types of services. You will instantly get an activation fee for each line which can easily cost you around $35. Roaming can also increase your bill.
You will even have to pay an extra fee if you want to extend your contract or terminate it early. These charges are at the center of every debate when it comes to understanding your monthly bill.
Conclusion
The continuous search for a better cell phone experience has given the rise to cellphone costs. Mobile devices need more and more features to entice buyers, and that increases your cell phone bill cost.
The cost to sustain a single mobile phone alone is getting increasingly expensive as more and more fancy new phones are being developed.