It's raining sub-$100 LTE smartphones

But pricing for two-year voice, text and data service remains high

By , Computerworld |  Mobile & Wireless

Wireless carriers recently began offering new LTE-ready phones at bargain-basement prices of less than $100, but those customers still must commit to paying a minimum of $60 a month, or $1,440 for two years of voice and data service.

Two-year plans can be even steeper for extra data or texting on some carriers. Still, such costs have become an accepted fact of life for Americans who want mobile phones. As their buying trends show, customers value having computing and communications capabilities in a convenient wireless device.

Nielsen recently reported that American are buying up smartphones at a fast clip. Smartphones accounted for two-thirds of all mobile phone purchases in the three months from December through February.

Pre-paid phone plans, generally a cheaper option, are still a small portion of the total smartphones purchased, while most buyers are willing to sign up for a two-year service plan that can get expensive.

The newest devices under $100 are likely to continue the smartphone buying trend. Sprint recently announced the upcoming LG Viper 4G LTE smartphone with a price of $99.99 after rebate and subject to a two-year service plan. AT&T will sell the Nokia Lumia 900 for $99.99 with a two-year plan, starting April 8 for use on its LTE network.

Shortly after AT&T made its Lumia 900 announcement, Verizon Wireless said it would offer the LG Lucid smartphone for $79.99 after rebate and with a two-year commitment, and noted that the phone is geared toward first-time smartphone buyers. These are the buyers who aren't accustomed to monthly wireless service plan sticker shock.

As far as the service plans go for these three carriers, Sprint is sticking to its unlimited data approach for the LG Viper. Sprint still requires an "Everything" plan, which includes voice, text and data for $70 a month, while separately increasing that amount by $10 a month for smartphones on data plans.

AT&T and Verizon both start at $40 a month minimums for voice plans, while the minimum data plan on AT&T is $20 a month for 300MB, then increases to $30 for 3GB and $50 for 5GB.

Originally published on Computerworld |  Click here to read the original story.
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