CURRENT EVENTS

With the recession rapidly worsening, it seems it may last forever. Things are getting worse instead of better. There's the struggling automotive industry, our already-crashed housing market and lowering employment. On the other hand, in recent news, it was announced that the recession could possibly end after the first quarter of 2010. The latest deduction in the economic crisis is a major cut in cell phone costs. A recent survey states, conducted by the New Millennium Research Council (NMRC), Americans have declared that due to extended continuation of the recession will cause Americans to reduce their cell phones leisure. Does this mean that that cell phone business will suffer now? Definitely not. Customers are not as loyal as they once were to lead mobile distributors such as Sprint, Cingular/AT&T, and Verizon Wireless. The survey reveals that 39% mobile contracts have opted to decrease their cellular spending. That 39% is equivalent to over 60 million American consumers. The accuracy of this survey is only off about 2%, but this does not mean that the consumers aren't using any mobile devices at all. They have just found alternatives to your normal contract billing.
In fact many have already slashed their disposal on cell phones and complimentary products. 19% of survey partakers have already canceled their associated cell phone usage. Mainly due to the wiser state-of-mind many Americans have obtained as a result of the country’s financial instability.
Allen Hepner, specialist for the NMRC, furthermore affirms that slews of consumers will convert to prepaid billing instead of annual contracts. meaning, companies in the likes of Cricket, Boost-Mobile, and Tracfone will receive a large boost in sales. This is partly due to prepaid plans saving an average of 30% on monthly phone bills compared to contracts. Hepner goes on to say our modern age of “penny-pinching is here."