By Rob Enderle  |  Posted 2003-11-20 Print this article Print

-Mobiles Impressive Wireless Data Fee Structure"> This flat fee structure contains both costs and does not create one more additional billing entity making for an attractive solution. The costs break down as follows:
  • A sole proprietor or individual would pay $40 for 600 anytime minutes and unlimited Friday and Weekend calling while a small business of up to 4 people has a choice of two calling programs.
  • For $70 a month for two lines plus $10 a month for each additional (4 phone lines would be $90) the company gets 800 pooled minutes and unlimited weekend minutes for every phone.
  • $30 more raises this to 1,200 minutes (which is likely the preferred size for a company of 4) so your cell phone bill for a company of 4 per month with all you can eat data would be $120 for the phone and $160 for the data (assuming all employees used the data access). Thats $280 for a shop of 4 or $70 per employee including unlimited data and 6 hours per employee of talk time.
  • This drops to $50 per employee, or $60 for a sole proprietor, if you only need one of the two wireless choices which is actually more likely. This flat fee structure for data will likely appeal to large business, and should make the next few months rather interesting for the US domestic cell phone market. Now it is hard to believe that Sprint, AT&T mobile and the rest are going to roll over to T-Mobile, so expect some aggressive pricing from them to try to hold onto their installed base. Unfortunately for them only T-Mobile has WiFi coverage, making it very difficult for any other vendor, without partnering (which may have billing and pricing implications), to match. However, if there is a broad move to T-Mobile, network loading could pass acceptable levels for voice and/or data. Thats been the case here in California with Cingular, proving that having a low price for a device that seldom works isnt a bargain at all. Therefore, while I still think T-Mobile will likely benefit the most from this move, dont jump during the first month or two. Instead, before you abandon your current vendor, wait until the dust settles to see how loaded the network gets, and what the competitive responses. You might even be able to swing a good deal without changing providers at all.

    Rob Enderle Rob Enderle Enderle Group 389 Photinia Lane San Jose, CA 95127

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