Google Inc. (NASDAQ:GOOGL)’s plan to tap into the wireless business should come with a fair amount of benefits to consumers as well as ripple effects to other players in the wireless industry. During an interview on Fox Business, host of ‘The Clark Howard Show’, Clark Howard, said prices for plans could hit lows of $10 a month with the entry of Google in the wireless industry
Clark maintains consumers should avoid signing long-term contracts with major carriers at the moment as prices are set to go down in the coming months.
“We have had a great last year with rates going down-down but we are still in early endings of this game. It is going to be so cheap to use a cell phone and if I really reach out there I would say by the end of next year you will be able to find plans that are $10 a month. For talk text and certain amount of the web,” said Mr. Howard.
Price wars are sure to be the order of the day with the entry of Google Inc. (NASDAQ:GOOGL) as other major carriers will be forced to lower prices as one of the ways of keeping consumers happy and fending off competition. The giant search company is looking to team up with T-Mobile Us Inc. (NYSE:TMUS) and Sprint Corp (NYSE:S) to offer wireless service.
Republic Wireless currently offers the cheapest plan at $25 a month made of unlimited text call and data with the price expected to drop even further with the entry of competition of Google Inc. (NASDAQ:GOOGL)’s caliber in the space. Consumers are poised to be the biggest beneficiaries of the price wars with Howard of the opinion that Verizon Communications Inc. (NYSE:VZ) will be the biggest looser of the imminent price tussle.
“The only real loser I see in the marketplace right now from all of these is Verizon. Verizon has maintained a very high price point because of their network, but the network is becoming less important because of what is known as offloading. Where behind the scenes we don’t even realize our calls are going out. Our data usage and everything going out over Wi-Fi even when we haven’t done anything differently other than opening our phone and start to use it,” said Mr. Howard.
The use of Wi-Fi connections is set to be a game changer in the near future sure to cause carriers to cut prices. Cable Vision has already unveiled its plan over Wi-Fi connections in what is known as ‘Freewheeling’ with a plan that goes for as little as $9.95 a month for unlimited text talk and data.
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