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Savings

If You’re Buying Mobile Phone Bundles, You’re Paying Too Much

April 11, 2014

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AT&T, Verizon, and the others offer bundles of minutes, texts, and data. Why?

The answer is simple. They know you won’t use all of the services in the bundle you buy. The difference between what you pay for and what you actually use is known in the industry as “breakage.” Breakage is the main way carriers make money from mobile services. If you use AT&T, just take a look at the Rollover Minutes in your account and you’ll see what we mean.

What about Unlimited Plans?

At first glance, unlimited plans look attractive. But unlimited plans are a goldmine for the carriers. They know that the average subscriber won’t make any more calls, send any more texts, or use any more data. But they charge a premium because they also know users like the convenience of not having to worry about how much they use.

The Power of Unbundling

With Appia’s unbundled approach, you pay only for what you actually use. The difference is striking.

According to industry data, the average subscriber uses 450 voice minutes, 500 texts, and 500 MB of data. The least expensive plan is about $40* per month, and that’s from a carrier that doesn’t have nationwide coverage.

That same plan would cost about $30* with Appia Mobile—a savings of 25%.

And if you’re buying from AT&T or Verizon (whose bundles are more expensive) the savings would be even greater. Big companies know this and so they have unbundled plans with the carriers. Appia Mobile makes this approach possible for small and midsized companies and organizations.

The Bottom Line

Unbundling is the secret to buying mobile services cost-effectively. See for yourself. Just ask for our mobile savings estimator tool.

*Plus governmental taxes and surcharges.

--Victor von Schlegell, President