This story appears in the
January 2003 issue of
Entrepreneur.
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Cingular Wireless is spending big to attract customers with
Rollover Minutes. But what's carrying unused minutes into
future months worth to you?
What sounds like a price decrease really isn't, says Gartner
Inc. analyst Bryan Prohm, because the nation's second-largest
carrier hiked prices before the rollout. Also, this plan has the
usual gaggle of restrictions. Rollover Minutes is only on local
calling plans, and you must sign up for at least 600 peak and 3,000
off-peak minutes for $39.99 per month with a $36 activation fee and
a $150 termination fee. Long distance is included, but roaming
costs 79 cents per minute.
Rollover Minutes could save you if your usage varies monthly,
because you can bank minutes for up to a year. Get a lower-minute
plan and build a cushion for when you get chatty. Wireless users
waste hundreds of minutes a month, reports research firm J.D.
Power.
Will this idea catch on with other carriers? Probably not, says
Prohm. AT&T, Nextel, Sprint, T-Mobile and Verizon say they
won't roll out rollovers. Instead, says Prohm, they'll
dangle cheaper rates and/or bigger buckets of minutes in front of
you.
San Francisco-based Erik P. Nelson is a frequent contributor
to Entrepreneur.