Pressured by high inflation, more than half (56%) of Americans are open to switching mobile service providers to save money, according to a new mobile pricing report from billing technology provider Doxo.
The firm’s 2022 analysis of the $166 billion mobile phone market found that consumers paid an average of $113 per month, or $1,275 annually. But year-over-year, the 2023 study found that most households (94%) have seen a 5% increase in their monthly bills. They now spend $119 per month or $1,428 annually, which when averaged over all U.S. households becomes $1,342 annually.
Nationally, Americans now spend $175 billion annually on mobile phone services, according to the report.
“Mobile Phone Market Size and Household Spending Report for 2023” also breaks down average charges by state. Hawaii residents have the highest bills, at $165 monthly. They are followed by West Virginia at $143 monthly and Wyoming at $142. Cities with the highest average bills are Boston ($211), Kansas City, Mo. ($143), and San Diego ($131).
While bills in general have risen, some carriers have launched plans that enable some users to reduce their overall charges. For example, Comcast Xfinity Mobile last year introduced new pricing for two and three lines of Unlimited, for $30 per line. According to Comcast, the offering can save customers up to 50% over AT&T, 45% over Verizon, and 25% over T-Mobile for two lines, with additional savings for two or more lines. Pricing for Xfinity Mobile’s Unlimited plans are now $45/line for one line, $30/line for two, three or four lines, and $20/line for additional lines.
“With the average American dishing out nearly $1,000 for a flagship smartphone in 2023, and prices only expected to rise, it’s not surprising that the majority (86%) of consumers report a growing concern about their mobile phone bills,” Liz Powell, senior director of INSIGHTS at Doxo, said in a prepared statement. “In the modern-day mobile era where nearly every American household has a mobile phone bill to pay, it’s never been more critical for consumers to have access to this level of data transparency.”