More and More Bang for More and More Bucks

[SOURCE: New York Times 1/7, AUTHOR: Ken Belson Matt Richtel]
In the supersized world of modern communications, cellphone plans are bulging with minutes, cable channels are proliferating and high-speed connections are, well, zippier than ever. Consumers are spending more than ever, but some are wondering if they are being showered with necessary advances or force-fed features they cannot hope to use. Paradoxically, the cost of providing cable, Internet and phone services has been falling. Instead of passing along the savings in the form of cheaper plans, the cable, phone and broadband providers are locking customers into higher-priced packages and giving them bigger bundles of services. The pool of new customers, after all, is shrinking - more than 65 percent of Americans already have a cellphone, for example - and companies need new revenue. "Rather than giving customers what they want or what they need, they're telling customers, 'here's what you're going to get,' " said Michael Shames, executive director for the Utility Consumers Action Network, a nonprofit advocacy group. "Sometimes, they're giving more service even though a customer doesn't want or need it." Phone companies defend their high-calorie plans by pointing out that calculated per minute, the price of cellphone and landline calls has been falling and some Internet services are now heavily discounted. Even when prices rise, companies say consumers get more in return, from camera phones to video-on-demand to extra mailboxes for e-mail. While some consumers may revel in this technological bounty, many others who just want the bare minimum are becoming annoyed.
http://www.nytimes.com/2006/01/07/business/07supersize.html?pagewanted=all
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