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MetroPCS Survey Finds Bay Area Teens Racking-Up Monthly Wireless Phone Bills; Wireless Phone Study Examines Teenagers' Mobile Phone Use and Calling Behavior
August 20, 2003
(PR Newswire)

Two-thirds of teenagers fail to track wireless phone plan minutes forcing parents to pay additional charges at the end of each month, according to a study released today by wireless carrier MetroPCS. Parents could save money on their monthly wireless bill by finding a good deal on local calling, since 62 percent of teens rarely or never phone outside the Bay Area. And while 86 percent of Bay Area teens that have access to text messaging on their mobile phone utilize the service each month, 77 percent limit their use because of per-message costs.

The results stem from a survey of 250 randomly selected teenagers ages 13 to 17 in the San Francisco Bay Area. MetroPCS, a wireless service provider offering truly unlimited, anytime local calls for $35 per month with no contract, commissioned the study in order to better understand the wireless usage and buying preferences of teenagers and their parents.

"The survey results validate our belief that for teens and parents in the San Francisco Bay Area, the most important aspect of wireless service is getting to talk and text message as much as they want, whenever they want -- without parents having to face a huge, unexpected bill at the end of the month. Our flat rate plan of $35 per month for unlimited local calling and optional $3 per month for unlimited text messaging gives parents peace of mind and teenagers greater independence," said Chip Graves, general manager, MetroPCS, San Francisco Bay Area. "Teenagers and their parents represent a significant market opportunity for wireless carriers, and are one of the many consumer segments that are attracted to our service plan."

Key findings include:

Parents pay and teens talk away
While most parents pay for their teenagers' mobile monthly phone bill, this may lead to less than responsible calling behavior. The study found 73 percent of parents selected a wireless service for their teen and 82 percent of parents pay their teen's monthly wireless bill. At the same time, 67 percent of teens said they never tracked how many minutes they used each month and 89 percent of teens without a pre-paid plan have gone over their monthly allotment of minutes at least five times. When it comes to exceeding monthly payments, one factor may be lengthy conversations, as 44 percent of teens reported that their average phone call lasted more than five minutes.

Teen talk is local
Parents and teens might consider wireless plans that emphasize local service more than nationwide calling since teens mostly use their wireless phones within a local area. They use it for organizing social activities with peers or checking-in with parents. The survey found that 65 percent of teen wireless calls were made to friends, 30 percent to family members and only three percent to a significant-other. In addition, most teens made nearly all of their wireless calls to phone numbers here in the Bay Area. Thirty-one percent reported that they never made long-distance calls from their mobile phone and another 31 percent said they only made long-distance calls once a month.

Price may be dampening growth of text messaging
Although popular, cost is a factor limiting the use of text messaging by Bay Area teens. The poll found that 36 percent of teens that could use text messaging did so more than four times a week and 25 percent used the service three to four times per week. However, 77 percent said they would be more likely to use text messaging if their wireless carrier offered it on an unlimited basis, or for a flat monthly rate instead of a per-message charge. At the same time, there may be a correlation between text messaging, longer talk times and exceeding monthly plan minutes. Teens who used text messaging reported average phone conversations 10 minutes longer than those who did not, and 73 percent of teens who were frequent users of text messaging had exceeded their monthly plan minutes at least five times.

Many schools now allow wireless phones
Following the passage of California legislation known as SB1253, which allowed local school districts to determine if wireless phone can be allowed on campus -- replacing a statewide ban -- a majority of schools have allowed teens to have mobile phones at school. Since the law went into effect on Jan. 1, 2003, 45 percent of teens reported that they were allowed to use a mobile phone during lunch and between classes, 15 percent for emergencies and seven percent at any time. On the other hand, 32 percent of teens said wireless phones were not allowed on campus. In addition, 78 percent of teens felt safer knowing they had a mobile phone at school, and among those students not permitted to have a mobile phone at school, 86 percent said they would feel safer if it was allowed. However, teachers and school administrators were not included in the study.

Market Trends Inc., Seattle, conducted the telephone survey from May 9 through May 25, with a margin of error of plus or minus 5.7 percent.

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