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Pricing

Because of the increased competition for cellular service, prices are dropping. According to a February 9, 1999, speech by William E. Kennard, the former chairman of the FCC, prices dropped 40 percent in the three years prior to 1999. All the digital cellular services offer "buckets" of minutes for fixed fees. For example, they may offer 600 minutes for $59 per month, with no roaming charges and low per-minute charges on long-distance calls. Roaming services allow customers to use their cellular telephones in areas other than their home regions.

The next challenges facing the cellular industry is to improve coverage of digital cellular phones so that service is uniform throughout the country. Moreover price decreases in the form of f ree incoming calls need to take place so that more people including teenagers use phones as a substitute for their traditional landline phones.

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