Survey: Isles pay
highest cell bills

Hawaii customers' $40.91 average
bill tops major markets

By Rob Perez
Star-Bulleti

Hawaii residents on average pay the highest rates in the nation for wireless phone service, according to a recent survey.

Econ One Research, a California-based economic research and consulting firm, says Hawaii customers averaged $40.91 on their wireless bills.

That was tops among 15 major markets the company surveyed nationwide, with Los Angeles customers paying the next highest amount: $40.79.

Atlanta was the cheapest market at $32.37.

The company based its findings on rate information pulled from Web sites of wireless carriers in each market. For each carrier, Econ One calculated the cost of using a phone 30, 150 and 300 minutes a month, based on the best plan available in each category.

The Hawaii results were based on rates from GTE Wireless, VoiceStream Wireless Corp., AT&T Corp. and U.S. Cellular Corp.

GTE serves the entire state, VoiceStream is on Oahu, Maui and the Big Island and U.S. Cellular offers service on the Big Island. Econ One used AT&T's Maui rates, though the telecom giant is acquiring Honolulu Cellular, which offers service statewide.

Eric Fruits, an economist at Econ One, said the cost of providing wireless service probably is fairly high in Hawaii because of its mountainous topography. Markets with lots of mountains and hills are more costly to serve because such markets require carriers to erect more towers than in flat areas to relay phone signals, Fruits said.

Industry representatives locally didn't dispute the company's overall findings. But Kenneth Morikawa, marketing coordinator for VoiceStream, said wireless rates in Hawaii and elsewhere have declined in recent years because of increased competition.

Five years ago only two wireless carriers competed on Oahu. Today, six do, Morikawa said.

"With the competition in Hawaii right now, the customer is really benefiting," he said.

Kerri Lum, marketing director for GTE Wireless, noted that some mainland markets are used by carriers to introduce very low -- but usually temporary -- test or promotional rates, a factor that could skew comparisons.

She said GTE Wireless in some cases has forgone dropping rates "to rock bottom" and instead offered discounts for services where demand has grown, such as making calls within family networks.

This is the first time Econ One has done the wireless survey.

Fruits said the company did so to help consumers compare the cost of cellular service, a none-too-easy task given the many differences among carrier plans.

On a per-household basis, the Hawaii market is considered one of the most penetrated in the country for wireless phones.