Falling prices for telecommunications

August 31, 2001

In 2000, falling prices were registered for telecommunications services.

Percent change in Producer Price Index for net output in telecommunications industries, Dec. 1999-Dec. 2000
[Chart data—TXT]

The producer price index for telephone communications, except radiotelephone, decreased 1.7 percent from December 1999 to December 2000. Producer prices for wireless communications dropped 6.1 percent in that period. Specifically the price for cellular and other wireless voice grade services decreased 6.3 percent, while the price of paging services fell 4.5 percent.

Declining prices for cellular services were the result of increased competition and further development of the wireless telecommunication infrastructure. At the same time, more customers gained greater access and wider utility while using the services. Furthermore, prices fell as carriers formed strategic alliances with other carriers to eliminate roaming charges and, in many cases, long distance charges.

These data are a product of the BLS Producer Price Index program. The producer price index for wireless telecommunications began in June 1999. Learn more in "Producer prices in 2000: energy goods continue to climb," by William F. Snyders, Monthly Labor Review, July 2001.

SUGGESTED CITATION

Bureau of Labor Statistics, U.S. Department of Labor, The Economics Daily, Falling prices for telecommunications on the Internet at http://www.bls.gov/opub/ted/2001/aug/wk4/art05.htm (visited July 29, 2016).

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