The tipping point

Gary Kim: "Wal-Mart's new “Straight Talk” prepaid service, offered at the $30 and $45 levels, could end up being the “tipping point for millions of consumers who are already considering moving away from expensive contract-based cell phone service,” says Allen Hepner, New Millennium Research executive director.

Hepner believes that the $30 plan (with 1,000 minutes, 1,000 texts per month, mobile Web access and no-extra cost 411 calls, with no contract and no penalties) and the $45 plan (unlimited calling, texting, mobile Web and 411) that Wal-Mart now offers under the “Straight Talk” brand are going to get serious attention."

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Straight Talk is "the 'invisible hand' at work"....

... bringing you the lowest cell phone prices in history," according to Dr. Mark J. Perry, a professor of economics and finance in the School of Management at the University of Michigan.

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Straight Talk means "new competition for U.S. wireless providers"

Bloomberg.com: "Walmart could grab sales from competitors by expanding the availability of low-priced plans, even as wireless growth slows, said Michael Nelson, an analyst at Soleil/Nelson Alpha Research. Walmart is entering the fastest-growing part of the almost saturated U.S. mobile-phone market, he said.

'Walmart has a history of being, in many cases, a category killer,' New York-based Nelson said in a telephone interview. “I would expect the increasing proportion of new wireless sales to be sold through the big box retailers and indirect dealers versus traditional, company-owned stores."


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No contracts with Straight Talk!

"What about contracts? Nope, you won’t find any contracts with Straight Talk."

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"New Walmart cell phone plans are designed to say the consumer nearly 500 dollars a year."

Huliq News: "Its $30 dollar monthly cell phone plan includes many goodies. It will have 1,000 minutes, 1,000 texts, 30MB of mobile Web access, nationwide coverage and 411 calls at no extra charge. For these types of services we are all paying an average of $78 dollars a month. The New Walmart cell phone plans are designed to say the consumer nearly 500 dollars a year.

The company says that its $45 dollar cell phone plan will give the consumer the following services. It will have unlimited services such as minutes, text and mobile web. The Walmart 45 dollar plan will also have a nationwide coverage and 411 Information calls at no extra charge.

These cheaper prices will take away the market share from the other major cell phone service providers. However, the consumer will gain from it. There is no reason one should be locked in an expensive cell phone service plan in the 21st century. In fact, I am looking forward to this new price drop in cell phone services and commend Walmart with this new bold step of Straight Talk cell phone plan."

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Straight Talk In The News

"Wal-Mart is set to launch a national no-contract cell phone program for consumers who don't want to be tied down to a carrier for years'-long contracts.

The Bentonville, Ark.-based retailer has reached an agreement with Straight Talk, a service of TracFone Wireless, the Miami-based subsidiary of America Movil, owned by Mexican billionaire Carlos Slim.

Wal-Mart's entry into the no-contract world could serve as a 'tipping point for millions of consumers who are already considering moving away from expensive contract-based cell phone service,' said New Millennium Research Council Executive Director Allen Hepner, in a statement..."

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GoMo News:Straight Talk is "a pretty damn good deal."

GoMo News is very impressed with Straight Talk:

"I think this is a pretty damn good deal. You can walk out of a Walmart with a brand new device and 1,000 mins talk and text in your pocket for $65. I went phone shopping in San Francisco less than two weeks ago, and the cheapest I could get the same deal for $120 from T-Mobile (check out that article here). So in terms of price, this is pretty good news for consumers.

I have to wonder what the consequences of this deal are, though. You have Walmart here, buying space on networks through an intermediary… and selling it on at cheaper than the networks sell it. Frankly I’m pretty surprised that this service got launched at all - just how much are networks willing to undercut themselves? Or it could be a case of Walmart being able to afford to pay the operators the difference from their own pocket, in order to attract subscribers. If so, to what end?

I’m pretty amused by the $45 dollar tariff as well - pipping Sprint by 5 bucks a month at the unlimited game is quite a little PR coup."

Even more Unlimited

A great thing just got even better.

Straight Talk's game-changing Unlimited deal now has Unlimited minutes, messages, data -- anytime and nationwide. Plus, calls to 411 at no additional charge.

Deal!

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