From KXAS-TVWal-Mart has jumped head-on into the prepaid, no-contract cellular business with a plan as low as $30 per month. The world's largest retailer started selling its discounted "Straight Talk" cell phones in October and analysts predict it could force other cell phone companies to chop prices.
"It's good for the consumer, no doubt about it," said Stan Block, a finance professor at Texas Christian University's Neeley School of Business. "I think other companies will drop their prices. They've already started."
The $30 plan offers 1,000 minutes of talk time, 1,000 text messages and limited data. A second plan includes unlimited talk, text and data for $45.
Both plans provide free directory assistance calls. The phones are barebones and start at $29.
Wal-Mart managers say the discount cell phones are making a big splash. The competition could squeeze profits from other cell phone providers, especially those that also offer prepaid, no-contract deals.
