The convenience, style and increasing affordability of cellular phones are prompting some college students to use them as their primary sources of communication. However, mobile phones are becoming problematic for cash-strapped universities across the country that are feeling the impact as students no longer pay for university-operated phone lines.
“My cell is great,” said Dan Fuhrmann, a University of Wisconsin sophomore. “I pay $34.99 a month for more minutes than I need. On top of that, I can play snake until the sun sets.”
The Federal Communication Commission estimates that 61 percent of all 18-to-24 year-olds carry cell phones. In addition, the Cellular Telecommunications & Internet Association estimates the total amount of Americans talking on cell phones is increasing by 75 percent every year. As cell phones become more popular, the cost of owning one has dropped, causing them to sometimes be more affordable than traditional “landlines.”
While students are cashing in on the savings, universities are losing out. Ironically, the money students save by switching to cellular may ultimately fall back to the universities in the form of rising high-speed Internet-access fees. These costs were formerly offset by telephone services.
Students in UW residence halls use the AT&T Campus Union System. When calling long distance, to ensure separate phone bills students must enter a personal security code. The system charges UW residents 5.5 cents per minute. Cell-phone users like Fuhrmann enjoy not having to worry about separate bills and special codes.
“Since I never use up my minutes anyway, there is no need for me to worry about going over,” Fuhrmann said. “Plus, I’m gone all day at school, so why should I pay for something I’m not using? My plan gives me all these night minutes for free, and that’s when I’m home.”
Mike Rodefer, Manager for Verizon Communications in Madison, says cellular sales have been increasing for a few years.
“Sales have gone up quite a bit,” Rodefer said. “For the most part, it’s students from out of town who don’t want to hook up a landline. Most of the dorms already have Internet service hooked up.”
Officials at UW said the cellular crunch has not affected them yet, but this is not the case for a number of other universities.
The University of California-Santa Barbara has lost $500,000 in the last two years while the University of Rhode Island has seen telephone bills drop from $800,000 five years ago to $100,000 this year.
Some campuses are combating the losses by going entirely wireless and equipping students with cell phones, such as American and Southern Mississippi Universities. Others are decreasing landline rates and offering discount phone cards.
As universities wage war against declining revenue, cellular-phone companies do the same in the price arena. As many as six major cellular carriers are engaged in a price war, driving prices down and luring customers in.
“It’s almost stupid if you don’t go cellular,” Fuhrmann said. “It’s just convenient.”