U.S. citizens are shelling out an extra 5% for their mobile phone bills compared to last year. While this may seem like a small increase, it translates into billions of dollars more in revenue for mobile carriers. There could be ample reasons behind it, including the hike in career plans.

Americans collectively spent about $9 billion extra

A new study from doxoINSIGHTS outlines how much Americans spent on mobile phone bills this year. It found that the average American spent an average of $119 per month on mobile phone bills this year, up from $113 last year. This means a yearly average of $1,342, a 5% increase from last year’s $1,275.

Americans collectively spend a whopping $175 billion on mobile carrier services each year. And while a 5% increase might not seem like much, it translates into an additional $8.75 billion in revenue for these companies. Whether this increase in revenue reflects an improvement in service quality is a matter of debate. Nevertheless, the financial gains for mobile carriers are undeniable.

The report is based on an analysis of anonymized bill pay data from over 8 million consumers. This data shows that 94% of American households pay a mobile phone bill.

California has the biggest mobile phone market size, followed by Texas and New York

The report lists that California has the biggest market size in terms of mobile phones, closely followed by Texas and New York. Moreover, states like Hawaii ($165), West Virginia ($143) and Wyoming ($142) have the most expensive phone bills. Meanwhile, Nebraska ($105), Florida ($107), and Arkansas ($104) have the most affordable phone bills.

In terms of cities, Boston ($211) leads the chart as being the most expensive “largest” city for mobile phone bills, closely followed by Kansas City ($143) and San Diego ($131). Indianapolis ($89), Tucson ($89), and Minneapolis ($89) remain the most affordable cities in the U.S. for mobile phone bills. The report adds that mobile phone bills account for about 2% of annual household spending in the United States.

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