Lycamobile Pay As You Go. The T-Mobile MVNO is raising the per minute rate from 2¢/minute to 5¢/minute. The change, which has been rumored to be coming for over a week, is now live on the Lycamobile site.
Update 10/22/2014: The price increase never happened. Users still report being charged 2¢/minute.
Two cents per minute was the lowest pay as you go rate available from any US prepaid operator. Five cents is nothing special as it's matched by EcoMobile, PTel and H20 and beaten by PagePlus and Airvoice, which charge 4¢/minute on some plans.
In spite of the price increase Lycamobile can still be a good deal for thanks to Lyca's other money saving features. Lycamobile is unique in offering free incoming texts, free calls to toll free (800 etc.) numbers and light users can appreciate that Lyca airtime never expires as long as a call is made, text is sent or data is used at least every 90 days.
But Lycamobile's low prices have always been a tradeoff. There are lots of small and large annoyances with Lyca. MMS isn't supported, iMessage doesn't work, Lyca can't port or issue phone numbers in many markets and calling out with the Google Voice app doesn't work for some users. Lyca says that a new "Lyca Plus" service will eventually fix these issues but it's not available yet. It would have made more sense for Lyca to raise prices after the release of LycaPlus. With a price increase and no service improvements I expect Lyca will lose more than a few value-conscious customers. But maybe shedding low-profit/no-profit users is Lyca's goal with this increase.
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