As the cost of cell phone plans come down, and the availability of prepaid cell phones becomes more ubiquitous, parents will be more willing to equip their children with cell phones. However, what about 'kids' who are not yet responsible enough to have a fully-equipped cell phone? I'm thinking of a limited-use cell phone plan that only allows the dialing to a preset list of phone numbers and emergency numbers.
The wireless companies could offer this service to parents at a reduced rate over standard plans and the phones would not need to be nearly as resilient. As a parent, I'd gladly pay $10-$15 / month to equip my 12-year old with a cell phone, knowing that it could only be used to place calls to numbers I authorize.
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I said it before, most phones can be locked down tight to limit their usage to/from certain numbers, or to preset numbers only.
It's understood that phones, or wireless carriers, can do this today. The product concept is more around how this is offered to consumers from a marketing perspective (ie. pricing, packaging, etc.)