Brace Yourself for Higher Cellphone Bills This Year

Sprint, T-Mobile say they will scale back discounting after failed merger attempt

The U.S. wireless industry is dominated by four major players: Verizon, AT&T, T-Mobile and Sprint. Now that just about everyone has a cellphone, each operator is looking for new ways to grow. But how did we go from the days of one giant landline monopoly to four competitive cell companies? Illustration: Shaumbe Wright/WSJ

Cheap wireless plans might be harder to find this year.

The two most aggressive U.S. wireless carriers, Sprint Corp. and T-Mobile US Inc., are signaling they will scale back discounting this year after a failed attempt to combine their businesses.

Sprint, the No. 4 carrier by subscribers, said last week that it would only chase new customers...