Cell data vs house data

Discussion in 'iOS 7' started by bigpoppamac31, Oct 6, 2013.

  1. bigpoppamac31 macrumors 68000

    Joined:
    Aug 16, 2007
    Location:
    Canada
    #1
    I'm curious to know why it's so damn expensive for data on a "smartphone" yet in comparison it's much cheaper for lots of data for ones house internet service. Why is it so much for cell phone data?? In Canada for example a person pays around $80 plus fees and taxes to have 1GB of data on their cell phone plan per month. Yet I can get a home internet plan from Rogers (for example) and get $20GB per month. And 20GB is nothing for internet usage today. That 20GB can be used up quite quickly. So why such a big difference in price?? Data is data isn't it??
     
  2. Poly macrumors 6502

    Joined:
    Jul 14, 2013
    Location:
    Germany
    #2
    Well your local connection usually uses a glass cable, which is able to deliver something around 100mbit/s for a few hundred households. High speed mobile networking consumes much more ressources.

    PLUS they know how to make money^^
     
  3. bigpoppamac31 thread starter macrumors 68000

    Joined:
    Aug 16, 2007
    Location:
    Canada
    #3
    Well yeah obviously it's a money grab. I recall back in the day when I was a teen and my family got "high speed" internet in our house. Their plans didn't include X number if GBs. Just different speed levels. It was only later that they started doing data caps for different internet plans. Which now meant if you wanted more GBs you had to pay more money.
     
  4. deeddawg macrumors 604

    Joined:
    Jun 14, 2010
    Location:
    US
    #4
    Service pricing (like data service) is FAR more about what the market will pay than it is about actual cost to provide that service.

    With that said, cable/fiber Internet typically runs on the same infrastructure as cable TV. So there's an additional revenue stream to help pay for much of the shared infrastructure.

    Also, and I'm speculating, but there may be a greater ability to scale the distribution network with ground based networking than with cell towers. Translation: the equipment costs of outfitting many cell towers may be higher than the costs of outfitting the same area for cable/fiber.
     
  5. bigpoppamac31 thread starter macrumors 68000

    Joined:
    Aug 16, 2007
    Location:
    Canada
    #5
    Either way 500MB or 1GB or data per month is nothing. I go through that in a few days. A week at most. Thankfully I still have my 6GB of data I signed up for a few years ago. It was a special deal at the time. Sadly my plan costs me $100 or so a month.
     
  6. odin macrumors member

    Joined:
    Jul 22, 2002
    #6
    It is far, far more expensive to keep equipment current for cell data. There is only so much bandwidth available to each provider. Thus, they must create more towers that cover smaller areas to confine congestion to smaller areas. Land networks have it easy in comparison. It's much, much easier to upgrade their equipment. It's cheaper as well.

    Why land based providers charge for data, I do not know. I would do my best to stick with a flat rate, unlimited provider based on what speed I would pay for. Cell providers, I do understand the limitations.
     
  7. Dwalls90 macrumors 601

    Dwalls90

    Joined:
    Feb 5, 2009
    #7
    Hopefully prices come down in coming years ....
     
  8. err404 macrumors 68020

    Joined:
    Mar 4, 2007
    #8
    Wireless bandwidth/spectrum is a far more finite resource. You may not like it, but part of the reason for the high cost is to discurage users from consuming too much and effecting other users.
     

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