Yes, America, we are really paying too much for our data plans.

Discussion in 'iPhone' started by iAi, Oct 16, 2012.

  1. iAi macrumors 6502

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    #1
    NY Times
     
  2. luqtotheman macrumors regular

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    #2
    Basic economics:

    when demand increases at a constant supply price will increase. The rate the demand is increasing in America I am surprised the prices aren't even higher.

    Telecom's aren't keep up as much with their infrastructure either keeping supply of data around the same. It's easy for companies to charge what they are charging now due to low competition. AT&T and Verizon then sprint is 2nd tier. Gives us telecom oligopoly.


    We don't have any telecom subsidies in America either which will raise prices.
     
  3. gentlefury macrumors 68030

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  4. tymaster50 macrumors 68030

    tymaster50

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    #4
    It is because americans will pay for anything. They figured since they can con us out of an extra $40 when most people don't even use that many minutes or texts that they can raise the prices high and people would still pay for it.
     
  5. chakraj, Oct 16, 2012
    Last edited: Oct 16, 2012

    chakraj macrumors 65816

    chakraj

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    #5
    But there is a spectrum crunch, they dont have enough to go around that's why they moved to tiered pricing.

    everyone knows that spectrum is going extinct.

    It will only be a matter of time and there wont be any spectrum left running free, then you will all look back at this and wish they had made it even more expensive.

    Those poor phone companies, being abused by all of those greedy people who have unlimited data plans. I just cant believe you would buy unlimited when offered, then expect to be able to use it, its you greedy users who made this happen. with unlimited $30.00 per month you have to use 12 gigs every month to match the Euro price per gig.

    If all of you abusive unlimited users would just give up your plans then Im sure the companies would lower their rates.

    Those poor telecom companies, god bless them every one.

    Save the spectrum!
     
  6. gentlefury macrumors 68030

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    #6
    No, its because we want it and don't have a choice. They can charge a premium for the slowest data rates on the planet. Since Verizon and AT&T have no real competition they can both offer the same crappy plans as each other, and never compete for data, service, or price. They just keep collecting profit. It's to a point now that they don't even care if you switch to the other company...you will eventually come back...or if you don't who cares...they both carry the majority of the market.
     
  7. ericrwalker macrumors 68030

    ericrwalker

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    #7
    I wonder if people take population density into calculating the cost of infrastructer.

    North America is a large piece of land with a low population, it's a lot of land to cover.
     
  8. chakraj macrumors 65816

    chakraj

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    #8
    True true, I have found a picture of the radio waves going from station to station, they take more work than you think. Its a big country to cover.

    Those are buckets full of radio waves traveling across the nation.
    bucketbrigade.jpg
     
  9. Koodauw macrumors 68040

    Koodauw

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    #9
    Germany is a lot smaller than the US geographically. Thus here in the US we need more Towers, and more Maintenance people for the towers, and more infrastructure to make it work. Wouldn't that lead to higher costs and thus higher prices? Or do the foreign networks cover the same square millage as say ATT and Verizon?

    edit: Beaten to the point.
     
  10. gentlefury macrumors 68030

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    #10
    Its also odd that these companies update their systems that don't matter.

    Verizon has LTE with speeds up to 40Mb/s in small towns in GA with populations of 10,000....but I live in Santa Clarita, CA, Population 175,000 and we are stuck in 3G land. Its just so they can advertise that they have SO much coverage...but its actually a lie. They have coverage where it isn't needed.
     
  11. willmtaylor macrumors G3

    willmtaylor

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    #11
    Sure, the Europeans get a better deal with wireless data and plans, but we get ice in our glasses & free refills!
     
  12. tymaster50 macrumors 68030

    tymaster50

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    #12
    Like I said they will pay for anything. No matter how many people call Verizon and AT&T out at the end of the day they will still use them and nobody will care past that point. The average consumer thinks the prices are a little steep but it's their only option. The average consumer also doesn't consider alternatives like Cricket and Straight Talk.
     
  13. sviato macrumors 68020

    sviato

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    #13
    The companies have no issues keeping up with costs. There is simply a lack of innovation and competition. Verizon and AT&T run the industry in the states and can essentially do anything they want. Sprint is at least trying to be competitive by differentiating its products.

    I'm surprised the government hasn't stepped in to do anything about it as these companies get away with too much. I laughed when I heard you needed to switch plans to be able to use hotspot/tethering/facetime. Not only are these companies charging ridiculous amounts for data, they're double charging the data by limiting what you can and can't do with it based on how much you're paying.
     
  14. Consultant macrumors G5

    Consultant

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    #14
    Well one problem is the size of US. Telecom have to provide coverage at vast amount of highways and suburbs.

    Another problem is the "not in my back yard" attitude in terms of cell antenna, making it difficult or expensive to add coverage in cities.

    You meant oligopoly, because there are at least AT&T, Verizon, Sprint, T-Mobile.
     
  15. Gasu E. macrumors 68040

    Gasu E.

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    #15
    This is an interesting question, but unfortunately the article provides us with useless information. First, it says there are only three providers of national LTE coverage across the US. Then, by way of comparison, it says there are 38 providers of LTE in Europe. WTF? How many of these 38 are providing coverage across all of Europe? All 38? Somehow, I doubt this. More pertinently, how many competitors are there in the London area, vs. the New York area? Paris? Munich? Milan? The article does say there are a whopping three providers in "small countries" such as Finland and Austria, so there are at most three providers that cover all of Europe.
     
  16. Mickyvai macrumors newbie

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    Sep 18, 2012
    #16
    I'm Italian and I am on H3G. For 5 euros a month I have:

    - 2 hours of calls a day towards other H3G numbers
    - 120 SMS and 120 mms a day towards other H3G numbers
    - 60 minutes of calls a month towards any number
    - 50 megs a day of data (Hsdpa)
    - 1 free movie theater ticket a week for the last two years

    No kidding.
     
  17. Spectrum Abuser macrumors 65816

    Spectrum Abuser

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    #17
    We don't need to be paying twice for the same service. Don't touch a dime of tax payer money for a cellular company.
     
  18. chakraj macrumors 65816

    chakraj

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    #18
    for seven dollars here I can get,,,,,,,,, 28 text messages or 14 picture messages. that sounds fair.
     
  19. iAi thread starter macrumors 6502

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    #19
    Where's our free movie tickets, Verizon & ATT?!!!! Grrrrrrr, that makes me even madder!
     
  20. gentlefury macrumors 68030

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    #20
    yes
     
  21. Daveoc64 macrumors 601

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    #21
    But then they have far more customers to balance that out.

    That combined with not covering a huge majority of the land.
     
  22. McN00b, Oct 16, 2012
    Last edited: Oct 16, 2012

    McN00b macrumors newbie

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    Oct 15, 2012
    #22
    I live in northern Europe and for the equivalent to $75 per month (2 year contract) I get:

    - The new iPhone 5 64GB
    - Free and unlimited calls (within my country)
    - Free and unlimited SMS
    - Free and unlimited MMS
    - Free and unlimited video calls (within my country)
    - Free Spotify Premium
    - Mobile broadband at 32 Mbit/s (60 GB bandwidth per month - If I use more the speed will decrease to 0.5 Mbit/s)

    Edit: When it comes to broadband at home I pay the equivalent to $60 per month for 1000 Mbit/s via fiber with unlimited bandwidth.
     
  23. ericrwalker macrumors 68030

    ericrwalker

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    #23
    I doubt that, how many customers per square km/mi does AT&T have compared to O2?
     
  24. aneftp macrumors 68040

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    Jul 28, 2007
    #24
    USA is a very large country to cover.

    Ask other large countries in size like China, Canada, Russia, Brazil, India.

    How much do those customers pay for "nationwide coverage"

    We already know the Canadians pay and arm and a leg for there services with 3 year contracts.

    At least we have family plans in the USA to Leo offset some of the higher cost.
     
  25. Lone Deranger macrumors 65816

    Lone Deranger

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    #25
    You mean you get your drinks diluted with really cold water. ;)
     

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