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[PA] Data is cheaper to transmit, so why is Verizon more expensive?

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To be fair, this isn't an issue specifically with Verizon, but Verizon does have the easiest numbers to parse right now. According to some research done by The New York Times' Brian X. Chen, the trouble starts with the feature that we had been hoping for since the tablet boom started a couple years ago: shared data plans. Those plans make it so while data is now cheaper for carriers to transmit, carriers like Verizon are also able to charge more for that data.

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post #2 of 224
Pretty sure this has been known for a whlie.
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post #3 of 224
Answer? Greed. Over-charging. No regulations on capping the profitability of what is actually a utility. IT's like broadband or natural gas. They're allowed to screw their customers at any corner.
post #4 of 224
Quote:
Originally Posted by XNine View Post

Answer? Greed. Over-charging. No regulations on capping the profitability of what is actually a utility. IT's like broadband or natural gas. They're allowed to screw their customers at any corner.

BINGO!
post #5 of 224

The same problem exist in the wired Internet space. The only ISPs that can justify the high costs are satellite providers, because the price of the satellites and launching them into orbit is actually astronomical in comparison to just laying out some fiber. Particularly here in the United States, we get screwed with high prices for absolutely no reason. 

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post #6 of 224
Quote:
Originally Posted by XNine View Post

Answer? Greed. Over-charging. No regulations on capping the profitability of what is actually a utility. IT's like broadband or natural gas. They're allowed to screw their customers at any corner.

Well, this thread can be concluded right here. No need for further discussion. Nail on the head.thumb.gif
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post #7 of 224
Quote:
Originally Posted by XNine View Post

Answer? Greed. Over-charging. No regulations on capping the profitability of what is actually a utility. IT's like broadband or natural gas. They're allowed to screw their customers at any corner.

If people are willing to pay it, that's what the service is worth, and what they should charge. Cell phone data is not in any way like a utility. You don't need it, no matter how much you think you do. You do need heat and water.
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post #8 of 224
Because they can only charge in monetary values, not the withered souls of their victi... I mean customers.
post #9 of 224
Infrastructure cost money.
 
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post #10 of 224
Quote:
Originally Posted by Crazy9000 View Post

Quote:
Originally Posted by XNine View Post

Answer? Greed. Over-charging. No regulations on capping the profitability of what is actually a utility. IT's like broadband or natural gas. They're allowed to screw their customers at any corner.

If people are willing to pay it, that's what the service is worth, and what they should charge. Cell phone data is not in any way like a utility. You don't need it, no matter how much you think you do. You do need heat and water.

On the contrary, the internet and mobile data are arguably used far more than heat or water. I'd say those are probably the two largest utilities (aside from electricity, of course) in the world now.

Once society needs something as a basic part of living, it's considered a utility. You could argue that we could all use land-lines, fax machines, and photocopiers, but again, those are no longer standards. Cell usage is used by business people, parents, teachers, couples...the internet is used by... well, just about everyone.
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