The discussion highlights the high cost of mobile data in the U.S., with the country ranking fifth for the most expensive mobile data in comparison to similar markets. The high prices are due to various factors including the cost of running and maintaining the infrastructure, administrative costs, and taxes. Despite having multiple major carriers, the U.S. does not have competitive pricing like countries with fewer carriers. Consumers often have to choose between paying for a set amount of data and getting charged extra when they use more, or paying more upfront for unlimited data, which doesn't always result in unlimited speeds.
Mobile virtual network operator (MVNO) companies like Mint and Google Fi offer cheaper plans, but they are not as popular as traditional cell phone plans. The cost of data usage is tied to the amount of data sent and received, with Verizon, for example, potentially slowing speeds after 22 gigs of data.
The high cost of data usage also extends to the infrastructure that makes it possible. When you use 4G data, your phone sends packets of information to a cell tower, which then sends information back and forth over miles of fiber optic cables and submarine cables. The cost of running and maintaining this infrastructure contributes to the high price of data.
Cell phone taxes vary widely by state and even within a state, with some states having significantly higher taxes. There is also a lack of investment in rural areas, where technologies like 5G are slower to reach. In low and middle-income countries, high data costs are one of the biggest factors preventing people from getting online.
While some countries are making efforts to lower mobile data prices and improve affordability, not all consumers in low-income areas benefit from these efforts. In the U.S., there are concerns that a merger between Sprint and T-Mobile could lead to a lack of competition and increased costs for consumers. It is advised to shop around and negotiate with carriers to potentially find cheaper plans.
1. The bill for two phone lines comes to over 142.
2. There are charges for 4G LTE access.
3. There are fees and taxes associated with the bill.
4. The U.S. has the fifth most expensive mobile data.
5. The cost of one gigabyte is affected by various factors.
6. The U.S. has four major carriers: Verizon, AT&T, T-Mobile, and Sprint.
7. Despite having multiple carriers, the U.S. prices aren't as competitive as countries with four carriers.
8. Research firm ReWheel found that median mobile gigabyte prices in the U.S. were 16 times higher than European markets with four carriers.
9. Consumers have to choose between paying for a set amount of data or paying more upfront for unlimited data.
10. Unlimited data doesn't mean unlimited speed. After a certain point, speeds may be throttled.
11. A study from North Eastern found that video streaming was throttled even when the network wasn't under a heavy load.
12. Mobile virtual network operator companies offer cheaper plans but aren't as popular as traditional cell phone plans.
13. Using an extra gigabyte of data doesn't require Verizon to make another gig to replace what was used.
14. The cost of maintaining the infrastructure, including fiber optic cables and submarine cables, contributes to the cost of mobile data.
15. Cell phone taxes vary widely by state and even within a state.
16. There's a lack of investment in rural areas compared to densely populated cities.
17. In 2018, average mobile download speeds in Massachusetts were more than double speeds in Wyoming.
18. High data costs are one of the biggest factors that prevent developing countries from getting online.
19. In low and middle-income countries, one gigabyte of mobile data costs 5.5% of the average monthly income.
20. Some countries are putting specific focus on lowering mobile data prices, such as Malaysia, which has invested in subsidizing access to lower-income groups.
21. The U.S. Federal Communications Commission (FCC) has taken steps towards limiting the spending of universal service programs, which could limit broadband access in rural areas and classrooms.
22. T-Mobile and Sprint are trying to merge, which may increase competition or limit it depending on the outcome.
23. Higher data costs and lack of regulations on carriers can hurt consumers.
24. Even in a market that isn't competitive, consumers may still have some choice and can shop around for cheaper plans.