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

0. phoneArena 23 Jan 2013, 15:39 posted on

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...

This is a discussion for a news. To read the whole news, click here

posted on 24 Jan 2013, 12:54

48. corporateJP (Posts: 2453; Member since: 28 Nov 2009)


Koolaid. It costs some people ALOT more to be on a Share Everything plan than the previous pricing system.

posted on 24 Jan 2013, 13:01 1

49. corporateJP (Posts: 2453; Member since: 28 Nov 2009)


The goverment allowed this, not the people. Verizon is the only real choice where I live. Nobody wanted them to buy Alltel and AT&T screwed us with the leftovers. We had no choice. Not everybody lives in the "big city". The government still has archaic laws written in the days of analog cellular that were never rewritten because of lazy buracracy or lobby might. We can't have more towers. Do some research.

You come off as a carrier fanboy.

posted on 24 Jan 2013, 13:13 1

50. corporateJP (Posts: 2453; Member since: 28 Nov 2009)


That "regional carrier" excuse is worse than calling the "rural" reasoning an "excuse".

We don't have any regional carriers where I'm at anymore, they were all bought by Verizon and AT&T. AT&T barely works, so by default T-Mobile works even worse. You get kicked off of Sprint for excessive roaming after a few months.

Cincinatti Bell and Bluegrass are poor examples.

You need to get out of Eastern Ohio and Western Kentucky and see the rest of the country for what it is, my friend.

posted on 24 Jan 2013, 19:45 1

53. jherz6 (Posts: 216; Member since: 23 May 2008)


Theres always a way around having to pay outright for a new device to save your unlimited data. Add a line of service for ten bucks using a simple phone which requires no data and use it to upgrade your line of service. You will not loose your unlimited data. Whats a extra ten thats lunch once a week.

posted on 24 Jan 2013, 20:31 1

54. Whateverman (Posts: 3284; Member since: 17 May 2009)


Yeah, I thought about doing that, but I'm still not sure. There is still the matter of my wife's upgrade too.

posted on 25 Jan 2013, 20:25 1

59. metalpoet (unregistered)


tmobile also sucks in about half the country, I wouldnt hesitate to go to them if they had faster than 2g speeds in my state!

posted on 25 Jan 2013, 20:26

60. metalpoet (unregistered)


because if verizon is the only consistant carrier in your area, than youll do whatever they want and pay whatever rate that want to charge even if my cellphone bill is more than my car payment or rent!

posted on 25 Jan 2013, 20:30

61. metalpoet (unregistered)


sometimes the successful need to be taken down a peg or two or TWELVE! maybe all i want is My Galaxy S3 to have 4G LTE 4GB/ month, 200 minutes, and unlimited texting and not have to pay $1110 for that one line!

posted on 25 Jan 2013, 20:35

62. metalpoet (unregistered)


gawain. come to Washington County, Utah. 200,000 People here and there is no "local" carrier! The only consistant service here is Verizon with NO dead zones, next is Sprint with half the area a dead zone, after that is AT&T with 35% coverage and T-mobile with 100% 2G/EDGE speeds.

posted on 28 Jan 2013, 11:55

63. forgingsteel (Posts: 13; Member since: 11 Apr 2012)


Can you expand on this? Use what to upgrade your line of service?

posted on 23 Jan 2013, 17:05 3

11. Sparhawk (Posts: 75; Member since: 10 Mar 2012)


"easiest numbers to parse right now" = reporter unwilling to spend the time to look up the competitive numbers.

"trouble starts with the feature that we had been hoping for since the tablet boom started a couple years ago" = we brought this on ourselves. Verizon was only providing what the market requested.

posted on 23 Jan 2013, 17:08 4

12. Truth (Posts: 62; Member since: 15 Jul 2009)


@michaelheller granted there are huge geographic areas of the USA where there are only two choices, but very few people live there. Hey there are only two carriers in Alaska serving 2 people that is unfair. Lets change because Alaska is bigger than Rhode Island but Rhode island has more people. Ohwell. That doesn't make sense.

posted on 23 Jan 2013, 17:16 3

14. InspectorGadget80 (unregistered)


Its because their greedy with their over price plan

posted on 23 Jan 2013, 17:19 4

15. belovedson (Posts: 1045; Member since: 30 Nov 2010)


its increasingly annoying how american consumers give in to the exploits of credit and telecommunication companies like verizon and at&t. i mean they have been in trouble before (at&t) of monopolizing and ripping off consumers. i sometimes wonder if its ok for people to get ripped off.

the next evolution of communication is video. video requires bandwidth. in the meantime verizon and at&t duped many people into giving up there unlimited data plans and they continue to lie.

never give up unlimited plans, they cant simply breach a contract your paying for unless you sign a new contract. i would consider it avg data use if the american consumer to be around 12gbs a month for multimedia users (netflix, streaming audio, Youtube).

how the avg is 1-2gb a month is beyond me.

posted on 23 Jan 2013, 17:52 3

22. androiddownsouth (Posts: 598; Member since: 02 May 2012)


It is because the average user uses their phone for calls, text, email, pictures, and social networking. Not as many as you think stream videos over their wireless data connection. Also, many people use Wifi as well. I see many people with smartphones that use less than 1 GB a month.

posted on 24 Jan 2013, 13:20

51. corporateJP (Posts: 2453; Member since: 28 Nov 2009)


You clearly work for Verizon in some capacity, because your answers are always verbatim from their playbook.

posted on 23 Jan 2013, 17:52 6

21. Joshing4fun (Posts: 1237; Member since: 13 Aug 2010)


Are we supposed to be surprised that Verizon screwed us over more? This is how they've already operated; squeezing money out of customers while making it seem like a good deal.

posted on 23 Jan 2013, 18:03 3

24. nyamo (Posts: 274; Member since: 19 Mar 2011)


michael is right, i would love to go to t-mo but service in iowa is terrible. outside the metro is like non existent. not to mention when my wife had service with them she rarely had service. just because there are multiple options doesn't mean all are viable. and in no way am i going back to a cdma carrier, and i do know that limits my options greatly

posted on 23 Jan 2013, 18:20 5

26. 1ceTr0n (Posts: 549; Member since: 20 May 2012)


Greed. End of article

posted on 23 Jan 2013, 19:20 2

29. papss (unregistered)


My thoughts are that you can pay a small amount (tmob) and get slightly inferior service or you can pay more and get better service (VZN and AT&T). These companies don't owe us anything.. It's like going to a nice restaurant and complaining about the bill or going to a Audi dealer and want Toyota prices for the superior products. Seriously you don't have to use their service, hell you don't have to own a cell phone.. The problem I see is entitlement..

posted on 23 Jan 2013, 19:31 4

31. JohnnyBravo (Posts: 105; Member since: 02 Dec 2012)


PHONEARENA: I DEMAND YOU GIVE MICHAEL H. A RAISE FOR BRINGING THIS SUBJECT TO LIGHT. Good Job Michael.

I cant think of any other service that sticks it to their customers this bad...maybe Comcast with their cable service.

posted on 23 Jan 2013, 21:50 1

35. Whateverman (Posts: 3284; Member since: 17 May 2009)


I agree. Where I live, Comcast is the only cable provider in town. They were charging us $170 for tv and Internet, and a DVR, no phone, no movie channels. I just bought a Roku box, added Hulu plus and Netflix, cut the big by 100 bucks.

I want to do the same with my cell phone service but it isn't looking good at all. The only way to cut my bill at this point is to go to a feature phone, and I'm seriously considering doing that.

posted on 24 Jan 2013, 04:00

42. rallyguy (Posts: 620; Member since: 13 Mar 2012)


Satellite isn't available?

posted on 23 Jan 2013, 19:39 1

32. jroc74 (Posts: 6019; Member since: 30 Dec 2010)


What? someone is missing form the comments here.....I expected his to be first...lol.

Depending on some things...I woulda saved money by going to the shared data plans. I have a 3 line family plan....1 line unlimited, 1 with 10GB and one with 2GB I think...

And depending on some things....Verizon is a few dollars cheaper than AT&T.

posted on 24 Jan 2013, 00:07 1

36. speckledapple (Posts: 892; Member since: 29 Sep 2011)


I understand what you mean and its true but there is something else you failed to mention, choice. At least in the US there is a significantly limited amount of choice in getting the best, everywhere, for the right price. The problem is that through whatever means carriers in the US have gotten large amounts of leeway by the government. They are allowed to charge damn near anything, change their plans for more revenue without regulation, and lastly restrict what we download under the blanket of network optimization. Its a major problem.

What can we do about it? Well writing ones congressman does nothing but we choose with our pocketbook as well. I must say as Verizon user, I know what they charge and how it just creeps up. I think we pay way too much. But then again, we have allowed our choices to become very limited havent we.

posted on 24 Jan 2013, 00:30 2

37. cripton805 (Posts: 1464; Member since: 18 Mar 2012)


Actually the government is restrictive and Verizon and Att do everything in their power not to allow anyone else to build their companies large enough to compete.

Sprint has been attempting to build, but their limited to the FCC and regulations. Verizon and Att call the shots. They buy what they need if they see a threat.

posted on 24 Jan 2013, 04:11

43. rallyguy (Posts: 620; Member since: 13 Mar 2012)


Charge what they want and change their plans for more revenue without regulation? That's a good thing because the government only screws things up. You think the government really works for the people? You don't want the government running things.
I would disagree, the companies are regulated in many ways. The biggest if by the consumer. You think they can charge $500 a month? They can, but who would sign up for it? They charge for a service what they believe people will pay. Do they want to make money? If people were not signing up for the data shared plan they would drop it. So educating people is the best way to make change, not bitching at a company.

So many people talk about the evil companies making a profit. But if you work for that company where do you think your raise comes from? How are they able to offer benefits? Also let's not forget that many many people are benefiting from these companies making profits.
Those of you that have a 401K, retirement account, or investment account. How do you think the money in your account keeps going up? A business looks profitable for some reason. Your account manager uses your money to buy stock in the company. The company makes a profit, the price of the stock goes up, then your account manager sells it and makes money, which means you make money.
The company itself like Verizon for example. Why does it invest billions of dollars in new technology? To provide a better service which they believe people will pay more money for. The prices may be high, but when you signed the contract you believed the service you were going to receive was worth the monthly price.

posted on 24 Jan 2013, 16:27 1

52. cripton805 (Posts: 1464; Member since: 18 Mar 2012)


When I had signed up for VZW three years prior, they changed everything and screwed their loyal customers by limiting their data, taking off 1 year upgrades to main line, removing upgrades all together IF you wanted to keep unlimited, crappy customer service, and bullsh** plans.

Obviously I cancelled.

Now $90 unlimited talk & text, 1gb of data
Before
$90 400 Mins, unlimited text & data.

The previous plan was MUCH better for data users, but it's whatever benefits Verizon. It really doesnt matter if they offer unlimited everything for $90. They can still make major money, but they choose to be stingy and it will come back to haunt them.

posted on 25 Jan 2013, 16:35

57. Larry_ThaGr81 (Posts: 447; Member since: 26 May 2011)


This is why I won't give up my unlimited data nor change the core of my plan because they seem to get worse as time passes.

posted on 24 Jan 2013, 06:14 2

44. ronjr123 (Posts: 87; Member since: 16 Feb 2012)


I think one of the main reasons our pricing is so much more than other parts of the world has to do with the subsidizing of phones. Of course, we American consumers are used to the two-three hundred dollar pricing for a premium device. Do not think for one minute that that is all you are paying for it, the rest is rolled into your monthly bill. Over the length of a two year contract you are paying a lot more than the retail price for the phone.

At this point how do we fix this? Idk.

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