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

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

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 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 24 Jan 2013, 03:45

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

You can also go pre-paid. While in the end those might be your two cheapest options, that is one of the things you have to acccept living in a rural area. The profit margin isn't there for them to invest millions of dollars and only get thousands in return.

posted on 23 Jan 2013, 16:36 2

10. goulav (Posts: 6; Member since: 03 Jan 2012)

The problem is; every carrier copies each other. If you want to do math - check and see which of the major carriers charge the least for sending a text message with no text package.... Plus, at&t and verizon hold over 80% of the customers. Also, why don't they offer a low minute, low text and high data plan?

posted on 24 Jan 2013, 03:52

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

I'm on a Sprint SERO premium plan.

$50 a month
500 anytime minutes
free nights and weekends
unlimited mobile to mobile
unlimited texting
unlimited data

It used to be $30 a month for the same thing without being able to get a modern phone. It was available to anyone who wanted it years ago. I sent the offer/plan to all of my friends, not one of them signed up for it. Now they bitch how much Verizon costs.

posted on 23 Jan 2013, 17:23 3

16. belovedson (Posts: 1052; Member since: 30 Nov 2010)

thats not much of a free market when your plan is limited to a specific user.

most people who stream consumes more than 10gb's a month. whether its sitting in front of the tube or through mobile means.

people in the us need to smarten up and promote articles like this one. our country is leaking money out the sides and these companies att and verizon are allowed to abuse the avg consumer because they probably and most likely pay off the right people to continue to do so

posted on 23 Jan 2013, 17:54 2

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

Free market=the right to screw us over.
Definitely not.

posted on 23 Jan 2013, 19:28 1

30. kevv2288 (unregistered)

My plan one year ago 1 smartphone with 450 mins unlimited nights and weekends unlimited texts and 4gb data( double the data offer so would normally be 2gb) - $89.99

New plans 1 smartphone unlimited talk and text (your only option is unlimited talk and text even if u used most your minutes at night or to other vzw phones you don't have a choice ) and 2gb data is $100 a month and with 4gb is $110 a month so yeah definitely more expensive for me on the new plans if I switch

posted on 24 Jan 2013, 08:48 3

45. troutsy (Posts: 319; Member since: 17 Feb 2012)

I guess basic math isn't enough to answer this problem, gotta graduate to the college level stuff. I think it's more likely that the majority of the users on this forum have unlimited data/corporate discounts than those that walk into the store and get a capped data plan with no discounts.

VZW unlimited plan (700 min, 500 text (unlim to VZW), 2 smartphones unlimited data) = $149.96
With a corporate discount (8% on plan, 12% for features) = $141.56

VZW shared plan (unlim min, unlim text, 4GB data, 2 smartphones) = $150
with a corporate discount (8% on plan, 12% for features) = $144.40

DOOOOOD, unlimited data gets dropped and the cost goes up? PASS

posted on 24 Jan 2013, 09:07 2

46. deviantirish79 (Posts: 26; Member since: 23 Jan 2012)

That is the same reason here. If i switched my plan to the Share everything plan, my bill would go up almost $30 because of 4 smartphones and 1 feature phone.
I will stick to the unlimited plans I have and buy phones outright.

I refuse to pay more for less!

posted on 24 Jan 2013, 12:54

48. corporateJP (Posts: 2458; 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 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: 1052; 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: 2458; 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)


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: 1484; 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: 1484; 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
$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: 449; 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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