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- 01-06-2012 11:36 AM #11
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Most businesses these day now have on site wifi and the same with most of us at home. So why don't this top 1% understand they should be surcharged, capped and pay more than the rest of us; like me whom only use 25% of his 2gb of data on my iphone last month because I have it set to use wifi first. You suck up all the bandwidth you should pay for it.
Forced from Dish to Time Warner Cable to get my hometown Buffalo Sabres Games and the NewYork Yankees. Looks Like I will keep the Rabbit Ears with Tin Foil and a Transistor Radio, handy just in case
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- 01-06-2012 11:48 AM #12
The problem is that it is not a problem in Europe where the cell phone companies work to provide the capacity needed for unlimited at lower prices. Note that all the talk of capping is in North America. Canada started it all with their near monopoly, they capped home broadband and wireless all the time. US providers have tried to follow both at home and cellular connections. Not that there is really a bandwidth shortage, but a shortage of the companies investing.
Home broadband costs less than 1 cent per GB to deliver. The capping is just trying to protect video revenues and generate more profit. Cellular is closer to 10 cents. If they charged overages at a 100% markup, $1 should get you 5 more GB (i.e. 20 cents).
I would be happy to pay realistic rates for my data consumption. I pay $30 for unlimited. If it were say limited to 10GB (i.e. $1 in real cost to the phone company and the rest for overhead and profit) then $1 for each 5GB I go over, fine. Everyone would make money. And they demonstrate it works in EU. In fact they say go ahead and be unlimited because few are ever going to use 300GB a month that a $30 bill would cover.
The same goes for the home market. Charge me $20 for a 50 mbit connection and then 2 cents a GB.
Also it is not the top 1% it actually 7.6%+ since they were counting world wide cell phone users of which 87% do not even have a data plan.
Like I mentioned above this was writting to try to make people mad thinking that some small group is driving everyones bill up by sucking down all the data in the world. When in reality the heaviest use customers are in Europe and they have no issue. This seems like a plant from AT&T or VZ to try to justify their lack of investment and near duopoly status. Poor Sprint is trying, but they are losing out on all the overage charges.
Why are you having to buy 2GB of data every month when you only use 500MB? Because AT&T knows that most their customers cannot live on the 200MB plan, so they priced accordingly to max profits.Last edited by mike123abc; 01-06-2012 at 11:54 AM.
- 01-06-2012 02:29 PM #13
Here is why, and who uses all that bandwidth.
New iPhone doubles data consumption: study | Reuters
Note how consumption went up from iPhone 3 to 4, and then way up to 4S.
It's all Apple's fault! -
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- 01-06-2012 03:50 PM #14
Mike123,
That price you are quoting for data delivery includes no costs for infrastructure or amortized plant/last mile costs. There are terrific long and mid term costs associated with both of those that needs to be factored in.
They are often overlooked, but should not be.
Sent from my Transformer Prime TF201 using TapatalkCurmudgeon in Training / Surround Music Enthusiast
Dish Subscriber since 1999
Opinions are my own, not that of any publication I write for.
- 01-06-2012 10:02 PM #15
That is true, but AT&T has managed to squeak out a 39.95 billion dollar EBITDA over the last 4 quarters even with all those data hogs. One notices that while VZ decided to put in data caps, they were not complaining about being out of bandwidth and their customers seemed to not be complaining about their network. They also got the iphone now and it did not collapse their network either... Hmm could it be that AT&T simply has under invested in their network for years, using it as a cash cow and then come up with some fake crisis excuse to try to buy out a competitor to just get more control of the market without investing in more towers and backhaul? It is also true that AT&T (well until VZs approval to buy the cable company spectrum) has the most spectrum of all the carriers and is sitting on the most unused frequencies.
Maybe someone will finally do something with T-Mobile. They just got a huge present from AT&T. Will they use it to build out a nice LTE network to compete with the others?
If there was real competition in the US, it would be like Europe where companies are all pushing unlimited at low rates and putting a resonable amount back into the network to builld it out to handle the capacity.

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