I think we must be very lucky in the UK as we get some great PAYG deals especially on T Mobile. I am currently using 3G which has only cost me £20 for 6 months, so it was a no brainer for me and the ability to be able to use iPad anywhere has been great.
Sent from my iPad 2 using iPF
Yes - I'm always amazed when I see the prices iPad users in the US have to pay. Why is there so little competition there? Like you, I get a great deal in the UK. There are numerous unlimited plans out there for just a few pounds a month. Then I read about US members with 250MB monthly plans at $20 and I think - what????!!! Are they really paying $20 for 250MB? Any cellular provider in the UK who offered that 'deal' would attract exactly zero customers!!
Tim
Tim,
The difference goes back to the way cell phones are sold in the US versus Europe. Our early reliance on CDMA networks meant that carriers could afford to heavily subsidize the initial purchase of a cell phone in return for locking a customer into a multi-year contract. We pay practically nothing for a cell phone (purchased from a carrier rather than a manufacturer) but in return, the competition between carriers is highly restricted.
In the long run US customers would be far better off paying full price for a phone and be able to change network carriers whenever they like while keeping the same phone. Competition would then drive down carrier charges. But the appeal of a heavily subsidized phone purchase in the US combined with the absence of regulation (i.e. The EU mandated GSM networks) means US customers pay through the nose for carrier service.
Even worse, the US pricing model of subsidized device purchases went away with the introduction of the 3G iPad. Unlike phones, US customers cannot purchase a heavily subsidized iPad from Verizon or AT&T. (Apple won't allow this approach.) At best, a customer can purchase data services on a month-to-month basis. But since customers cannot easily opt for a different network carrier, there is virtually no competition.
(Technically a GSM iPad could be transferred to another network with the purchase of a different SIM card. However, the earlier model of carrier supplied subsidized phones prevents such networks from developing as an alternative for consumers.)
This is an example of the unintended consequences of a simplistic "free market" ideology as implemented in the US. By failing to clearly separate the purchase of devices (phones/tablets) from purchase of network services (as in Europe), the way is open for network carriers to avoid competition. With phones, the carriers recoup their subsidies of phone purchases with long term (high cost) contracts. With iPads, they don't even have to recoup a subsidy.
