Why is 3G so expensive?

[oberkc]

By the time we figured it all out, it would have cost about the same as a decent car payment per month for the 4 of us to have cell phones with texting and some data. No freegin way.

Yes, four phones, each with separate numbers, and the ability to take with you and use anywhere in the country is probably going to be SIGNIFICANTLY more costly than a single home phone. When comparing the price of home phone to cell phone, one also has to factor in the increased utility associated with a mobile phone. A more fair comparison would be the price of a home phone versus the price of a single, dumb, cell phone (no texting). I suspect you will find this quite comparible.

 

[RAC]

From the above discussions, do some carriers attempt to prevent tethering? I don't understand why they would, surely you just pay for additional bandwidth, most likely at a penalty rate.

 

[oberkc]

From the above discussions, do some carriers attempt to prevent tethering? I don't understand why they would, surely you just pay for additional bandwidth, most likely at a penalty rate.

Yes, some do attempt to prevent tethering.

I believe the reason why is generally because of several factors. First, some cell phone users are on unlimited data (but this is changing). The extra data used as a result of tethering would not come with extra revenue.

Second, the amount of data used by an iPad (or laptop, or whatever) is likely much greater than that which could, or would, be used by a cell phone. Cell phone data plans are based on the average for typical cell phone users. Add data associated with tethering, and the cost model goes out the window.

Third, because they think the market will bear it. They view tethering as a convenience for which people are willing to pay.

This, of course, is all speculation on my part. But it is fun to speculate.

 

[RAC]

Yes, some do attempt to prevent tethering.

I believe the reason why is generally because of several factors. First, some cell phone users are on unlimited data (but this is changing). The extra data used as a result of tethering would not come with extra revenue.

Second, the amount of data used by an iPad (or laptop, or whatever) is likely much greater than that which could, or would, be used by a cell phone. Cell phone data plans are based on the average for typical cell phone users. Add data associated with tethering, and the cost model goes out the window.

Third, because they think the market will bear it. They view tethering as a convenience for which people are willing to pay.

This, of course, is all speculation on my part. But it is fun to speculate.

I guess tethering is a bit of a game changer, causing mobile phones to handle more data than has been the case in the past. Some telcos might try to fight it but I think that they will inevitably have to come up with data plans that accept the new "normal" in data usage.

To me, the new smart phones will be the first in line when accessing email and web content, with tablets being used where higher resolution is required. Tethering the tablet to the phone is much better, from the customer's pont of view than maintaing two mobile accounts. I think that the telcos will have to get used to it.

 

[wxman2003]

If people think wireless companies are gouging people for iPad data plans, then you haven't looked at your cable tv bill. Anyone paying $100 a month to watch tv are the real lemmings. Then throw in how much cable companies are charging for internet service, and you will see what the real lack of competition can cause. To get 50+ Mbs download speeds via cable, many people are paying over $50 a month just for that lame speed. Cable companies make wireless providers look like saints.

 

[oberkc]

Tethering the tablet to the phone is much better, from the customer's pont of view than maintaing two mobile accounts. I think that the telcos will have to get used to it.

I agree. When I first purchased the Thunderbolt phone, verizon offered free tethering for a short period of time. It worked well. But the free offer has since vanished and I now rely on wifi entirely for the iPad. Like you, I don't like having to pay for two mobile accounts. Heck, I don't like paying for mobile AND land accounts.

I sense there is a lot of market adjustments going on right now. It seems as if the predominant carriers (in the US, at least) are going for tiered data plans and extra charges for tethering. Whether the forces-that-be compel the telcos to pull back on that approach is less than certain, in my mind. I think it equally likely that the customers will have to get used to it.

While I currently use a smart phone with data plan, one option I am considering for the future is one of those mobile hot spots and going to a dumb phone. Since I am carrying around an iPad (or future tablet TBD), I am less concerned about a full-capability phone than I once was. Perhaps I can take the money I spend on phone data and use it for a hot spot plan, where I can link up all my wi-fi devices. Maybe this would even allow me to cancel the cable-based internet service? One thing is for certain, however. I am NOT going to be paying for two mobile plans.

 

[RAC]

If people think wireless companies are gouging people for iPad data plans, then you haven't looked at your cable tv bill. Anyone paying $100 a month to watch tv are the real lemmings. Then throw in how much cable companies are charging for internet service, and you will see what the real lack of competition can cause. To get 50+ Mbs download speeds via cable, many people are paying over $50 a month just for that lame speed. Cable companies make wireless providers look like saints.

We are fortunate here in that free to air TV wasn't obliterated by cable. We have some reasonably good public channels, so I ditched cable a few years ago.

I am paying for broadband data and a landline phone though, and would love to avoid that double whammy.

 

[MistaKuraudo]

If people think wireless companies are gouging people for iPad data plans, then you haven't looked at your cable tv bill. Anyone paying $100 a month to watch tv are the real lemmings. Then throw in how much cable companies are charging for internet service, and you will see what the real lack of competition can cause. To get 50+ Mbs download speeds via cable, many people are paying over $50 a month just for that lame speed. Cable companies make wireless providers look like saints.

Actually paying $100 a month for 50Mb/s. It really is expensive. But my entire family actually use the internet like that, so we pretty much need this speed. And my 5 internal terabytes of HDD space that are almost full agree with me as well.

As for data plans, the second AT&T comes up with rollover data, I'm getting a 3G iPad. D

 

[tlbaker]

I pay $30 US for unlimited 3G on iPad on a grandfathered AT&T plan. I consider it a bargain and will keep it unless AT&T cuts me off. That's still cheaper than my grandfathered unlimited 3G plan on iPhone, which is discounted through a corporate deal.

I use unlimited off contract in Asia, and it's even cheaper.

How did you manage to get an unlimited data plan for the iPad?? You are the only person I know who has this. I never even knew it existed. Was the plan extremely short lived? Must have been around since the launch of iPad 1 or maybe they didn't offer the plan for corporate accounts?

Sent from my Verizon Black 64GB iPad 2 IOS 5.0.1 Update using iPF

 

[tlbaker]

I don't understand why 3G on an iPad is like £15 a month, but my phone contract has unlimited internet PLUS 2k minutes, 3k texts etc and is still £15 a month with a phone thrown in?

Are they ripping us off?

Everything costs money these days. Nothing is going to be cheap especially with Apple, wireless technology, etc. Maybe it will get cheaper one day, I guess, life VoIP vs. regular landlines.

Sent from my Verizon Black 64GB iPad 2 IOS 5.0.1 Update using iPF

 

[Kaykaykay]

How did you manage to get an unlimited data plan for the iPad?? You are the only person I know who has this. I never even knew it existed. Was the plan extremely short lived? Must have been around since the launch of iPad 1 or maybe they didn't offer the plan for corporate accounts?

Sent from my Verizon Black 64GB iPad 2 IOS 5.0.1 Update using iPF

Yes, the window was brief for unlimited via AT&T, starting with the launch of iPad 1's 3G model. They soon stopped offering it, but customers with the plan were allowed to keep it, even if they upgraded to iPad 2.

I now switch my unlimited SIM between iPad 1 and 2, but I checked to make sure that it didn't violate my contract, because I don't want to lose unlimited. I even had AT&T note in my record that I checked. I switch the SIM if one iPad is more charged up than the other and I need to run.

Those who wanted to keep unlimited have had to keep subscribing nonstop, or lose the plan, though. It's worthwhile enough to me that I kept subscribing even while I was abroad for months and not using it.

I like the freedom of unlimited, even at the price. While in Asia, I also buy unlimited, off contract. But in Asia it's cheaper because of competition and much greater density. As someone else mention, the U.S. plans cover the country, including places with low density and rural areas. I've driven cross country multiple times and taken other long road trips, and otherwise fly to many cities, and I've been pleased with the coverage I've found, all for 30 bucks.

In Asia and Europe, there also are fewer carrier subsidized phones and tablets. You buy whatever device you want, then pick a data plan. You pay upfront for the device (say upward of $650 for a low-end iPhone 4s).

 

[jsh1120]

...To get 50+ Mbs download speeds via cable, many people are paying over $50 a month just for that lame speed. Cable companies make wireless providers look like saints.

I'm not a defender of cable companies but a download speed of more that 50 megabytes per second is very, very fast regardless of the transmission medium. To put it in perspective it's about 75 times faster than 3G speeds. Furthermore, the "limit" on my internet connection is 250 gigabytes per month. Fifty bucks per month is a huge bargain compared to wireless providers.

 

[jsh1120]

...

Those who wanted to keep unlimited have had to keep subscribing nonstop, or lose the plan, though. It's worthwhile enough to me that I kept subscribing even while I was abroad for months and not using it.

I like the freedom of unlimited, even at the price. While in Asia, I also buy unlimited, off contract. But in Asia it's cheaper because of competition and much greater density. As someone else mention, the U.S. plans cover the country, including places with low density and rural areas. I've driven cross country multiple times and taken other long road trips, and otherwise fly to many cities, and I've been pleased with the coverage I've found, all for 30 bucks.

In Asia and Europe, there also are fewer carrier subsidized phones and tablets. You buy whatever device you want, then pick a data plan. You pay upfront for the device (say upward of $650 for a low-end iPhone 4s).

Kaykaykay makes a subtle but important point in the first paragraph above. As most people know, the standard iPad data plan from Verizon and AT&T allows a user to "turn it off and on" in 30 day "chunks" without a long-term contract. This can be an undeniable advantage for those who rarely need 3G support. However, what may not be obvious is that suspending your 3G service for a month actually cancels the service. You have no guarantee that you'll get the same deal if you turn it on a month later. If the carrier changes the terms to, say, $60 for a month, that's what you'll pay when you reactivate the service.

I point this out only because many people assume they have some sort of guarantee that they can deactivate a data plan and reactivate later at the same price. Not so either for the sort of (rare) unlimited plan that Kaykaykay has or for the more common 30 day data plans on the iPad.

Finally, I suspect that most readers understand this, but just for the record, her approach involving purchase of an "off contract" data plan when she travels is possible ONLY with an iPad that includes a SIM card. If you purchase a "Verizon iPad" (i.e. CDMA) you won't have a SIM card and won't have the flexibility she describes.

On the other hand, if you purchase a "mifi" (mobile hot spot) from Verizon, you'll find it DOES have a SIM card that can be changed when you're overseas. Of course, like Kaykaykay's data plan unless you purchase a mobile hotspot at full retail, you'll be stuck with a one or two year contract that obligates you to a monthly charge (analogous to her unlimited data plan) even if you don't use it. I have a mobile hotspot from Verizon that I use with my wifi-only iPad. It's $50 per month for a five gig ceiling on either 3G or 4G networks. When I'm overseas, I can purchase an off-contract data plan for the hotspot, just as Kaykaykay does for her iPad, and have access to 3G (as well as wifi). (4G is rare in Europe and most of Asia at the present time but is expanding rapidly.)

As an aside, I think there is a career opportunity available for someone to be a "mobile data plan consultant." As another poster noted, this stuff is insanely complicated. And that's not accidental.

 

[tlbaker]

Yes, the window was brief for unlimited via AT&T, starting with the launch of iPad 1's 3G model. They soon stopped offering it, but customers with the plan were allowed to keep it, even if they upgraded to iPad 2.

I now switch my unlimited SIM between iPad 1 and 2, but I checked to make sure that it didn't violate my contract, because I don't want to lose unlimited. I even had AT&T note in my record that I checked. I switch the SIM if one iPad is more charged up than the other and I need to run.

Those who wanted to keep unlimited have had to keep subscribing nonstop, or lose the plan, though. It's worthwhile enough to me that I kept subscribing even while I was abroad for months and not using it.

I like the freedom of unlimited, even at the price. While in Asia, I also buy unlimited, off contract. But in Asia it's cheaper because of competition and much greater density. As someone else mention, the U.S. plans cover the country, including places with low density and rural areas. I've driven cross country multiple times and taken other long road trips, and otherwise fly to many cities, and I've been pleased with the coverage I've found, all for 30 bucks.

In Asia and Europe, there also are fewer carrier subsidized phones and tablets. You buy whatever device you want, then pick a data plan. You pay upfront for the device (say upward of $650 for a low-end iPhone 4s).

You lucked out for sure!!! Very expensive for phone across the pond!!

Sent from my Verizon Black 64GB iPad 2 IOS 5.0.1 Update using iPF

 

[tlbaker]

Kaykaykay makes a subtle but important point in the first paragraph above. As most people know, the standard iPad data plan from Verizon and AT&T allows a user to "turn it off and on" in 30 day "chunks" without a long-term contract. This can be an undeniable advantage for those who rarely need 3G support. However, what may not be obvious is that suspending your 3G service for a month actually cancels the service. You have no guarantee that you'll get the same deal if you turn it on a month later. If the carrier changes the terms to, say, $60 for a month, that's what you'll pay when you reactivate the service.

I point this out only because many people assume they have some sort of guarantee that they can deactivate a data plan and reactivate later at the same price. Not so either for the sort of (rare) unlimited plan that Kaykaykay has or for the more common 30 day data plans on the iPad.

Finally, I suspect that most readers understand this, but just for the record, her approach involving purchase of an "off contract" data plan when she travels is possible ONLY with an iPad that includes a SIM card. If you purchase a "Verizon iPad" (i.e. CDMA) you won't have a SIM card and won't have the flexibility she describes.

On the other hand, if you purchase a "mifi" (mobile hot spot) from Verizon, you'll find it DOES have a SIM card that can be changed when you're overseas. Of course, like Kaykaykay's data plan unless you purchase a mobile hotspot at full retail, you'll be stuck with a one or two year contract that obligates you to a monthly charge (analogous to her unlimited data plan) even if you don't use it. I have a mobile hotspot from Verizon that I use with my wifi-only iPad. It's $50 per month for a five gig ceiling on either 3G or 4G networks. When I'm overseas, I can purchase an off-contract data plan for the hotspot, just as Kaykaykay does for her iPad, and have access to 3G (as well as wifi). (4G is rare in Europe and most of Asia at the present time but is expanding rapidly.)

As an aside, I think there is a career opportunity available for someone to be a "mobile data plan consultant." As another poster noted, this stuff is insanely complicated. And that's not accidental.

No it is definitely not accidental. That's why I posted earlier that 3G / 4G is expensive just because it is...

Sent from my Verizon Black 64GB iPad 2 IOS 5.0.1 Update using iPF