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munky99999
Munky

join:2004-04-10
canada
Reviews:
·Cybersurf Intern..

Cost of Service

Lets look at some costs of service.

911/emergency costs: Well my old unactivated phone has service. For FREE. Except if you're a customer... it costs you $2 every month.
Activation costs: For the right to become your customer... I have to pay. There is no associated costs to the carrier. Yet they charge up to like $100.
Phonecall costs: GSM codec(if i remember correctly) essentially runs about 64kbit; or 8KB/s or just slightly above dial up 56k speeds. So 1 minute is equivalent of 480KB. Pricing for phonecalls is roughly around 25cents per minute. So roughly you pay 50 cents per megabyte.
Text costs: A text/sms message is the equivalent of 250bytes of data. It literally costs a carrier nothing to send them. Yet they charge roughly 20 cents per text msg. This is the equivalent of $1,000 per megabyte.
Data costs: 1 Gigabyte is generally 40$/roughly 4 cents per megabyte. The overages are 5 cents or so per megabyte.

Now the reality of what it costs to serve up that Gigabyte; 5 cents is pretty much the highest expense per gigabyte. Their pricing literally is 1000x more expensive then it really is. The cost regardless of the application or whatever; doesnt change. A packet is a packet. Charging insane amounts of money on text msgs doesnt mean that somehow it costs them more to send them. It's also not like there's some sort of person's wages involved in it neither.

Hell I'll be first to say should someone be paying $30/month and be able to download 1.5 terabytes in that month? Hell no. It costs the carrier 75$ to transfer that 1.5 terabytes; but how about 200 gigs/month? For the carrier to transfer 200 gigs in the month. It costs them 10$ to transfer that data. Well within the costs for service of $30; also healthy profit.


fifty nine

join:2002-09-25
Sussex, NJ
kudos:1

said by munky99999:

Lets look at some costs of service.

911/emergency costs: Well my old unactivated phone has service. For FREE. Except if you're a customer... it costs you $2 every month.
911 service is like ER costs. You can't refuse service to people even though they can't pay because federal law says you (the company) have to provide it. Most people who call 911 have cell phone plans anyway and pay the 911 tax.


Famous1

@losrios.edu

reply to munky99999
You do make a great point in all areas..

I would laugh at how a person could get 1.5TB via a 3G connection though, especially in one months time!

As a whole though, these prices are fairly outragious and cannot be justified beyond a little more profit.



dvd536
as Mr. Pink as they come
Premium
join:2001-04-27
Phoenix, AZ
kudos:4

reply to munky99999
A sms message is 160 chars MAX and don't forget it runs over what they need anyway to provide voice service and then theres the double dipping issue.
SMS is the cell providers CASH COW!
--
When I gez aju zavateh na nalechoo more new yonooz tonigh molinigh - Ken Lee


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