T-Mobile Says no to Shared Data Plans > T-mobile recently dropped prices on prepaid hotspots..

said by Linklist:

Of course they are - partly. There is a fixed cost component whether the service is being used or not. And there is a variable cost component that goes up as usage goes up. Variable cost may not be a straight line but a stepped increase as certain usage thresholds are passed. But the variable cost is there nevertheless.

said by Linklist:

Of course they are - partly. There is a fixed cost component whether the service is being used or not. And there is a variable cost component that goes up as usage goes up. Variable cost may not be a straight line but a stepped increase as certain usage thresholds are passed. But the variable cost is there nevertheless.

said by Chubbysumo:

Actually, according to ISP peering agreements, the more data they use, the less they pay, so, the more we use, the cheaper it is for them per unit. Honestly, a landline costs about $0.03 per GB now, and a wireless costs is probably around $0.10, simply because of the higher costs with the wireless mode of transport. Beyond that, once it hits the tower, then its wireline if its a web request, so, the cost isnt that much more, not more enough to justify their outrageous costs per GB. There was an article about how a group of consumers is now sueing over expiring minutes on prepaid phones. If they win, they can either charge by the month, or by the usage, but not both.