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morbo
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join:2002-01-22
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reply to tcope

Re: stupid

$30 a month per device for smart phone data is not cheap. It is actually very expensive, and that is what providers are using to build out their network. This artificial price floor that has been, conveniently adopted by almost all cell providers, means that no one should feel bad for telco. They are rolling in money.

tcope
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join:2003-05-07
Sandy, UT
kudos:2

said by morbo:

$30 a month per device for smart phone data is not cheap. It is actually very expensive, and that is what providers are using to build out their network. This artificial price floor that has been, conveniently adopted by almost all cell providers, means that no one should feel bad for telco. They are rolling in money.

You should mention this to Light Squared who's sole means of income was to establish Sprint's LTE network. You could point out where all of this money is that they are rolling in. Perhaps you could also call T-mobile, who's profits were down 50% from last year.

I pay $20/month for 5GB of data on Tmobile.

I'm not trying to stick up for cell carriers... I do agree that they stand next to the devil. But I don't agree that tethering does not cost them money... it's simply fact that it does. Every carrier bases their data rates on the fact that a vast majority of customers won't use the amount they advertise. The price is set on that lower amount. If they allowed tethering then they would need to spend more money to support that amount of usage.

If you argue that you are buying "unlimited", 5GB, 2GB, etc. of bandwidtht that you should be able to use it then you are also agreeing to paying more for your already over priced plan.

I should probably add that I get free tethering from T-Mobile under my $20/month plan. This is why I stay with them. So I might be a bit bias.


morbo
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said by tcope:

You should mention this to Light Squared who's sole means of income was to establish Sprint's LTE network. You could point out where all of this money is that they are rolling in. Perhaps you could also call T-mobile, who's profits were down 50% from last year.

Light Squared is not a telco provider, and T-Mobile's profits were down because customers abandoned ship rather than suffer through being stuck with AT&T. If you'd like to cherry pick another example that doesn't work then I'm happy to respond.

tcope
Premium
join:2003-05-07
Sandy, UT
kudos:2

Light Squared was to furnish Sprint with LTE... so it applies to my comment that providing data/LTE is _very_ expensive. In this case LS lost millions (billions?).

Why are TM customers going with other carriers? Could be their lack of coverage and qulaity of data signal. TM is needing to leave HPSA behind and jump up to LTE just to keep in business.



morbo
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If you don't remember, when AT&T announced its plan to buy T-Mobile, T-Mobile customers left in droves rather than endure being a customer of AT&T. AT&T service and the company is that loathed that people left T-Mobile rather than entertain the possibility of being an AT&T customer.


tcope
Premium
join:2003-05-07
Sandy, UT
kudos:2

You can argue that... but I suspect it has much more to do with all carriers now offering the iPhone. All carriers _except_ TM.


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