reply to franknalco
Re: For now
said by franknalco:Do you think it cost these companies $10 per GB to deliver data NOW? If they actually charged what data was, heck charge DOUBLE actual cost, prices would be much lower.
Hopefully at some point technology will make the airwaves the fattest pipe around, as data speed through the ether at multi-gig speeds. Then maybe we will see wireless data become commoditized and prices fall through the floor the way they are doing in the b2b wireline data sector. Hopefully....
With Verizon's new Share Your Wallet plan 1 GB cost $50, 10 GB cost $100. Somehow it costs Verizon $50 to deliver 1 GB but then another $50 to deliver 9 more GB? Does not compute. And we all know it doesn't cost Verizon anywhere near $100 to deliver 10 GB of data. If you need more than 10 GB you can purchase 2 extra GB for $10. So that's 5 per GB. And you know they are making mad profits on that. So if they are making huge profits at $5 per GB then 10 GB should be no more than $50 not $100.
Pricing is a usually a market driven force and not always a factor of margins or costs. Diamonds are found in the dirt, and sell retail for thousands of dollars, a nice mark-up if you can get it. T-shirts cost probably less than a dollar, and yet some sell for nearly $100. I used to buy a pair of jeans for $15 and am in shock to see some sell for over $200. Wireless broadband costs will come down only as a result of competition. Either more companies enter the wholesale market (which is doubtful considering the cost of entry), cost to deliver the service falls dramatically and someone hungry for market share cuts prices (read sprint or t-mobile), or there is a paradigm shift (like universal wi-fi availability for free). I personally feel that it is the second of the three (and there may be more drivers as well - like consumers turning to alternatives such as prepaid) that is the most likely. That only arises with fatter bandwidth and lower costs.