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Thread: Video Succinctly Answers Why Carriers Use Data Caps - Hint: Numbered Paper

  1. Editor in Chief
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    #1

    Video Succinctly Answers Why Carriers Use Data Caps - Hint: Numbered Paper


    Just in case you didn't already know, and/or wanted confirmation for your theories, a blogger has gone to the trouble of sharing an informative and fairly entertaining video explaining why Data Caps from ISPs suck, and why carriers use them. One of the most fascinating details included in this video is how the blogger pokes gaping holes in the carriers' argument that network congestion is the reason they do it. He makes it painfully obvious why this "excuse" is bogus, and points his gaze squarely at the real culprit.

    I'll give you a hint... it rhymes with funny and does nothing until you move it to someone else. Share your thoughts on this intriguing topic. How important is it to keep the internet as open and as inexpensive as possible? Is there a way we can cut back on corporate greed while still maintaining free enterprise?

    Source: AndroidCentral
    Javaknight and jeems like this.
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    #2
    is it....... a bunny?

    a nose that's runny?

    a nice day that is sunny?

    surely, it can't be about the money?
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    That's funny, honey, trying to be punny.

    Just puppy footing around. (auto correct)
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    #4
    I've heard it explained like this, I don't know how correct it is but it sounds right to me.

    People are simply "talking" less. Providers used to sell minutes of voice time and they tossed in data to entice users. Now, they sell amounts of data and toss in voice. The providers have to find a way to get back the huge profits they enjoyed selling 1500+ voice minute plans. 50 dollar a month unlimited data plans that people use to VOIP and text on is not near as profitable a 150 dollar a month voice plans.
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    #5
    I really like this explanation makes sense!
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    Bean counters doing what they do best.
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    It always makes me laugh how people cry greed and being charged too much as they shell out the cash. Clearly most people never took economics, or simply don't understand it. Companies are in business to make a profit. Shareholders (investors) demand a return. That's how the economy grows.

    These networks require(d) massive amounts of capital. If they were to just give it away because "it's the right thing to do" they never would have raised the capital to do it in the first place.

    You really don't need a data plan on a cell phone. If it hurts that much, don't pay it.

    And what most people don't realize is in most cases the carriers pay cable companies for the pipes that connect you to the internet - their towers just connect you to the pipes. If they offered unlimited tethering and people start ditching their home broadband and cable, then those companies would have to recover their losses by jacking up what they charge VZW, AT&T, etc.
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    Quote Originally Posted by kodiak799 View Post
    It always makes me laugh how people cry greed and being charged too much as they shell out the cash. Clearly most people never took economics, or simply don't understand it. Companies are in business to make a profit. Shareholders (investors) demand a return. That's how the economy grows.

    These networks require(d) massive amounts of capital. If they were to just give it away because "it's the right thing to do" they never would have raised the capital to do it in the first place.

    You really don't need a data plan on a cell phone. If it hurts that much, don't pay it.

    And what most people don't realize is in most cases the carriers pay cable companies for the pipes that connect you to the internet - their towers just connect you to the pipes. If they offered unlimited tethering and people start ditching their home broadband and cable, then those companies would have to recover their losses by jacking up what they charge VZW, AT&T, etc.
    Most people miss this concept in economics 101.

    Just puppy footing around. (auto correct)
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    #9
    Quote Originally Posted by kodiak799 View Post
    It always makes me laugh how people cry greed and being charged too much as they shell out the cash. Clearly most people never took economics, or simply don't understand it. Companies are in business to make a profit. Shareholders (investors) demand a return. That's how the economy grows.

    These networks require(d) massive amounts of capital. If they were to just give it away because "it's the right thing to do" they never would have raised the capital to do it in the first place.

    You really don't need a data plan on a cell phone. If it hurts that much, don't pay it.

    And what most people don't realize is in most cases the carriers pay cable companies for the pipes that connect you to the internet - their towers just connect you to the pipes. If they offered unlimited tethering and people start ditching their home broadband and cable, then those companies would have to recover their losses by jacking up what they charge VZW, AT&T, etc.
    there are few none data plans around. outside track phone and what not I cant think of anything off the top of my head that will sell you a damn cell phone that does not require data. So in a way this goes out the window. Yes you can claim there are ways out there. However you have to look for it and its not always easy to find. I mean hell Lets look at T-Mobile; they are almost as cheap as you can get, yet their cheapest plan? unlimited data(4~5GB at 4g speeds) 150min of talk time for $30 a month.

    yet their talk plans are up at 50~60(with capped data) something is just not right, the idea of economics is not just S=D. As you should also understand prices should drop when there are a few strong players in the game(forget the name been way to long) as they should be scared to lose their customer base. Yet this is far from the truth. The reason? in many areas there is only one or two mobile network providers.

    So yes we have the 4 main players(at some point this is going to be 3 lets not play ourselves) but in any given area outside a major city we have 1~2. So from a national standpoint we should have low pricing and very little change in that pricing. But in a given area this does not hold true.

    Example: I live right outside NYC. One would think we would have a fair amount of providers to pick from, right? wrong, while yes we have t-mobile, sprint, Verizon and AT&T in my area the coverage for sprint blows(no 4G and 3G is god slow with dead spots inside most buildings for calls even) and T-Mobile is nothing to right home about. This leaves us with two options if you want a fully functioning phone. And that just so happens to be the 2 most expensive big dogs in town.
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    #10
    "What is... Money?"

    Yes!?!?

    Now where's my cool million $$....

    Great video/article, and blaming money is always a good place to start when companies do things, you can never go wrong with that answer.
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