US Customers Pay 10 Times More for LTE Than Those in Sweden; 3X More Than All Europe

Discussion in 'Android News' started by dgstorm, Oct 16, 2012.

  1. dgstorm
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    dgstorm Editor in Chief Staff Member Premium Member

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    A new study performed by the research branch of the GSM Association based in London, shows a disturbing trend here in the United States. Apparently, US consumers pay a lot more for their data than folks in Europe.

    The study took a look at the average price that US consumers pay for LTE service compared to Europe as a whole and to Sweden in particular (because that is where LTE was first introduced). The study used only Verizon Wireless for their baseline since it is the largest LTE network in the US. The study found that there are 27 million LTE subscribers in the world, and about half of those are all in the US. Also, South Korea is the second-largest market for LTE service. They have 7.5 million subscribers. Japan comes in third with 3.5 million users. Finally, LTE service is in 21 different European countries, and Germany has the most throughout Europe.

    The disturbing info for US customers is that, according to their results, customers in the States pay roughly 3 times more than all of Europe, and over 10 times more than folks in Sweden. Here's a quote with more details,

    When trying to disseminate this data, these results seem counter-intuitive. You would think since there are so many more customers wanting LTE in the US, that it would drive the price down and they would be cheaper. The main reason that is not the case is that in Europe there are far more carriers that offer the service than in the US. In fact, Europe has the largest number of operators selling LTE service with 38 of 88 total global operators.

    Hmmm... so that's what a Monopoly looks like. This Softbank buyout of Sprint could be a very good thing for US consumers.

    Source: NYT
  2. zomnomnombie
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    zomnomnombie Active Member

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    I say we just subsidize phones so much that the carriers pay us $100 to give us a new phone and then we all just pay a flat $199 a month per phone. Since we all love that $199 price point right. ;)

    I hope one of the big carriers starts offering subsidy free plans soon.
  3. diablo81588
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    diablo81588 New Member

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    Re: US Customers Pay 10 Times More

    This is kind of stupid. It costs Verizon billions of dollars to roll out LTE across the united states. They have by far the most LTE coverage in terms of subscribers, so why would the price be cheaper? Verizon doesn't charge separately for LTE data, so why would the price go down? I could understand if the network was fully deployed, but there's still many areas without LTE altogether, and the markets that have access are not fully covered.

    Sent from my DROID BIONIC using Tapatalk 2
  4. johnomaz
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    johnomaz Well-Known Member

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    I don't think subsidies are the problem. I think it is greed pure and simple. Supply and demand doesn't apply to certain things such as cell service. They can say that people hog all the data and so data caps had to be put in place, thats bull. The companies have realized that they have us by the proverbial balls when it comes to our phones and they can charge whatever they want and we will continue to pay. One company says "Hey, lets charge more" /cough Verizon and when no one leaves in them any quantity that matters, every other company does it too.

    I do not have a home phone so yes, I need a cell phone. I have a wife and two kids so if anything happens, I need to be able to be reached. However I'm getting kind of tired to the point that I may get a phone that I can pay for 500 minutes and they don't expire and I can put more on it when I need to. Then I'll keep my deactivated S3 for use on Wifi when I have everywhere and not worry about mobile data as I tend to have wifi wherever I'm at, home/work/families houses. Sadly most teenagers are spoiled brats and their parents buy them their new iPhones so they can text all day long and you have people that think they are the most important person in the world and talk on it constantly no matter what they are doing. I work at a high school and if students put as much effort into their school work as they do trying to text without getting caught, they'd all have straight As. And don't even get me started on the ******* teachers who can't put the phone down to teach. Frankly cell phones are a huge problem in today's society and even though I am an enthusiast and I have one, I have no problem putting it down when I'm at work or driving or any other time you don't need to be on it.
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  5. avgilbert
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    avgilbert New Member

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    "Supply and demand" absolutely applies! As customers, we are paying for the service we receive. We are welcome to purchase from another provider or choose not to carry a cell phone at all. Granted, Verizon has a de facto monopoly in some areas, but more often than not, there are other carriers (in the US) to choose from. I'm not saying Verizon isn't making money, but they are charging what the market will bear. Also, we should keep in mind that their expansion costs are likely far higher, consider that the country of the United States is roughly 2 and a half TIMES the size of the continent of Europe.

    Just out of curiosity, does anyone know if government regulations come into play? I would assume Europe would be more heavily regulated, but if I'm mistaken and it's the US, then that would add considerable cost as well, which obviously has to be paid for by the end user.
  6. npro1464
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    npro1464 Member

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    They already do: Monthly 4G Prepaid Plans | Compare Prepaid Data Plans | T-Mobile
  7. tgyberg
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    tgyberg Well-Known Member

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  8. sweeeeet
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    sweeeeet Well-Known Member

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    I can help lower the average by using 10000gb per month on my unlimited plan lol

    Sent from my DROID BIONIC using Tapatalk
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  9. zomnomnombie
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    zomnomnombie Active Member

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  10. Quantumstate
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    Quantumstate New Member

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    Well THAT'S WHAT THEY GET FOR BEING SOCIALISTS!!




    Uhm, wait a minute...
  11. LoneWolfArcher
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    LoneWolfArcher Well-Known Member

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    First world problems.
  12. pc747
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    pc747 DF Administrator Staff Member Rescue Squad

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    It comes down to this: Verizon can charge the price because we are willing to pay for it. You want the verizon's att's to drop in price then every one start going to metro, cricket, and virgin mobile. Its like they say it is worth what the customer is willing to pay. We love having data on the go that is fast and reliable along with a strong network and we are willing to pay the cost to have it. As much as we complain about it we continue to write the check. So what do verizon do they have a csr who answers the phone and take the venom of customers complaining about the price and then tell then how reliable the network is which make the customer continue to write the check. It is sort of like the argument about walmart. I know people who complain about how walmart is tearing down the fabric of our country with their cheap Chinese imports and low wages and yet people continues to shop there. Until people stop spending hundreds of dollars at a time at walmart it will continue. But it comes to this we like walmart because every thing is in one place so I no longer have to burn gas going to different stores to buy food, clothes, electronics, etc. I can go to one store and pay low prices to shop for groceries, pet food, clothes, christmas gifts, home improvement items, and electronics and that trumps all the other issues.
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  13. AdamPA1006
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    AdamPA1006 New Member

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    I dont think Verizon is any greedier and any of you guys. We would all be doing the same thing if we were in charge. Who wouldnt try to make the most possible? They do provide a great service though. Thats why most of us will not drop it.
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  14. geoff5093
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    geoff5093 New Member

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    For one, the U.S. has far more area to cover, most of which has very few customers. Whereas Europe and Japan are for the most part pretty densely popular. If you live in the city and don't need parts of the country covered where you will never, ever go, then switch to T-Mobile. You are paying for nationwide service with Verizon.
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  15. THE WITCH
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    THE WITCH New Member

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    Some of us users don't have much of a choice in carriers. Verizon has the best coverage in my areas. I would not get any coverage in many spots wit AT&T. That doesn't mean that I like paying high monthly fees. :icon_evil:
  16. pc747
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    pc747 DF Administrator Staff Member Rescue Squad

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    Trust me when I say I understand completely. But again just like with any business they judge success based on people writing them checks. The moment you say "I will write this check to that carrier over there because I like what they do" that is when you will see change. It is the reason verizon did not take the route att did with people tethering on unlimited data. At&t sent out letters and started messing with the customer and as a result they had people leave. Vzw had the same problem but took the approach of locking bootloaders, hiding apps and making users who re-sign accept the terms of their new tiered plan.
    Witch if you are willing to endure metro or cricket and find other means to use data (wifi in restaurants and home internet) then you have a way out. The reality is we dont want to. I know I don't. As much as I hate the high prices I still pay just so I can watch a youtube video at work with out buffering.
  17. liftedplane
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    liftedplane Well-Known Member

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    you aren't seriously defending verizon and their price gouging are you? the reason they charge so much isn't because it rolled out LTE first and it's cost billions. it's because they have no real competition and therefore if you want the best you either have to suck it up and pay their prices, or go to another company that is sub par. This is what happens when there's no viable competition.

    I really have nothing else to say, it amazes me what consumers in this country have been taught to worship, it's all about the effing almighty profit, not my profit but corporate profit. It's the same with gas prices... there is no reason regular unleaded should be 4.20 where I live, consumers just accept whatever corporations say... that's how we've been trained.
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  18. Tillmorn
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    Tillmorn Member

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    I would like to see a price comparison with 3G data service from a couple of years back. I know it is not near as relevant, but I have a feeling we would see an ever larger gap between U.S. prices and European.

    Oh hey, further down in the original article:

    "The LTE comparison mirrors the trend for other types of mobile services, like 3G, which also tends to cost more in the United States.

    U.S. consumers who bought mobile service through contracts spent $115 a month for 3G service, according to a survey conducted in May and June of 6,000 consumers in 12 countries by Ernst & Young, an accounting firm. In the Netherlands, the average was $51; in Britain, $59."

    I love how the Verizon rep tries to justify the pricing by talking about the unlimited talk/text angle. If this study is based off of their new shared plans, any semi-intelligent person would quickly understand just how much Verizon is taking advantage of its customers on the data front. Saying unlimited talk/text is a great selling point, especially for those who are new to the smartphone world and are ignorant of just how fast a person's data cap can be reached, especially when it's shared between multiple devices. God forbid one of them decide to download a game with a large install. There goes half of the month's data plan right there! And sure, the European plans do not include the unlimited bundles, but those prices are relatively cheap in comparison as well.

    I hate to admit it, but when upgrade time comes around again for my family, if Verizon is not willing to work with me on the unlimited data front (since we were promised staying in as grandfathered unlimited) I will most likely jump to T-Mobile's pre-paid plan and pick up an unlocked Nexus device. Or maybe the latest offering from Moto at that time. Since I'm generally in a Wifi area, I'll just set up Google Voice (finally) and be happy with the $30 a month for relatively decent coverage when I'm not in those areas.

    Actually, now that I'm thinking about it. Say a person were to kill their plan. Could they, in theory, set their device up as a home/work number through Google Voice as long as their is a Wifi connection?
  19. pc747
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    pc747 DF Administrator Staff Member Rescue Squad

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    https://play.google.com/store/apps/details?id=com.gvoip&hl=en

    been using that awhile. issue is the echo.


    As far as vzw they are going to voice over lte so of course they are offering unlimited data and text. Especially when they are trying to go all lte in the future. You have to slowly start the migration to lte so they can make a killer. You know how much data voice over ip uses.

    [​IMG]
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  20. burtonboarder
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    burtonboarder New Member

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    I'm liking where this is going


    Sent from my DROID RAZR using Tapatalk 2
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