Monday, March 09, 2009

Dissecting The Mobile Phone Plan Markup | Shrinkage Is Good:

Mobile phone companies provide the basic service of transferring information, whether that be in the form of phone calls, text messaging or internet data plans. However, the method in which they charge for these services is not so basic. By coupling various services into packages and failing to disclose specific details, these companies make it difficult to understand exactly what you are paying for, and exactly how much you are paying for it. With messaging and phone calls, both the sender and the recipient are being billed, doubling the charge on the transfer of the same data. When we took a look into exactly how much data is being transferred, and how much it is costing the customer, we found that each service is each being charged at relatively high and largely different rates.

The reason that messaging is 412,500 times more expensive per gigabyte than your standard ISP has to do with the over-regulation (and subsequent regulatory capture) of the phone carriers.



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