4 ms·

why is wireless data so bloody expensive? what are verizons margins on $20/1GB?

by exit 16y ago

DougWebb 16y ago
About $20/GB.
- exit 16y ago
  do share holders have any right to know the actual figure?
  - tibbon 16y ago
    Unless you've got a board seat, probably not. You get what's in their public disclosure for investors and that's about it.
jws 16y ago
Per wikipedia://GSM… GSM has used a variety of voice codecs to squeeze 3.1 kHz audio into between 6.5 and 13 kbit/s. So that is between 100k and 200k bytes per minute of speech. That gigabyte is the same radio load as 10000 minutes of talk time. Where does one get 10000 minutes of talk time for only $20? I think the question is Why is wireless voice so bloody expensive‽
- danilocampos 16y ago
  (Pedantic) Verizon uses CDMA, not GSM, but the question is still a fair one. I wonder how the numbers change for CDMA, if at all.
  - jws 16y ago
    Wikipedia says CDMA uses 3 rates, 8.5kbps, 4kbps, and 0.8kbs at the sender's choosing. It averages about 6kbps, so the numbers are about the same. There are improved codecs, but I can't tell if they are in use. The 0.8kbps is just for encoding background noise when the person is not talking.
- sparky 16y ago
  Obviously this doesn't even begin to explain it, but the realtime/quality-of-service requirements of voice are much more rigid, so it makes sense that voice would cost the carrier more per-bit than data. But still...
pchristensen 16y ago
That's called "monopoly rent". Normally competition drives prices down, but wireless data provision is an expensive and legally difficult business to get into. Is anybody selling 3G data for appreciably less? AT&T iPad rates are $15 for 250MB, $25 for 2GB.
- mike-cardwell 16y ago
  In the UK, on a non contract pay as you go service, I give T-Mobile £20 once every 6 months, and in exchange for that, they give me 1GB of 3G data per month.
- ahizzle 16y ago
  Just be glad you guys don't live in Canada (at least not when it comes to wireless data ;). One of the larger providers up here, Telus, charges $30/month for 500mb and $65/mo for 5 gigs... and that's all ON TOP of whatever your actual wireless plan is. Yick.

why is wireless data so bloody expensive? what are verizons margins on $20/1GB?

by exit 16y ago

why is wireless data so bloody expensive? what are verizons margins on $20/1GB?

DougWebb 16y ago

About $20/GB.

exit 16y ago
do share holders have any right to know the actual figure?
- tibbon 16y ago
  Unless you've got a board seat, probably not. You get what's in their public disclosure for investors and that's about it.

jws 16y ago

Per wikipedia://GSM… GSM has used a variety of voice codecs to squeeze 3.1 kHz audio into between 6.5 and 13 kbit/s. So that is between 100k and 200k bytes per minute of speech. That gigabyte is the same radio load as 10000 minutes of talk time. Where does one get 10000 minutes of talk time for only $20? I think the question is Why is wireless voice so bloody expensive‽

danilocampos 16y ago
(Pedantic) Verizon uses CDMA, not GSM, but the question is still a fair one. I wonder how the numbers change for CDMA, if at all.
- jws 16y ago
  Wikipedia says CDMA uses 3 rates, 8.5kbps, 4kbps, and 0.8kbs at the sender's choosing. It averages about 6kbps, so the numbers are about the same. There are improved codecs, but I can't tell if they are in use. The 0.8kbps is just for encoding background noise when the person is not talking.
sparky 16y ago
Obviously this doesn't even begin to explain it, but the realtime/quality-of-service requirements of voice are much more rigid, so it makes sense that voice would cost the carrier more per-bit than data. But still...

pchristensen 16y ago

That's called "monopoly rent". Normally competition drives prices down, but wireless data provision is an expensive and legally difficult business to get into. Is anybody selling 3G data for appreciably less? AT&T iPad rates are $15 for 250MB, $25 for 2GB.

mike-cardwell 16y ago
In the UK, on a non contract pay as you go service, I give T-Mobile £20 once every 6 months, and in exchange for that, they give me 1GB of 3G data per month.
ahizzle 16y ago
Just be glad you guys don't live in Canada (at least not when it comes to wireless data ;). One of the larger providers up here, Telus, charges $30/month for 500mb and $65/mo for 5 gigs... and that's all ON TOP of whatever your actual wireless plan is. Yick.