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Mobile networks - why so expensive?!
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Mobile networks - why so expensive?!

Mark_RMark_R Member

Hi,

Does anyone know why 3G/4G is more expensive in terms of bandwidth usage compared to normal cable internet? i understand that they have to build towers to broadcast the signals and that building those might cost a big initial investment but shouldn't that be a bridge crossed when it is all build up? if we take KPN in the netherlands as example, they have stable and great 4G network coverage agross the entire country, can't they start bringing prices down to allow more bandwidth consumption? online services like netflix, spotify, and anything else high bandwidth consuming gets more populair everyday - they should adapt to this?

I pay 35 euros/m for KPN's Mobile 4G Internet with a monthly bandwidth limit of 5GB - after i burned that up (in a matter of minutes) the speed will be limited to around 60kB/s (barely usable.) this looks to me like overcharging, or do they have a valid reasoning behind this pricing?

Any insights would be appreciated! thanks!!

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Comments

  • That's because they no longer make money on Texts (Because of Whatsapp mainly in NL) and on calls (Viber, Skype, and Whatsapp Calling now). They gotta make some money!

    Thanked by 1Chuck
  • cassacassa Member

    @Mark_R Having 1GB a month and 5000 text messages for free (3G) from SpeakUP here. Check out http://choozze.nu too (a subsidary of SpeakUP)

  • 4n0nx4n0nx Member

    joodle said: That's because they no longer make money on Texts (Because of Whatsapp mainly in NL) and on calls (Viber, Skype, and Whatsapp Calling now). They gotta make some money!

    this ^ They just want to milk the cash cow.

  • Because the usable wireless spectrum is a very limited resource and the operators pay a lot of money for this spectrum.

    Thanked by 3Mark_R Dylan Pwner
  • sc754sc754 Member
    edited April 2015

    I get unlimited 3 and 4g data on three UK (12.90 pounds pm), excellent performance and coverage too. I'm not sure why some providers have such high bandwidth costs, maybe they are trying to maximise profits on their existing infrastructure rather than being willing to invest in more of it. I would bet they don't make as much money from calls or texts anymore

  • vfusevfuse Member, Host Rep

    I have a 1+10GB (volskrant special from a few years ago) subscription at vodafone for 35 euro's per month. I'm not really sure what happens if I exceed the limit, i barely go over 1gb. Almost always using WIFI (500/500 at home now :).

    I think they got to this price to cover their loss on call/txt messages, it will take some time but eventually go down again.

  • linuxthefishlinuxthefish Member
    edited April 2015

    No issues in the UK, i have unlimited 4G (4gb tethering limit), unlimited texts and 200 mins for £17 a month on a 12 month contract from Three.

    Oh yeah, and I can use it in other countries with no extra charge!

  • TarZZ92TarZZ92 Member
    edited April 2015

    sc754 said: I get unlimited 3 and 4g data on three UK

    4G is very limited in the UK (LTE is not 4G but LTE-A is) on top of that three can offer the capacity. they have massive amounts of it. as do EE, apparently some of them are sending out near 2Gbps during peak times (Certain cell sites)

    On top of that EE & Three share the backhaul (Typically NTL and BtNet)

  • RadiRadi Host Rep, Veteran

    Here in Bulgaria, mobile bandwidth is very very expensive. I pay like $7 for: 300 minutes to carrier's network subscribers, 300 SMS to carrier's network subscribers and 300 MB of high-speed 3G(when I drain it, usually 1 hour), I get limited to 128 Kbps.

  • @rds100 said:
    Because the usable wireless spectrum is a very limited resource and the operators pay a lot of money for this spectrum.

    Ah, i see now http://www.fiercewireless.com/europe/story/kpn-vodafone-t-mobile-and-tele2-bid-38b-dutch-lte-auction/2012-12-14

    those are shocking amounts of money.

  • FrecyboyFrecyboy Member
    edited April 2015

    linuxthefish said: Oh yeah, and I can use it in other countries with no extra charge!

    So I could buy such a package and use it in Germany?

  • No,
    I got it for free.

  • TheKillerTheKiller Member
    edited April 2015

    €35/month for 5GB is so expensive. We pay $8 for 8GB monthly data in Pakistan.

  • sc754sc754 Member

    @Frecyboy said:

    No they only let you use it for a maximum of three months abroad I think, since it's intended to be free only for UK customers that travel abroad on holiday or for short periods

    Thanked by 1Frecyboy
  • TheKiller said: €35/month for 5GB is so expensive. We pay $8 for 8GB monthly data in Lahore, Pakistan. WaridTel LTE.

    2 things. 1. How many people have access to cell phones in Pakistan? The spectrum isn't very densely populated. 2. What do y'all use 8 gigs on?

  • @Rallias said:
    2 things. 1. How many people have access to cell phones in Pakistan? The spectrum isn't very densely populated. 2. What do y'all use 8 gigs on?

    Web browsing, Skype, most of time use as wifi hotspot for using at Laptop when out of home. More than 10 Millions have access to cell phones. They started LET and 3G last year.

  • @TheKiller said:
    €35/month for 5GB is so expensive. We pay $8 for 8GB monthly data in Pakistan.

    Sounds like a good deal! but is the network stable and fast too? because personally i am satisfied with KPN's performance and it is definitly worth the 35 euros/m just for being stable and good covered but i'd say that a 100GB bandwidth increase sounds more reasonable to me for the price im paying - specially in 2015. But yeah, i dont know much about the mobile networkings and all costs involved running it.

  • J1021J1021 Member

    Mark_R said: or do they have a valid reasoning behind this pricing?

    Each cell site has a finite amount of bandwidth available, limited mainly by the amount of spectrum it has available to it. The issue of spectrum isn't something that can be easily overcome. New cell sites need to be installed so that they're closer together and can broadcast weaker signals (cell sites can't overlap each other using the same frequencies, bringing them closer together allows more spectrum to be concentrated on a smaller area/number of users - think of it like Wi-Fi channels on your router, networks overlapping each other on the same channel causes interference) and that comes with the cost and hassle of sourcing a suitable location, coming to an agreement with the land owner on cost/space for the installation/location of that site, backhaul, expensive kit to be installed (100s of thousands ££) etc.

    I'll find the source in due time, there is a white paper produced by Siemens (again, IIRC) that suggests UK networks can handle 5GB of data per user per month due to spectrum constraints. Although average data use per subscriber is currently below that in the UK, if you've got a small group of users eating 50GB+ (it happens) every month in a small concentrated area, there's going to be contention issues on the local cells in that area.

    linuxthefish said: No issues in the UK,

    Not completely true. Three have major issues with capacity in some areas of their network (central areas in large cities), likely due to the unlimited tethering they offered some time ago easily allowing users to consume 10s of GB monthly.

    TarZZ92 said: apparently some of them are sending out near 2Gbps during peak times (Certain cell sites)

    Source please?

    Thanked by 1Mark_R
  • patrick7patrick7 Member, LIR

    Here in Switzerland we pay 15CHF (16 USD) for 1GB Internet.

  • BlazeMuisBlazeMuis Member
    edited April 2015

    I pay €25 a month for 1GB data and 150 Minutes calling + 100 Texts + an LG G2 (which i sold 2 weeks ago, using iPhone now). @ KPN as well. Switching to 3GB data soon for 5 euros more :P

    Without the phone i would have paid €12 a month less (€13) for 1GB, 150mins and 100 texts.

  • Everyone..... move to the UK and chose three

  • WilliamWilliam Member
    edited April 2015

    45EUR for Unmetered 100/50Mbit LTE in Austria - Cheap and works nicely.

    Thanked by 1inthecloudblog
  • kcaj said: Not completely true. Three have major issues with capacity in some areas of their network (central areas in large cities), likely due to the unlimited tethering they offered some time ago easily allowing users to consume 10s of GB monthly.

    I can't get much past 25Mbps on 4G even in a strong signal area, the best I've seen is 50Mbps compared to people like William getting 100/100 in AT...

    Guess you can't complain much for the price, i'm happy for now with them.

  • J1021J1021 Member

    linuxthefish said: the best I've seen is 50Mbps

    Three cap at 50Mb/s. I briefly saw speeds of ~80Mb/s when 4G was first introduced, the cap followed shortly after.

  • @Mark_R said:
    Sounds like a good deal! but is the network stable and fast too? because personally i am satisfied with KPN's performance and it is definitly worth the 35 euros/m just for being stable and good covered but i'd say that a 100GB bandwidth increase sounds more reasonable to me for the price im paying - specially in 2015. But yeah, i dont know much about the mobile networkings and all costs involved running it.

    So far better network in my city, Lahore. They have LTE coverage in limited cities and due to low number of users speed is pretty good.

  • Sprint Unlimited, $60usd. Slower side for being 4g when at home.

  • @Mark_R said:
    Hi,

    I pay 35 euros/m for KPN's Mobile 4G Internet with a monthly bandwidth limit of 5GB - after i burned that up (in a matter of minutes) the speed will be limited to around 60kB/s (barely usable.) this looks to me like overcharging, or do they have a valid reasoning behind this pricing?

    Any insights would be appreciated! thanks!!

    Move to Romania, I pay $5/m for 5 Gb
    :)

  • three Ireland unlimited 4G for €20 /Month

  • We always thought that develped countries have cheap internet with high speeds, but looks like its not that case. I don't know what is the reason for mobile networks but landline DSL/Fiber is cheap in developed countries.

  • u137u137 Member

    Tele2 in Sweden: 100GB for 40€ per month

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