Cell Phones: The providers are jacking up prices because they want more money

nitroz

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May 18, 2011
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Verizon is trying to stamp out unlimited data customers | Marketplace.org


To bring you up to date, there is a 4G network for cellphones. The 4G network was established for smartphones because they use more bandwith that what the 3G network can deal with, so the 4G network was created for the purpose to have enough bandwith for smart phones and be where they won't cause a strain.

Now since people are using more and more data, there is no difference on how it's effecting the 4G infrastructure, so whats the problem? Why are providers switching to limited data plans?

The answer is that they are implementing the new business model (based on how much data one will use) because it simply makes them more money. There is no need for it. They just want more money.

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If you have an unlimited data plan for your phone through Verizon, you should know that Verizon is trying to put a stop to that. The company announced a plan aimed at families who have multiple phones and tablets connected to data networks. All the calls and text messages you want for up to 10 devices, but limited use of the data network.

And as of June 28th, customers who want new phones will have to either go to a limited plan or pay the subsidy that Verizon normally pays, meaning a new iPhone could start at $649.

Roger Cheng of CNET says for individual users on unlimited plans now, the new limited plans will cost you more.

Roger Cheng: You'd actually be moving from an $80 plan roughly to a $100 plan at minimum.

Moe: How about if I'm part of a family? I've got kids and teenagers.

Cheng: Yeah, it gets a little bit more complicated. The more people you add to your plan, if you've got like a large family of five, and not all of them are heavy data users, then actually, you'll get decent data savings there.

If you want to stick with unlimited you can keep your same phone forever or switch to Sprint, which still offers unlimited for now.

I asked Karen Smith, a spokesperson for Verizon, why the company was doing this.

Karen Smith: We think that people need to go to a usage-based model for data and pay for the amount of usage that they're using so that everybody is able to access the network.

Moe: So is it a matter of being afraid that you're going to run out of room on the network if people are on unlimited plans?

Smith: No, not at all. In fact, that's one of the reasons that we so aggressively keep expanding our 4G LTE network which is an overlay to our existing 3G network.

I asked if the traffic isn't causing problems, is it that Verizon is trying to make more money to pay for building the new 4G LTE network?

Smith: We made a decision to change our pricing model, and what we've done is we've allowed people to share data among a number of devices regardless of how many people are on the plan, it's a device model. And we're charging on the megabytes of data that they use.

Moe: Why?

Smith: People have changed the usage of how they're using their devices. They're moving to using more data, and to ensure the speed and reliability and the access to the network, people are paying for the amount of data that they use.


Video Here ----> Verizon is trying to stamp out unlimited data customers | Marketplace.org
 
That's why I don't buy the newest phone or buy yearly plans.

I have a Samsung Intercept that you can buy anywhere for $99 or less. $25 a month at Virgin Mobile gives me unlimited Text and Internet with 300 anytime minutes.

I've NEVER run out of minutes either.
 
Consider the world you live in. Instant communication courtesy of the private sector in the greatest technoligically advanced Country in the world. My advice ...tell them how much you hate their product by smashing your cell phone.
 
Consider the world you live in. Instant communication courtesy of the private sector in the greatest technoligically advanced Country in the world. My advice ...tell them how much you hate their product by smashing your cell phone.

lol, I don't have a phone.
Havent had one for a year or more.


They arent worth the price for the shitty reception when in buildings and some places.
 
That's why I don't buy the newest phone or buy yearly plans.

I have a Samsung Intercept that you can buy anywhere for $99 or less. $25 a month at Virgin Mobile gives me unlimited Text and Internet with 300 anytime minutes.

I've NEVER run out of minutes either.

Sounds like a deal I have been looking for. Thanks.
 
The answer is that they are implementing the new business model (based on how much data one will use) because it simply makes them more money. There is no need for it. They just want more money.

And why is it bad to want more money? That's the whole point of a business: make as much money as you can. It's a thing I like to call Capitalism. If the consumers are willing to pay a higher price then the company should charge a higher price.

And there is a need for the new plan: it generates more revenue.
 
Smith: People have changed the usage of how they're using their devices. They're moving to using more data, and to ensure the speed and reliability and the access to the network, people are paying for the amount of data that they use.

Cell phone usage has come a long way in a short time. Most people using a smart phone aren't talking on it as much as they're using data, more and more and more data. What's wrong with paying for the amount of data you use?


That's why I don't buy the newest phone or buy yearly plans.

I have a Samsung Intercept that you can buy anywhere for $99 or less. $25 a month at Virgin Mobile gives me unlimited Text and Internet with 300 anytime minutes.

I've NEVER run out of minutes either.

^ This. I got VM about 7 or 8 years ago (for work purposes; work has disappeared at this point though) and am still on the 'minute to minute' plan. I simply don't use a cell phone all that much and refuse to switch to their cheapest plan, which now is $35/month for unlimited text and 300 talk minutes. When I first got it it cost a nickel to send or receive a text. Now, it's .15 for both. Waaaa, waaaaa they raised the price! No fair! Yeah, they're in business to make money if I don't like the price I can switch providers (but I won't find anything cheaper that fits my needs at this point).
 
Verizon is trying to stamp out unlimited data customers | Marketplace.org


To bring you up to date, there is a 4G network for cellphones. The 4G network was established for smartphones because they use more bandwith that what the 3G network can deal with, so the 4G network was created for the purpose to have enough bandwith for smart phones and be where they won't cause a strain.

Now since people are using more and more data, there is no difference on how it's effecting the 4G infrastructure, so whats the problem? Why are providers switching to limited data plans?

The answer is that they are implementing the new business model (based on how much data one will use) because it simply makes them more money. There is no need for it. They just want more money.

-------------------------------------------------------------------------------------------


If you have an unlimited data plan for your phone through Verizon, you should know that Verizon is trying to put a stop to that. The company announced a plan aimed at families who have multiple phones and tablets connected to data networks. All the calls and text messages you want for up to 10 devices, but limited use of the data network.

And as of June 28th, customers who want new phones will have to either go to a limited plan or pay the subsidy that Verizon normally pays, meaning a new iPhone could start at $649.

Roger Cheng of CNET says for individual users on unlimited plans now, the new limited plans will cost you more.

Roger Cheng: You'd actually be moving from an $80 plan roughly to a $100 plan at minimum.

Moe: How about if I'm part of a family? I've got kids and teenagers.

Cheng: Yeah, it gets a little bit more complicated. The more people you add to your plan, if you've got like a large family of five, and not all of them are heavy data users, then actually, you'll get decent data savings there.

If you want to stick with unlimited you can keep your same phone forever or switch to Sprint, which still offers unlimited for now.

I asked Karen Smith, a spokesperson for Verizon, why the company was doing this.

Karen Smith: We think that people need to go to a usage-based model for data and pay for the amount of usage that they're using so that everybody is able to access the network.

Moe: So is it a matter of being afraid that you're going to run out of room on the network if people are on unlimited plans?

Smith: No, not at all. In fact, that's one of the reasons that we so aggressively keep expanding our 4G LTE network which is an overlay to our existing 3G network.

I asked if the traffic isn't causing problems, is it that Verizon is trying to make more money to pay for building the new 4G LTE network?

Smith: We made a decision to change our pricing model, and what we've done is we've allowed people to share data among a number of devices regardless of how many people are on the plan, it's a device model. And we're charging on the megabytes of data that they use.

Moe: Why?

Smith: People have changed the usage of how they're using their devices. They're moving to using more data, and to ensure the speed and reliability and the access to the network, people are paying for the amount of data that they use.


Video Here ----> Verizon is trying to stamp out unlimited data customers | Marketplace.org

The call for Taxpayer Subsidizing of all the "poor people" who cannot surf the Web from their IPhones in 3......2......1......
 
That's why I don't buy the newest phone or buy yearly plans.

I have a Samsung Intercept that you can buy anywhere for $99 or less. $25 a month at Virgin Mobile gives me unlimited Text and Internet with 300 anytime minutes.

I've NEVER run out of minutes either.

Yeah but your unlimited internet is unlimited in speed no longer. I have the same plan and after 2.5 GBs of use per month I'm slowed down from 3G to 1G. :mad:
 
That's why I don't buy the newest phone or buy yearly plans.

I have a Samsung Intercept that you can buy anywhere for $99 or less. $25 a month at Virgin Mobile gives me unlimited Text and Internet with 300 anytime minutes.

I've NEVER run out of minutes either.

Yeah but your unlimited internet is unlimited in speed no longer. I have the same plan and after 2.5 GBs of use per month I'm slowed down from 3G to 1G. :mad:

If you go Wi-Fi around the house, does that help?
 
That's why I don't buy the newest phone or buy yearly plans.

I have a Samsung Intercept that you can buy anywhere for $99 or less. $25 a month at Virgin Mobile gives me unlimited Text and Internet with 300 anytime minutes.

I've NEVER run out of minutes either.

Yeah but your unlimited internet is unlimited in speed no longer. I have the same plan and after 2.5 GBs of use per month I'm slowed down from 3G to 1G. :mad:

If you go Wi-Fi around the house, does that help?

Yeah, but I did something a while back, don't know what so now it locates my wifi then immediately closes out and starts looking for another one. I've reentered my homegroup info and password but it still wont work. :dunno:
 
How can we expect economic growth if we do not pay more for what we already buy?

And besides there is not a completely seperate 4G network, the regular internet is also used.
And the increase of mobile data devices is choking it down.
 
How can we expect economic growth if we do not pay more for what we already buy?

And besides there is not a completely seperate 4G network, the regular internet is also used.
And the increase of mobile data devices is choking it down.

They had a good enough profit margin as it was before.

And there are plans that can limit how much is used when the 4g network is not available.




These providers are posting constant profits and STILL are jacking up the prices. Thats not economic growth when they are stuffing their pockets as much as they can.


4G was made to combat that problem, so it is not a relevant issue as long as 4g exists.
 
How can we expect economic growth if we do not pay more for what we already buy?

And besides there is not a completely seperate 4G network, the regular internet is also used.
And the increase of mobile data devices is choking it down.

They had a good enough profit margin as it was before.

And there are plans that can limit how much is used when the 4g network is not available.




These providers are posting constant profits and STILL are jacking up the prices. Thats not economic growth when they are stuffing their pockets as much as they can.


4G was made to combat that problem, so it is not a relevant issue as long as 4g exists.



It is not a question of if the 4G net is not available. You go to an internet site you go on the regular internet. Period.

4G is just cell to cell or cell to the net. It does not have webpages, unless maybe one for your cell provider.

http is the net not 4G.
 
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The answer is that they are implementing the new business model (based on how much data one will use) because it simply makes them more money. There is no need for it. They just want more money.

And why is it bad to want more money? That's the whole point of a business: make as much money as you can. It's a thing I like to call Capitalism. If the consumers are willing to pay a higher price then the company should charge a higher price.

And there is a need for the new plan: it generates more revenue.

the reason its bad is because they are not making money by increase production or being innovative but by exploiting their monopoly
 
This is not new, all companies do this when they have a monopoly. We don't need instant access to communication and information. Look at the number of deaths and it climbing that results forom driving and texting. I am guessing that someone will read this blog while driving.
 
American consumers are crack whores when it comes to phones. They'll pay what they're charged, because they need the latest and greatest at any cost.

Other countries don't pay as much for unlimited data and minutes like we do.

It was fucking horrible finding myself an affordable plan with an affordable phone, for how infrequently I would use a phone.
 

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