December 6, 2010

Why are Mobile Data Plans So Complicated?

Anyone who uses Internet on their phone has wondered, why are Mobile Data plans so complicated and so expensive?

The simple answer, of course, is that it helps carriers extract the maximum money from their customers today, to the detriment of the customers. The carriers want you to subscribe to their service but then make it so expensive that it discourages you from using the service. In the Carriers dream world it would be “pay us, but don’t use us”. Verizon’s 4G Internet pricing is a perfect example – the ads entice you with “watch a HD movie over the 4G connection” but then forget to tell you that it may cost $50 per movie.

Of course, Verizon is not the only one with such pricing – AT&T, T-Mobile, Sprint all have their own complicated, expensive plans.

Galen Gruman at Infoworld attempts to shine a light on these mobile data plans and compares mobile data plans from AT&T, Verizon, Sprint, and T-Mobile.