July 30, 2011

Why Is Verizon Mobile Data Price 4x Others?

Why is Verizon mobile data price 4x others? Why is it so prohibitively expensive for consumers?



A comparison of Verizon vs Indian mobile operators

Verizon mobile Data price    10 GB Data for $ 80    US

Idea 3G mobile Data price    10 GB Data for INR 1,250 (about $28)
Reliance mobile Data price    10 GB Data for INR 1500 (about $34)

While even the Indian 3G prices are high in absolute terms, they are much better than Verizon’s prices. The lower prices encourage users to use mobile Internet.

In the US, AT&T and Verizon dominate the mobile market. In this duopoly, the prices do not go down only up. AT&T mobile data price is even higher than Verizon’s. So, perhaps a better question is, why are US mobile data price 4x other countries?

The situation is a little better in the US for wired Internet as shown in the list of fastest broadband worldwide but, then this question why is Internet costs going up?