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U.S. 4G LTE more expensive than EU 4G LTE


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http://www.technobuf...ns-study-finds/

 

Brenda Raney, a spokesperson for Verizon Wireless, told The New York Times that the plan cited in the report also includes unlimited voice minutes and unlimited text messaging. The real figure, she estimates, is around $5.50 per GB of data. Still, as The New York Times notes, that’s twice what Europeans pay on average for the same data. An analyst who participated in creating the Wireless Intelligence study said that U.S. rates are higher because of those packaged voice/minute/data deals. Also, European carriers allow consumers to buy LTE on pay-as-you go plans. In addition, the competition in Europe is much greater. There are only three major wireless carriers with LTE Networks, but Verizon and AT&T have the largest. So, essentially, they have the power to drive higher prices.

That could change, of course, once Softbank acquires a 70% share in Sprint. With new capital, Sprint could expand its 4G LTE network to compete more efficiently against AT&T and Verizon Wireless. T-Mobile, too, has plans to roll out its 4G LTE data network. With more competition in the market, prices could drop. Still, we don’t have the same level of LTE operators that Europe does. The New York Times said that there are 38 Wireless Carriers in Europe selling 4G LTE services.

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What they don't mention is that in Europe although data is cheaper, the carriers are not paying a subsidy for phones either. Competition is mentioned in the article, but they don't say how that competition is arrived at. Most of those European carriers use GSM so when you buy a phone unlocked you can take that phone with you to another carrier. Thats a huge reason why that model will not work here. I would never spend 400-500 for a phone and not be able to use it anywhere but one carrier in the US and I'm sure others wouldn't either. I love Sprint and would likely never go to another carrier but I need to know that I could with the phone I just paid $400 dollars for

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What they don't mention is that in Europe although data is cheaper, the carriers are not paying a subsidy for phones either. Competition is mentioned in the article, but they don't say how that competition is arrived at. Most of those European carriers use GSM so when you buy a phone unlocked you can take that phone with you to another carrier. Thats a huge reason why that model will not work here. I would never spend 400-500 for a phone and not be able to use it anywhere but one carrier in the US and I'm sure others wouldn't either. I love Sprint and would likely never go to another carrier but I need to know that I could with the phone I just paid $400 dollars for

This is an excellent post. I didn't want to come across as if I was complaining about pricing, I just thought it was interesting but I never brought that into perspective.

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