Really Unlimited 4G Wireless for $30 Dollars? Triple Play for $45? How Much are You being Overcharged? #IRREGULATORSvsFCC

  • Overcharging on America’s Triple Play is costing customers $70-$155 a month extra, not counting add-ons.
  • We estimate that the US unlimited wireless customers are being overcharged $50-$75.00 a month, not counting the additional 500–1000GB of a truly unlimited service that you did not receive.
  • This comes to an average of $873 a year extra
  • There is severe customer gouging in the low-end wireless market where a 1GB “data booster” from Verizon costs $15.00; not counting taxes. We estimate that while the average basic wireless plan can be $30-$60 a month, when there are plans around the world that have 100GB for $8.27, and services at $7.50 that offer the same amount of GB, we estimate that the overcharging is $20–50 a month.
  • This comes to an average of $654 a year extra.
  • Overcharging by Capping GB Usage. It is clear something is very wrong when other countries have unlimited usage of 500–1000GB as standard, and the US has been capped at 25–75GB, and then the service is slowed to being almost unusable.
  • NOTE: The numbers for the United States are not adjusted for the added taxes, fees and surcharges in the US.
  • US average unlimited plans (not the most expensive) were around $91.50 counting taxes, fees and surcharges and the average came with 36GB before they slow to a crawl.
  • However, the standard has been that the services crap out after around 25GB.
  • With this generous accounting, the US unlimited costs $2.54 per GB.
  • Using a blended model of Rewheel and European Commission provided data, the average monthly cost that would match the US average costs comes to around $17.50, and delivers an average of 75GB (much more than the US 22GB.)
  • The cost per GB also varies but with plans costing over $40, we found that the cost per gig averaged around $.10-$.15 per GB; we use $.13 as compared to the US $2.54 per GB.
  • NOTE: However, different reports on wireless pricing can have averages of $.27-$.54 per gig, and different price ranges can have 1 gig cost dollars, depending on the countries’ competition.
  • America’s low end data costs are so ludicrous as compared to OCED that it demands immediate investigations.
  • A basic plan, which comes with 2G or 4G or 8G, averaged $15.50 per GB and $15.00 if you start to run out or go over your allotted amount.
  • Wireless is a Wired service. Your wireless services do NOT go into the ‘ether’ or to some satellite; your call or data first goes to a hot-spot or cell site, then travels the rest of the way over a fiber optic wire.
  • The state-based utility wires are the guts of all services — wireless, wireline, fiber optics and copper. AT&T, Verizon and Centurylink control the wired state utility networks, including the “Business Data Services”, sometimes called “backhaul”, which are the wires, the guts of the networks, but they are also the basis of wireless in America.
  • Obscenely Profitable: These state-public utility-wired network ‘backhaul’ services are obscenely profitable because they are kept at inflated prices, which is then the baseline for wireless, broadband and internet services.
  • The prices are kept inflated. These 3 companies control the wireless business and most of the state-based wired utility infrastructure. Sprint, etc., is independent and so it rents the networks at these inflated rates — and this is the base-line.
  • Massive financial cross-subsidies: AT&T and Verizon’s own wireless services were mostly built by cross-subsidies, charging local phone customers and the wired-state-based utility for the construction expenses.

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bruce kushnick

bruce kushnick

New Networks Institute,Executive Director, & Founding Member, IRREGULATORS; Telecom analyst for 38 years, and I have been playing the piano for 63 years.