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Why Your Cell-Phone Bill Should Be Going Down—But Isn't

Why Your Cell Phone Bill Should Be Going Down But Isn t ReadWrite


Steve Shaw from Juniper Networks put it in perspective to cellular-focused publication RCR Wireless last year: "Today a gigabit of traffic on Verizon’s network is something on the order of $7.00, $7.50 a gig, in some markets it’s as low as $1.00 or less, and so in those particular cases just pricing based on bandwidth isn’t enough,” Shaw said.

Essentially, the U.S. carriers are able to gouge consumers even though the cost per bit on their networks is technically going down over time. The carriers will contend that they need to charge what they do because they investing in the infrastructure of the country. But once all the base stations are built, all the backhaul is optimized, will prices actually go down?

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It's not just wireless carriers but cable and satellite providers too.

The industry needs someone like Google Fiber to put downward price pressure on it.

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