Why are phone plans so expensive?

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JMapleton

Diamond Member
Nov 19, 2008
4,179
2
81
I do think the phone companies have brainwashed everyone into thinking they need $300 smartphones with $90/month packages. Much in the same way people think they need $30,000 cars.

For the average person, $90/month is a lot of money. Just to talk on your phone? What a waste.
 

gaidensensei

Banned
May 31, 2003
2,851
2
81
Can you actually unlock an Iphone and use it on a verizon network? I'd love to do that for my wife and not worry about the $30/mth dataplan.
Nope, afraid not. Verizon and sprint are on CDMA networks. CDMA phones are hard coded by ESN, so you have to (illegally) call up and get your ESN changed, but GSM (read att/t-m) phones aren't bound by ESN, they use SIM.

The whole thing between ATT/T-mo, Rogers in Canada, etc, or going abroad is the availability of GSM SIM cards, allowing for a quick and easy shift between phones. This also lets people manipulate their plan features when using phones that were originally tied to the other network. The only major cost benefit, that I'm aware of, is that you can save $15 per phone on a plan by dropping the 3G to EDGE unlimited data plan.

Personally, I can't find a worthy difference between 3g and EDGE because I never use that much bandwith on my phone and often end up in places with limited 3g coverage, this is with ATT's dominating 3g coverage over the nation.

I'm not sure how this plan pricing works with T-m, I was on them in the past from 2000-2003 and have been with ATT since then.

At most, you can just unlock the iphone and use it as a ipod-like device.
 

HAL9000

Lifer
Oct 17, 2010
22,027
3
76
Cut back on the anytime minutes? Get rid of the 200MB data....

I can't believe all the people with smartphones. They seem terribly overrated and not worth the cost.

I use my smartphone for everything, I need the amount of mobile data I have, it's the most important computer I own.
 
Dec 10, 2005
24,460
7,397
136
I couldn't give a shit about 3G data access. For me it was more the interface, apps and web browsing over wifi that I enjoy with the phone. I had to pay $30 a month for that convenience though. It beats carrying both a phone and an ipod though.

I guess I'm just old fashioned - I have a basic flip phone. I only care about making phone calls or text messaging. I don't mind carrying an mp3 player when I want music - it's not that big (Sansa Fuze) or that much of an inconvenience.
--

I am also a graduate student and near a computer almost all the time, so being able to get data on my phone is superfluous.
 

ponyo

Lifer
Feb 14, 2002
19,689
2,811
126
Page Plus. 1200 minutes voice, 2000 texts, 100 mb data for $30 a month. Taxes, fees are all included. Uses Verizon network so you should no problem with coverage. Virgin is even cheaper at $25 a month and uses Sprint. You have choices however limited that may be. Give up your iPhone if you're serious.
 

vi edit

Elite Member
Super Moderator
Oct 28, 1999
62,403
8,199
126
For the average person, $90/month is a lot of money. Just to talk on your phone? What a waste.

It used to cost me almost $45 a month to have a phone hang on the wall. And it didn't let me use it on the road, take pictures, play music in my car, check my work email or control my home audio system. $90 for that seems like a bargain.
 

gaidensensei

Banned
May 31, 2003
2,851
2
81
I guess I'm just old fashioned - I have a basic flip phone. I only care about making phone calls or text messaging. I don't mind carrying an mp3 player when I want music - it's not that big (Sansa Fuze) or that much of an inconvenience.
--

I am also a graduate student and near a computer almost all the time, so being able to get data on my phone is superfluous.

In this case you'd benefit even further from a smartphone without a data plan. Easier texting, ability to use wifi, sync/backup your texts to gmail or whatever, all for $0 increase.

All you'd have to do is get an unlocked phone that the IMEI is not registered with your network to get detected. This is assuming you are not on a CDMA phone.
 
Dec 10, 2005
24,460
7,397
136
In this case you'd benefit even further from a smartphone without a data plan. Easier texting, ability to use wifi, sync/backup your texts to gmail or whatever, all for $0 increase.

All you'd have to do is get an unlocked phone that the IMEI is not registered with your network to get detected. This is assuming you are not on a CDMA phone.

But I don't need any of that, and it would just cost me more up front - smartphones aren't exactly cheap. Easier texting? I'm not writing a novel, most of it is simple stuff and T9word is good enough. WiFi and text message backups - don't need. Nothing I get in text messages is important enough to backup.

I guess I could see how some people want that stuff, I just don't see much of a benefit for myself.
 

BeauJangles

Lifer
Aug 26, 2001
13,941
1
0
But I don't need any of that, and it would just cost me more up front - smartphones aren't exactly cheap. Easier texting? I'm not writing a novel, most of it is simple stuff and T9word is good enough. WiFi and text message backups - don't need. Nothing I get in text messages is important enough to backup.

I guess I could see how some people want that stuff, I just don't see much of a benefit for myself.

I actually agree with you. I'm on Sprint's SERO plan, which means that my smartphone is basically as cheap as a cell phone can get. If I wasn't on SERO, there's no way I'd shell out $70 or $80 / month for features that mostly unnecessary. As it is, I don't receive pushed emails on my phone or any other sort of notifications, besides texts.

I find that constantly being plugged in is a distraction. And annoying.
 

40Hands

Diamond Member
Jun 29, 2004
5,042
0
71
Because they have enough of a market share and influence on our government to allow them the freedom to fuck everyday people over with ridiculous prices for mediocre service.
 

Macamus Prime

Diamond Member
Feb 24, 2011
3,108
0
0
<--- $100 a year on a pay as you go mobile phone.

I don't need/want internet access on a mobile device.
 

spidey07

No Lifer
Aug 4, 2000
65,469
5
76
If anyone can correctly tell me the cost for lease space on a tower, then you'll have your answer. But ultimately it all comes down to the basic fact of "why is it anything expensive?"

Because you'll pay that price.
 

Patranus

Diamond Member
Apr 15, 2007
9,280
0
0
My phone bill is really $90 but I am being charged $100.

Its what happens when you let the government charge things like "Universal Lifeline Charge" or "Federal Universal Service Charge".

Its really sad that your bill gets jacked up more than 10&#37; for a service the government have no involvement in.
 

ChAoTiCpInOy

Diamond Member
Jun 24, 2006
6,446
1
81
Is there anything keeping you with AT&T? You could always switch to another carrier with cheaper rates.
 

airdata

Diamond Member
Jul 11, 2010
4,987
0
0
Can't cut the data plan... iphone

Need the minutes. Usually the plan is 1400 minutes, it's cut back recently from rollover minutes.
After living with the convenience of a smart phone, I can't imagine not having it.



  • Phone
  • Alarm Clock
  • Portable computer
  • Ipod
  • Flashlight
  • Portable Gaming system
  • PDF reader
I'd like the price to be less than $30/month for unlimited data. But that's the best available option without unlocking it to get $15 tmobile
 

frostedflakes

Diamond Member
Mar 1, 2005
7,925
1
81
I do think the phone companies have brainwashed everyone into thinking they need $300 smartphones with $90/month packages. Much in the same way people think they need $30,000 cars.

For the average person, $90/month is a lot of money. Just to talk on your phone? What a waste.
Basically this. You can get a relatively cheap monthly or prepaid plan from one of numerous smaller providers, but a lot of people have it in their head that they need the latest/greatest phones (often beginning with a lowercase "i"), which are usually only available on the bigger/more expensive networks and require expensive data plans. Cell phone companies like AT&T and Verizon charge what they do because people seem to be more than willing to pay for it. I don't think a person can complain too much when they are paying AT&T and Verizon's rates instead of taking advantage of the cheaper options out there. For example, I hadn't even heard of Page Plus until someone in this thread mentioned it, but looking over the plans it seems to be a great deal, assuming you can live with the limited phone selection. $30/mo for 1,200 Minutes / 2,000 SMS/MMS / 100 MB Data on Verizon's network is a steal.
 

gaidensensei

Banned
May 31, 2003
2,851
2
81
But I don't need any of that, and it would just cost me more up front - smartphones aren't exactly cheap. Easier texting? I'm not writing a novel, most of it is simple stuff and T9word is good enough. WiFi and text message backups - don't need. Nothing I get in text messages is important enough to backup.

I guess I could see how some people want that stuff, I just don't see much of a benefit for myself.
I suppose to each their own, the smartphone world is changing lately in that the predecessor G1 runs $50 or something these days on ebay, just over 2 years ago it fetched $400's easily.
It seems these days smartphones are more about processing power and data speeds, app development and porting like running dos or win95, gvoice etc other randomness that gives some initiative.
Everyone is accustomed to the emailing, GPS, camera, social networking apps and such by now that it's a became a standard for every released phone. The whole thing just puts less dependency for a laptop or computer.

They are not used by everyone, I can see that. Many if not most of us started on flip phones in the past.
 

Lean L

Diamond Member
Apr 30, 2009
3,685
0
0
Basically this. You can get a relatively cheap monthly or prepaid plan from one of numerous smaller providers, but a lot of people have it in their head that they need the latest/greatest phones (often beginning with a lowercase "i"), which are usually only available on the bigger/more expensive networks and require expensive data plans. Cell phone companies like AT&T and Verizon charge what they do because people seem to be more than willing to pay for it. I don't think a person can complain too much when they are paying AT&T and Verizon's rates instead of taking advantage of the cheaper options out there. For example, I hadn't even heard of Page Plus until someone in this thread mentioned it, but looking over the plans it seems to be a great deal, assuming you can live with the limited phone selection. $30/mo for 1,200 Minutes / 2,000 SMS/MMS / 100 MB Data on Verizon's network is a steal.

MNVO vs real carrier. I'm looking at straight talk right now. For a year the plan comes out to a little more than $1000/yr for unlimited everything and 2 lines. Vs what I have right now that comes out to $1400/yr. Difference is the SLA. I can usually get on 611 and get someone in a few minutes. MNVOs usually have crappier network service since the main carrier bumps these subscribers when the network gets busy. Add that to the crap customer service and the premium is at least explainable.

For me, it would not make a difference either way but the primary line on this plan is used heavily for business and reliability and service is necessary.
 

ponyo

Lifer
Feb 14, 2002
19,689
2,811
126
Basically this. You can get a relatively cheap monthly or prepaid plan from one of numerous smaller providers, but a lot of people have it in their head that they need the latest/greatest phones (often beginning with a lowercase "i"), which are usually only available on the bigger/more expensive networks and require expensive data plans. Cell phone companies like AT&T and Verizon charge what they do because people seem to be more than willing to pay for it. I don't think a person can complain too much when they are paying AT&T and Verizon's rates instead of taking advantage of the cheaper options out there. For example, I hadn't even heard of Page Plus until someone in this thread mentioned it, but looking over the plans it seems to be a great deal, assuming you can live with the limited phone selection. $30/mo for 1,200 Minutes / 2,000 SMS/MMS / 100 MB Data on Verizon's network is a steal.


You can bring your own phone to PagePlus. Pretty much all Verizon phones will work except the iPhone. Just buy a cheap Droid on Craigslist or Ebay and use it on PagePlus.
 

mmntech

Lifer
Sep 20, 2007
17,504
12
0
It's more expensive in Canada, and we're locked into three year contracts instead of the standard two. Landlines are still considerably cheaper.
 

BoomerD

No Lifer
Feb 26, 2006
63,440
11,766
136
Why are phone plans so expensive?

Because they can be...people will pay the price.
 
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