[HN Gopher] The cost of 1GB of mobile data in 228 countries (Feb...
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       The cost of 1GB of mobile data in 228 countries (Feb 2020)
        
       Author : vanilla-almond
       Score  : 61 points
       Date   : 2020-08-22 21:52 UTC (1 hours ago)
        
 (HTM) web link (www.cable.co.uk)
 (TXT) w3m dump (www.cable.co.uk)
        
       | notRobot wrote:
       | I don't understand, why is it that it costs less than $1 in
       | countries in Asia for a GB of mobile data but costs ~$15 for the
       | same in the United States?
       | 
       | Can someone with knowledge of the industry please explain the
       | reasons for this discrepancy to me?
        
         | otoburb wrote:
         | Demand and supply. Clearing prices are higher in the US for a
         | variety of reasons.
        
         | Yetanfou wrote:
         | Maybe the word 'cost' is not the right term, better would be to
         | talk about 'price'. The price is as high as the market will
         | bear, clearly people are used to paying more for data in the
         | USA and as such there is less incentive to bring down prices.
         | The actual cost - as in what it costs to send data from A to B
         | inside a carrier network - does not vary much between countries
         | and can even be higher in some of those countries where retail
         | prices are lower than in the USA.
        
         | inetknght wrote:
         | Rent. American businesses love extracting rent.
        
           | jeppesen-io wrote:
           | ALL businesses do
        
         | jzwinck wrote:
         | Cellular service clearly can be delivered more cheaply in poor
         | countries. Telenor for example is Noweigian (very wealthy
         | country) but offers service at lower prices in Myanmar.
         | 
         | One reason is labor costs. Imagine how much it costs to build
         | and maintain one tower in Norway with its high standard of
         | living for everyone vs in Myanmar where people will work for
         | much less, and with lower safety standards.
         | 
         | And obviously providers will charge more if they can, less if
         | they have to.
        
           | MAGZine wrote:
           | Can you point to a source that says labour costs are the
           | reason for high Telco prices? The ongoing maintainence of a
           | tower seems like it would be fractional to operational cost.
        
             | jzwinck wrote:
             | Of course towers are a fraction of operating expenses. It
             | was just an example of one piece of the puzzle. All labor
             | costs in Myanmar are far lower, from marketing to lawyers
             | to retail store staff.
             | 
             | And as I said, there are other reasons such as consumer
             | surplus (rich people can pay more, so they do).
        
           | jeppesen-io wrote:
           | And cost of land and permitting
        
             | [deleted]
        
           | skylanh wrote:
           | As an extension to this comment, other costs that could
           | impact the delivery price of 1GB of total usage:
           | 
           | - speed
           | 
           | - overall saturation of tower (# users per tower)
           | 
           | - population density (full coverage of an area may be
           | difficult)
           | 
           | - technology; https://en.wikipedia.org/wiki/Comparison_of_mob
           | ile_phone_sta... which could affect federal regulatory
           | licensing costs, technology licensing and acquisition costs
           | and competitiveness of market to provide technology, tower
           | density, total user capacity
           | 
           | This is my laymen's interpretation. For instance, to blanket
           | the US (9.834 million km2 and 36 people per Km2) in LTE would
           | be a significantly harder challenge then blanketing Myanmar
           | (676,575 km2 and 83 people per Km2) or even Norway (385,203
           | km2 and 15 people per Km2).
           | 
           | Just look at the stats for Myanmar, 86 people per Km2, and I
           | might be able to get most of them within 300-500k km2. My
           | subscriber base is excellent!
        
         | masklinn wrote:
         | They make you pay what they can.
        
         | rsynnott wrote:
         | Beyond the usual arguments about "the US is big", poor
         | competition is probably a big part of it. US telcos have a lot
         | of lockin, with very long contract lengths, poor acceptance of
         | prepaid plans, and "family plans" being common. All of this
         | makes it less likely that people will move network, so there's
         | less incentive for telcos to actually compete on price.
        
         | polack wrote:
         | You need to build coverage for a huge portion of the population
         | to get a license in many western countries. So all customers in
         | the less densely populated countries have share that cost.
         | 
         | There is also strict requirements on uptime and huge fines for
         | telcos in western countries if the service goes down, even for
         | just a moment. Needless to say that creating a resilient
         | network costs a lot more.
        
       | grecy wrote:
       | I drove around Africa from mid 2016 to mid 2019[1]. I bought a
       | SIM in most of the 35 countries I went to, uploaded YT vids, hi-
       | res photos and just video chatted family. Overall the 3G
       | connectivity was impressively fast, and almost always a fraction
       | of the price of Canada or the US.
       | 
       | Overall, I was extremely impressed.
       | 
       | [1]
       | https://www.youtube.com/watch?v=waQGUz0Z97Y&list=PLNiCe5roBX...
        
         | pier25 wrote:
         | Woah that's quite an adventure!
         | 
         | How come you stopped in Egypt and didn't go back to Morocco?
         | 
         | Tunisia is a great country to visit.
        
           | grecy wrote:
           | It was always my dream to complete the loop, but the
           | situation just didn't allow it.
           | 
           | It is impossible to get a visa for Libya, and with the
           | ongoing civil war the safety situation is B.A.D. Even if I
           | got a visa, the Egyptian military wouldn't let me get
           | anywhere NEAR the border. They're extremely protective of
           | tourists and won't let them go anywhere "dangerous". They
           | also wouldn't let me drive the Sinai over to Isreal.
           | 
           | Also, the border from Algeria into Morocco has been closed
           | for years, and nobody could tell me what would happen if I
           | showed up and tried to cross.
           | 
           | So, unfortunately Egypt was the end of the line on that one!
        
             | sgt wrote:
             | Have you watched Motonomad? I guess Adam Riemann was lucky
             | with the timing being allowed into Sinai.
        
       | quink wrote:
       | Not sure about South Korea, for instance, being at 202nd place
       | for affordability there when unlimited plans for even pre-paid
       | tourist SIMs are a thing.
        
         | kochthesecond wrote:
         | I remember getting this in south korea and in japan,
         | remembering it was moderately priced. Not expensive, not dirt
         | cheap.
        
         | traceroute66 wrote:
         | As I said in my post (which seems to be being downvoted despite
         | telling the truth). The webpage is very naive and is not really
         | telling the truth about mobile contracts.
         | 
         | The wallet cost of mobile data is lower than the inflated
         | prices shown on the website.
        
       | chrismorgan wrote:
       | Related discussion from 43 days ago on an article that used this
       | as its source data: https://news.ycombinator.com/item?id=23795147
        
       | gtirloni wrote:
       | What amazes me the most with my telco is that they charge $60 for
       | a regular plan which includes 4GB of data, SMS and phone calls,
       | but if I want to buy 1GB extra, it's $30-40 bucks. For a single
       | 1GB of download.
        
         | allset_ wrote:
         | What horrible carrier is that? Even in the US which has high
         | cellular data costs it's usually $10/GB
        
         | gruez wrote:
         | Makes sense, because it's modeled on your willingness to pay
         | rather than cost. They probably did the market research and
         | figured that people who use more than 4GB of data per month
         | probably depend on it to earn a living, and therefore can
         | charge more. Yet another reason why everyone should get a dual
         | sim phone, which breaks this sort of market segmentation.
        
       | franciscop wrote:
       | This is an amazing visualization and clearly shows what I found
       | while traveling through Asia. Would love to see this mixed with
       | average salary per country, which I expect will show an inverse
       | correlation.
        
       | izzydata wrote:
       | I'm doing my part in the US by not paying for a single byte of
       | mobile data. They will have to bring the price down for me to
       | consider it.
        
       | chiefalchemist wrote:
       | This is great. But additional and important context is speed.
       | Knowing coverage would be a plus as well.
       | 
       | Slow with mediocre coverage might be inexpensive but that waiting
       | (and swearing?) comes with a cost.
        
       | rsynnott wrote:
       | I'd wonder how they're accounting for 'unlimited' plans. In
       | Ireland, for instance, about a third of people would be using
       | Three, and most of their plans are 'unlimited' (in practice,
       | there are limits after which they'll throttle you, I believe, but
       | they're high).
        
         | traceroute66 wrote:
         | They're not. They're deluded if they think anybody in Western
         | Europe is paying $3.13 per GB in 2020. ;-)
        
       | qalmakka wrote:
       | I'm Italian and I pay ~9 euros per month for 130 GB of uncapped
       | 4G mobile Internet, so I can't really complain about it. Some new
       | offers I've seen are as low as 6.99 for 100 GB + infinite calls.
       | A few days ago I told this to a friend of mine who lives in the
       | UK and he was shocked because he pays a lot more for like 2GB a
       | month.
       | 
       | I guess healthy competition can really good for consumers when it
       | works right.
        
       | RantyDave wrote:
       | Yeah, this isn't right. I pay (New Zealand) a hundred and
       | something a month for 100GB 4G or 5G if you can get it.
        
       | [deleted]
        
       | chatman wrote:
       | I'm in India and I pay $8 for 84 days and get 2.5GB/day for those
       | 84 days.
        
       | bchip wrote:
       | I am in the US. I pay $80 a month for TWO phones. My plan
       | provides unlimited calls, texts, and shared 2GB of 4G data. When
       | my data runs out, my data speeds go to 100kb/s.
        
       | traceroute66 wrote:
       | Trouble is that webpage is largely a meaningless waste of time.
       | Anybody who has done business with the mobile operators can tell
       | you that.
       | 
       | It doesn't take into account the different types of contracts
       | (e.g. are we talking about personal or business contracts, pay as
       | you go or contract etc. etc. etc. etc.).
       | 
       | Nor does it take into account the infinite and ever changing
       | commercial promotions the operators run.
       | 
       | If the chart on that website was to be believed, the data on my
       | mobile contract should be costing me 15x more per GB than it
       | actually does !
       | 
       | Load of codswallop.
        
         | anothermoron wrote:
         | Exactly, just take Canada for example, most expensive 1gb:
         | $99usd, it's clearly not just for a simple "1gb data" plan,
         | it's probably one that allows unlimited call worldwide without
         | any charge...
         | 
         | Some places probably doesn't even have those kind of plan so of
         | course they will rank lower if every plans are under $20
         | because there is nothing worthy in it...
        
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       (page generated 2020-08-22 23:00 UTC)