Congratulations Americans, We Pay The Most For Cellphone Service

[grondramb]

http://consumerist.com/5335809/congr...lphone-service

A new survey from the Organization for Economic Cooperation and Development (OECD) compared annual costs around the world for consumers who have cellphones, and the U.S. is in the top three for most expensive. How expensive? DSLReports notes that "on average, the OECD found that Americans pay $635.85 on cell phone service, compared to $131.44 per year in the Netherlands or $137.94 per year in Sweden."

As you might expect, the wireless industry issued a press release proclaiming the study was based on "flawed assumptions" that "just don't make sense." If you look at the data the way carriers would like, you're getting quite the bargain. The CTIA does have a point that the OECD's usage categories seem low — particularly when it comes to MMS use. Another reason U.S. prices seem high? Carriers charge a hell of a lot of money for service. They also spend millions on lobbyists who tirelessly work to eliminate consumer protections and price controls.

A counterpoint would be that one reason cell phone service is expensive is that in comparison to land lines, cell phones are reasonable.

But with VoIP there should be cost pressure downward.

[d-dub]

I pay more than $137/month for a frikking landline, and I don't even use it

[grondramb]

Originally Posted by d-dub

I pay more than $137/month for a frikking landline, and I don't even use it

Wow - that really, really high.

[Philosofy]

Do European governments subsidize cell service?

[Marc]

Originally Posted by grondramb

Wow - that really, really high.

Yeah, what's up with that?

Our landline is somewhere in the neighborhood of $40/month. (It's in a bundle package with our FiOS TV, so it's a bit tricky to separate out given combined discounts.)

[doom1701]

I'm not going to dig through the study, and the article was extremely light on facts. I have to wonder, though, if this takes into account:

1. Data Service--everybody these days has some sort of data service (and don't even get me started on what iPhone users are paying). There's no way that the European countries listed are doing unlimited 3g data with unlimited talk and texting at essentially $12 a month (at least not without government subsidies).

2. Coverage--we Americans (for the most part) like our space. But we like 3+ bars in that space. What kind of coverage does Sweden really have in those big empty areas full of yodelers?

3. Coverage, Part 2: the US is considerably larger in land mass than Europe (not counting the Russian territories--we're about even if you throw those in). Does a cell phone user in Sweden get coverage at no extra charge in England? Can a cell phone user from Italy roam freely in Finland? I can hop a plane to California and I know that, when I land, I'll have full cell phone service.

[Faerie]

We also sometimes (usually?) pay less for the hardware. Most cell phones abroad are not subsidized, are they? Those Nokia and Sony Eriksson phones that are so popular in Europe are very pricey.

[grondramb]

Those are all good questions/possible factors, Doom.

[heySkippy]

Woo Hoo, we're number one!

[busyba]

So much for "free" speech.

[pgogborn]

Speaking from the U.K there are so many carriers and tariffs it is very hard to do comparisons but a couple areas where I think U.S. customers have been or are at a disadvantage.
In the U.K. no carrier/plan charges or has ever charged for incoming text messages
In the U.K no carriers pre-pay / pay-as-you-go credits are time limited (useful if you have a phone as a back-up; 'reserved' for incoming calls etc)


There is no government subsidy - last time radio spectrum was auctioned by the government the treasury received £22 billion.

[betamax]

Originally Posted by d-dub

I pay more than $137/month for a frikking landline, and I don't even use it

That's nuts! Do you have lots of extra bells and whistles on it that you can turn off?

I pay less than that for cable, internet and phone combined!.

[bryce1012]

Originally Posted by doom1701

I'm not going to dig through the study, and the article was extremely light on facts. I have to wonder, though, if this takes into account:

1. Data Service--everybody these days has some sort of data service (and don't even get me started on what iPhone users are paying). There's no way that the European countries listed are doing unlimited 3g data with unlimited talk and texting at essentially $12 a month (at least not without government subsidies).

These are averages. Sure, the Europeans aren't getting unlimited data/text/etc for $12/month -- but then, we're not getting unlimited data/text/etc for our $50/month, either.

You may well have a point regarding coverage, though.

[d-dub]

Originally Posted by betamax

That's nuts! Do you have lots of extra bells and whistles on it that you can turn off?

I pay less than that for cable, internet and phone combined!.

It's a "standard" package that includes voicemail, caller id, etc. It's crazy, and we're trying to decide what to do with it. We've kept it in case the kids need to call 911 when we're not home... but they're not with us much anymore, and they all have cell phones now. We may just drop it, or replace it with google voice, or something like that.

[doom1701]

Originally Posted by bryce1012

These are averages. Sure, the Europeans aren't getting unlimited data/text/etc for $12/month -- but then, we're not getting unlimited data/text/etc for our $50/month, either.

You may well have a point regarding coverage, though.

I think I still have a point about service level, too. You're correct--these are averages. But do people in other countries choose to have advanced services to the extent that Americans do? For example, if 50% of Americans have some high end data/texting plan, do the same percentage of Europeans have a similar plan?

[pdhenry]

Dunno about Sweden, but the coverage in (South)Western Europe blows US coverage away. Full bars in the middle of nowhere in Italy and Switzerland IME.

BTW, Vonage still costs me under $20/month. Of course you need to factor in the cost of broadband somehow, but since we'd have cable internet anyway the incremental cost for vonage is just what it is.

[TheIndependent]

my cell phone bill last month was $277, land line was like $80. stupid phones!!

[IndyJones1023]

Originally Posted by d-dub

It's a "standard" package that includes voicemail, caller id, etc.

Sounds like a call to your congressman is required. My land line is in the $30 range per month. To be charged 4x that sounds like price gouging.

[d-dub]

Originally Posted by IndyJones1023

Sounds like a call to your congressman is required. My land line is in the $30 range per month. To be charged 4x that sounds like price gouging.

Man, I don't know what I was smoking... that's nowhere near what we pay for the landline... it's more like $60/month for the landline. Now that I've had a martini, I'm thinking clearer

[DougF]

I will only spend between $60 and $80 this year on cell phone service. All we have is a pre-paid that my wife usually carries and it only requires $10 every other month. We're not cell phone people

[InigoMontoya]

Originally Posted by doom1701

2. Coverage--we Americans (for the most part) like our space. But we like 3+ bars in that space. What kind of coverage does Sweden really have in those big empty areas full of yodelers?

It can't be any worse than the Western US. In this neck of the woods, two weeks ago we had a fatality because a woman who was traveling considered having a cell phone as a viable emergency plan. She got stuck. Ooops, no coverage. Her 11 year old son died of dehydration before they were found a few days later by a park ranger.

[pgogborn]

Originally Posted by doom1701

What kind of coverage does Sweden really have in those big empty areas full of yodelers?

I have asked around and I can not find any yodelers in Sweden complaining about coverage

[gregor]

Doom has some great points. Considering the size of the US, building out cell networks is dramatically more expensive than building one in Sweden or some part of Europe.

Would you pay dramatically less for a phone that just worked in PA and the surrounding states? I would, and I'd be happy with paying roaming charges otherwise, but that's not gonna happen. My iPhone costs $75 a month or so, and in a normal month I might make 20-30 minutes worth of calls. It's mostly a data device for me.

[JETarpon]

Originally Posted by doom1701

2. Coverage--we Americans (for the most part) like our space. But we like 3+ bars in that space. What kind of coverage does Sweden really have in those big empty areas full of yodelers?

Aren't the yodelers in Switzerland?

[JETarpon]

Originally Posted by InigoMontoya

It can't be any worse than the Western US. In this neck of the woods, two weeks ago we had a fatality because a woman who was traveling considered having a cell phone as a viable emergency plan. She got stuck. Ooops, no coverage. Her 11 year old son died of dehydration before they were found a few days later by a park ranger.

I'm considering getting one of these, since I routinely fish in areas where there are bears, rushing 40 degree water, and no cell phone coverage. I'd think it might be a good idea in your neck of the woods, too.

http://www.findmespot.com/en/