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Tuesday, January 11, 2011

cell phones and internet charges - what a mystery?!

For years I have been fascinated by the differences in cell phone and internet charges around the globe.

In America we pay a flat rate for internet service and can use it as many hours as we want and generally download as much data as our heart desires - movies, news, video clips, photos of all sizes are at our finger tips and we rarely think about the file size as the price isn't measured that way.

Overseas, when internet service is available it often comes with higher charges during premium hours, a limitation on data usage per month and a serious up-charge for anything over that amount.

This seemed easily explainable by capacity issues.

Cell phones were a different story. If we are operating under the assumption that the developed world (America) has more capacity - wouldn't it logically lead one to assume that we would get the flat rate, abundant usage on cell phones that we get with internet? Oh no, that is not the reality! Most cell phone plans have higher charges during premium hours, a limitation on data usage per month and a serious up-charge for anything over that amount. Data is an add-on to a phone plan. As well as texting. In America, we are charged a large number of fees beyond basic service.

Overseas, you often pay a flat rate for cell phone service and texting is part of the package.

From experience I know it is not because the technology is more advanced. I have been convinced for years this was simply a result of the marketplace. Cell phone companies in the US charged additional fees simply because they can, because we would pay it.

Sprint's recent decision to charge a flat rate of $69 per month for unlimited calling, texting and other bells and whistles has succeeded to further convince me of this opinion.

When Kenyon and I returned to the US we had a decision to make about cell phone providers. We are living in the basement of someones home and weren't likely to get a home phone. So, what cell phone company were we going to use?

We didn't go with any of the major providers. We didn't want to sign a contract. We didn't want to pay a bunch of money to purchase a cell phone. We didn't want to pay extra for bells and whistles that we weren't going to use - we only wanted to pay for the service we used.

We became consumers of the pay as you go cell phone variety. Our phone was under $30USD and we bought a phone card for an additional $30USD, that is good for 60-days. If we use the minutes before that time we simply buy more airtime, the airtime can roll over we just have to keep the phone active. Easy-peezy...and by my estimates it is saving us hundreds a year.

I am sure that the popularity of the Sprint plan will encourage more cell phone providers to change how they charge their customers. As flat rate plans become more popular, and our circumstances change, then we may once again join the big boys. Who knows? But, what I really like is that we have the freedom to make that choice as we aren't locked in to any contract and won't be charged any additional (unnecessary) fees.

Have you ever wondered why cell companies in the US charge extra for services like text and data? Are you satisfied with your phone service?

Just Sheri, liking the move to flat rate cell service in my homeland

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