American’s Pay More Than Three Times What Europeans Pay For Smartphone Service

America, the land of cheap food, crappy public transit and compared to the rest of the world, lagging consumer technology. In yet another example of how we need to ditch the current two-year contract model, we now have hard numbers on how much we overpay for smartphone service

Reporting on a study by the GSM association, the New York Times writes that Americans pay an average of $7.50 per GB verses an average of $2.50 per GB in Europe. When asked about it, a Verizon spokesman said the numbers were misleading and that when other factors had been counted US customers only pay $5.50 per GB. That’s still double when Europeans are paying.

This is a prime example of what happens when duopolies are allowed to exist. Like the car industry, neither Verizon, nor AT&T want to lower prices on their services out of fear of sparking a price war. The last thing that the telecommunications giants want is anything that would hurt their bottom line.

Part of the blame also lands squarely on the shoulders of consumers as well. If we were unwilling to pay the prices we are paying for smartphone service, the companies wouldn’t charge as much as they are.  Capitalism has up and down sides folks.

I sincerely hope that the Softbank acquisition of Sprint will shake up the mobile services industry in the United States. Disruption in this sector is long overdue.

What say you about this? How much longer are you willing to pay the current rates for your smartphone service?

Kenny Larson
Onetime Apple/Android/Windows fanboy. Now a firm agnostic when it comes to OS. They all suck in their own special way.

"Be excellent to each other."
--Bill & Ted

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