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Why are cell phone data plans so expensive in the US?

Posted on 6/7/14 at 10:09 am
Posted by stendulkar
Member since Aug 2012
767 posts
Posted on 6/7/14 at 10:09 am
I travel to Europe occasionally for work and when I go I usually get the same brand of prepaid SIM card with 2GB data for 9 Euros that is valid for 30 days.

I was talking to a friend in India and asked him how much he pays for his cell phone data. He said he has a prepaid plan for 4GB per month which is valid for 30 days as well and it costs him............wait for it Rs.155 ($2.5 per month)! He says he gets 4G speeds in big cities and 3G elsewhere. There is no LTE in India yet apparently.

How in the world are telecom companies able to provide such cheap plans in other countries? I guess those people are wondering how gas is so cheap in the US.
This post was edited on 6/7/14 at 10:11 am
Posted by Pat Sajak
New Orleans
Member since May 2009
754 posts
Posted on 6/7/14 at 10:26 am to
Could you elaborate on using a cellphone in Europe? I'm going next week for two months and I would like to pick up a burner. Any models of phone or service provider?

Sorry to shite on your thread, but you sound like you may know what's up with European mobiles
Posted by stendulkar
Member since Aug 2012
767 posts
Posted on 6/7/14 at 10:42 am to
When I go to Europe, I just get a local SIM card (not a phone) with data plan at the airport. I pop out my AT&T SIM card from my regular phone and just use the other SIM for the duration of my stay there which is usually between 1-2 weeks. Some airports (big ones) have vending machines from where you can get the SIM card, but sometimes there are also little shops inside the airport that sell both the SIM card and a prepaid phone if you wanted that. I have also seen SIM cards (not phones) sold at gas stations, so even if you don't get one at the airport, you have other options. Just ask somebody when you land there. If there is a local person picking you up, they should be able to help you. I think T-Mobile is the biggest provider in Germany and Vodafone elsewhere in Europe.
Posted by Pat Sajak
New Orleans
Member since May 2009
754 posts
Posted on 6/7/14 at 10:56 am to
So I would have to unlock my att phone to use an euro sim without buying a new phone?
Posted by Jim Rockford
Member since May 2011
98188 posts
Posted on 6/7/14 at 3:28 pm to
Because the telecoms don't lobby their governments as efficiently as the ones in this country do, thus they actually have to compete.
Posted by stendulkar
Member since Aug 2012
767 posts
Posted on 6/7/14 at 9:52 pm to
quote:

So I would have to unlock my att phone to use an euro sim without buying a new phone?

Yeah I was lucky to have unlocked AT&T phones every time when I went over there. If you don't want to go through the pain of unlocking the phone, I'd suggest buying an unlocked phone like the Moto G from the Google Play store for use during your trip. It is a great phone for only $179(8GB)/199(16GB). It could also totally be a backup phone when you come back home.
Posted by OceanMan
Member since Mar 2010
20020 posts
Posted on 6/8/14 at 11:52 am to
quote:

Could you elaborate on using a cellphone in Europe? I'm going next week for two months and I would like to pick up a burner. Any models of phone or service provider?


It really depends on your plan while over there; will you be moving around from country to country? Will you get it primarily to call home? For data?

And yes you will absolutely need an unlocked quad-band GSM (ATT or T-Mobile) phone, but also note that some of the lower end quad band phones operate on different 3g frequencies in the US and in Europe, so will not be able to pick up 3G while roaming internationally. Higher end phones like galaxy and iphone should not have this problem. GSM phones are the only phones that will def work (although certain phones like iPhone are universal "world phones" that will work with any carrier once unlocked).

I do agree with stendulkar that the Moto G is an awesome phone, Im getting one on Tuesday to replace my gs4. However, I dont believe the cheapest model has universal 3g; you would have to choose an international or US model. The same can be said to its less expensive counterpart, the Moto E, which costs $129, which is a good bargain.

An option I may suggest is a dual-Sim phone. These are designed for people that travel, and can operate both a home sim and a local sim simultaneously. In other words, you could drop in your ATT Sim, receive a free incoming text from home to call someone back, and call them back with a local sim at a reduced rate. I just purchased one of these for an upcoming trip that will serve this purpose. IT is not very fancy, and not as high in quality as moto, but I personally like the dual-sim aspect.

If you plan to move around a good bit, like if you are backpacking, stopping in every country to get a SIM can become a pain in the arse, especially if you go with a big group and would be holding them up. The reason being is getting a new SIM from country to country can vary a good deal. In England for instance, you can grab one out of a vending machine in baggage claim, and it will have english instructions on an "add-on" that best suits your needs (usually choose one of, data, better calling/texting locally, or international).

In Italy, you will need to show a passport to register, and I believe Germany is the same way. Its not that it is particularly hard, but may make it more trouble than it is worth considering language barriers, and not getting the exact product you need. On the other hand, if you wil be staying put for extended periods, a local sim is def the way to go.

If you will be bouncing around from day to day, I would suggest a roaming SIM card, which will give you better rates overall than ATT, but will not be quite as good as individual local sims, but will save you the hassle of having to pick them up over there, and constantly be switching them out.

For talk, I recommend onesimcard. Or possibly toggle, although it depends on the countries you visit. If the toggle countries are all the places you will go, I say it is tops.

For data I recommend keepgo.

Once more, you can get some really good deals for international calling and local data with local sims, but it can be tough to decipher the best deal once there, when the information on tariffs is all in a foreign language. These options above may be a bit more expensive, but will save some hassle.

And finally to the OP, I'm a bit out of gas, but in my experience, the US has far and away the best data quality I have encountered, and might factor into the higher bills, although that is clearly not the only factor at play. There is also less competition locally, as even smaller countries like Italy have 4-5 carriers.
Posted by TigerDeBaiter
Member since Dec 2010
10266 posts
Posted on 6/8/14 at 1:53 pm to
I always thought part of it is because of the phone subsidies.
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