It must have occurred to you that whether you are a 2G or 3G or 4G service why it is so costly than any Broadband service??? You must have thought that either mobile company’s are stealing from us or broadband service provider are giving us a special discount. Let’s find what’s the real reason behind this difference in pricing.
The main reason behind this price difference is the Infrastructure and the Technology used.
The mobile phone company’s spend very much on the auction of spectrum to operate in a specific region. Think of it yourself how much does a mobile tower costs and they have to upgrade their towers with the increasing user base. Even after that when the technology changes they have to upgrade or sometime even change their towers. Since, it is a wireless network the losses are very high due to interference and it cost company very much minimize these losses.
But if you are talking about wired connection. Those phone lines cost a lot to lay, but low almost no maintenance cost, spread over a long time & fully depreciate them they are litteraly “free” and there are almost no technological upgrade for a long time as if you have laid fibre optics cable then you can literally forget about it. There are no looses as their is no interference in underground wire.
So the main point of difference is the Cost of Operation. It must also be noted that profit margins are high in these mobile phone companies but it can be understood as they are investing so much and furthermore they have to renew their spectrum license also.It is not a one time cost.
But the basic difference is the technology used. In fixed line once you have laid it in a locality and you just have to do local wiring, it is just like one time cost. But in case of mobile connection you have to pay the rent of all the towers and cost of equipment and spectrum cost which is itself is very costly, which costs in millions, moreover they have to renew their spectrum license which makes Mobile Data is Expensive than Broadband.
Nowadays, it has become our necessity for us to use mobile internet, you can opt out of wi-fi connection but almost every smartphone user has internet on his phone. So because of its high demand we get expensive mobile internet. This means there is room for prices to go down even though they are unlikely to be as low as fixed-line plans. and the competition in case of mobile operator is not as high as in the case of broadband providers. As mobile operators provide many other services than just internet but broadband operators just provide internet so they have to keep their prices competitive.
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TecnoCoder 