Sunday, October 07, 2007

Paying out the nose...

If you're ever seen a cellular commercial - you always see people talking, accessing the internet, sending text messages... and so I thought it would be fun to take apart the costs they charge you.

First, lets talk voice. You're paying a few cents per minute... roughly 2-12¢. A minute of voice calculates out like so: 64 KBits/second * 60 seconds / 8 bits per byte = 480 KBytes. Lets say the average is 6 cents per minute.

Now, lets talk SMS/Text messaging. An average text message is 160 Bytes. For this, you're typically paying a flat rate of 25¢. Wow... pretty expensive?

Now lets talk about Data... IP packets routed over the internet. They charge 10 bucks for 4 MBytes (if you prepay) or 1¢ per KByte (always rounded up).

So, to leverage this all out:
Voice = 81920 bits per cent
SMS = 51 bits per cent
Data = 1024 bits per cent (by the kilobyte)
Data = 419430 bit per cent (prepaid... use it or loose it)

It's all the same to the network. It's simply "multiplexed data" from the phone to the central office. Only there is it separated to the switching network (phone) or internet (sms & data).

I wish I could just buy bits instead of minutes, special packages, add-on offers, et cetera. It would be a lot less smoke and mirrors.

3 comments:

celogomama said...

For the longest time, I have thought: They are beginning to use the European charging system phone, data, mail.

The latter was confirmed last time I went to the post office.

The manager measured width/height/depth/weight on an oversized card.

That hasn't happened to me since 1991, the last time I was in Germany.

At the very least, things that make me go, "Hmmm"

Mark Zuniga said...

Another example of smoke and mirrors with the mobile phone industry is that they don't charge a flat fee, which would make it easy for a price comparison. Instead, you get free evenings or some other gimmick that is meant to imply cheap service without its being directly comparable to a competitor.

Zathras said...

"It would be a lot less smoke and mirrors."

Isn't that the point? They have absolutely nothing else to compete on. They have to appear to give the best deals.