Are We Being Shafted by Cell Phone Providers?

Why exactly is data transfer over cellular networks so damned expensive? I mean, it’s REALLY fucking expensive. In fact, it might just be the most expensive commodity on the planet. Do I detect some sort of scam here? Should I suspect that cellular providers might be exploiting the average person’s inability to comprehend fractional numbers in order to rake in an unbelievable amount of profit? Rogers’ is currently charging me $0.05 cents per kilobyte of data transfer over my cellphone!

Wait a minute… that doesn’t sound like very much. Right? What’s five cents here and there?

Well, think about this: One of the Internet hosting companies that I deal with sells me bandwidth for around $20.00 per month. For this $20.00 I get 180 GIGABYTES worth of throughput every 30 days. Now, lets say that I actually transfer the entire 180 gigs in a single 30 day period. If I was paying Rogers’ rates on that bandwidth, my monthly bill from my hosting provider would be $9,000,000.00! That’s eight million, nine-hundred and eighty thousand dollars MORE than what my current hosting provider charges me. Rogers charges OVER FOUR AND A HALF BILLION PERCENT more than my hosting provider for their bandwidth!!! How in the hell is my hosting provider making any money at all?

Ok, ok. I realize that the available bandwidth over cellular networks is much more limited than over Internet OC-3 data connections etc. But, I mean, come on!!! What the fuck? A four and a half BILLION percent markup??? I must admit that I’m largely ignorant regarding these matters, (re: the specifics of various types of network infrastructures and their abilities, limits and differences) but is bandwidth over a cellular network really THAT much more precious than it is over standard Internet data connections? I mean, there is a truly astronomical difference in the two rates here. Is there something that I’m missing? All I know is: One company is selling me a gigabyte of bandwidth for eleven cents, and another is selling it to me for FIFTY THOUSAND DOLLARS! Call me crazy, but something seems off.

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