The biggest market doesn’t equate to the lowest prices for 4G LTE customers in the U.S.
Despite this large market, Americans pay anywhere from two to 10 times more for LTE services compared to European countries, The New York Times revealed in an article.
Verizon Wireless charges $7.50 per gigabyte of data downloaded in the U.S., according to the research firm TeleGeography, while Europeans pay an average of $2.50. Meanwhile, in Sweden, consumers pay just 63 cents for a gigabyte.
Data plans in the U.S. often include unlimited talk, text, picture and video messages, which does cause prices to increase per gigabyte, according to Verizon Wireless spokeswoman Brenda Raney. She told The Times that having a data-only plan would allow the price to drop to $5.50, which is still over two times the European average.
Another reason for the higher prices within the states is the level of competition.
Wire Intelligence analyst Calum Dewar said in the article that Europe has the most operators selling LTE in the world. On the other hand, Verizon and AT&T were the only operators within the U.S. selling the service up until July.
3G services follow the same trend they cost much more in the U.S.
Consumers within in the United States spent $115 per month when they bought contracts for 3G services, according to a survey by Ernst & Young. In Britain, the average cost was only $59.
People in the U.S. developed their telephone behaviors back when prices were low, while habits in Europe were developed in a high-cost environment, The New York Times said. This causes Europeans to restrict mobile phone use to reduce spending.
Americans, on the other hand, continue to take full advantage of their costly talk, text and data plans.