Eli5 – How does data work and how do mobile and internet companies create it ? Can they create as much as they want ? Do they control the quota to control prices ?

Question

Eli5 – How does data work and how do mobile and internet companies create it ? Can they create as much as they want ? Do they control the quota to control prices ?

In: Technology

Answer 1

Think of “data” on your mobile plan as a fixed number of letters you’re allowed to send or receive.

e.g. you can send or receive 1000 letters. One letter could contain writing, an image or a short bit of a video. So to watch a YouTube video you may need to use up like 20 of your letter allowance.

What you’re paying your mobile provider for in this analogy is the postman to deliver or bring you your letters