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

‘Data’ is not something that’s created by a phone company. Telus is not creating the Netflix movie you’re streaming to your phone.

It costs money to ‘transport’ a file from one part of the internet to your cell phone. This is the service your phone company is charging you for. This is what ‘data’ is.

If you stream a movie from Netflix that requires a 1GB file transfer to watch fully, then that’s the ‘data’ your phone company is charging you for. Telus took 1GB from Netflix’s server and sent that 1GB to your cell phone, and they just subtracted 1GB off of your ‘data’ package for the month.