eli5 – Why does mobile data cost consumers?

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Specifically where does the mobile data originate from? Is it created, does it cost suppliers to “make” it, and do cell/mobile phone networks purchase it from elsewhere

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Anonymous 0 Comments

The difference in operating cost between a connection that’s idle and one that’s saturated is negligible compared to what consumers get charged for data. The only real justification is to reduce peak demand, because that will let you serve more customers with less spectrum and infrastructure.

In some cases you might get different pricing depending on on-peak vs off-peak hours, but more often pricing is based on what the company thinks you’re willing to pay than on any underlying scarcity.

tl;dr: It’s a cash grab.

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