US Users of 4G LTE Network Paying More, Report
A recent study by GSM Association’s Intelligence Group has found that 4G LTE network users in the United States could be paying more than their counterparts in Europe. According to this report, Verizon Wireless of the US charges $7.50 Per GB while in Europe consumers pay about $2.50 for an equal amount of data. This means if you are in US and you own a Smartphone you could be paying three times more than a person in Europe for the same size of data. The question many are asking now is why this should be the case.
Several explanations have been offered. The figure quoted in the report includes other services like unlimited text messages and unlimited voice minutes. This was according to Brenda Raney, a spokesperson of Verizon Wireless, speaking to The New York Times. She estimates the real figure to be 5.50 per GB which is still two times higher than the Europeans. According to another analyst this could be the case because packaged voice and data deals. Also competition in Europe is much greater than in US. In the US there are three 3 major service providers with Verizon and AT&T having the largest share. This puts them in a good position to control the prices.
T-Mobile is planning to introduce its 4G LTE network. Softbank is in the process of acquiring 70% share in Sprint. Sprint could then invest more in its 4G network to compete effectively with other giants like AT&T. This will increase competition and probably bring the prices down. With 38 4G LTE service providers, prices might still remain lower in Europe due to the stiff competition.
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