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Why does data cost less/MB as you get more and more on a phone than on a tablet or internet device?

jldefoa
Just Moved In

Look at the Flex plans for hubs & tablets (& iPads, in a separate category for those who don't realize iPads are tablets).  100 MB are $10, or $0.10/MB, except that $5 is a "flex" fee, so then the data is $5 or $0.05/MB.  At the top end, 10 GB, which is 10240 MB, is $85 (or $5+$80) for $0.0083, or $0.0078 for the data alone.  So the last MB cost only 15.6% as much as the first MB.  Go over that 10 GB and the price is back to $0.05/MB.  If every MB cost $0.05 then 10 GB would set you back $517.00!  Who would buy that?

 

Now I think it is a good thing to get more bang for one's buck, but the low end of the curve is pretty steep!  For 6 GB, or 40% less data, one pays $70, which is 82% of $85 for 10 GB.  A proportional price would be $53 ($80 x 0.6 + $5), which is $17 less.

 

Elsewhere Telus explains they can't offer unlimited data due to capacity limits.  However, they are willing to reward those who will throw them $80/month with oodles of their precious bandwidth. (Bell Fibe gives 20 GB for $43, or twice as much for half the cost, but its NOT mobile.) Telus is downright stingy to folks on a budget, who can only afford $10/month, who get a measly 100 MB.  The poorer customer subsidizes the data hungry customer.  That is not just!

 

At the budget end things are worse for data for phones.  While 10 GB on a share plan is the same $85 (but without the flex option), a Lite 55 customer will have to fork over $80 if (s)he should use 4 only GB!

 

It seems that Telus execs don't ask "what is a fair price for our products and services?" but instead ask "how can we fleece the sheep for $80/month, regardless of the services provided?  The data pricing on the Lite 45 is designed to get everyone to chose the Lite 55; why pay an extra $45 for 1 GB (total fee $90) when for only $10 more per month the extra cost will only be an additional $25 (total  $80)?  Has a Telus rep ever called a customer to say "If we change your plan you can save money?". Probably never!

 

When one looks at all the data plan options, there are prices for 10, 100, 250, 400, & 500 MB, & 1, 2, 3, 5, 6, & 10 GB, but not for all plans.  Tablets & hubs get 10 MB (for folks who paid twice as much for an iPod than whatban Android tablet costs), 100 & 500 MB, then 1 or 2, & 3 or 5 or 6, & maybe 10 GB options, depending on the device.  Data costs per MB drop by 1/2 over 2 GB.  For phone share plans its 250 or 500 MB, then 1, 2, 3, 6 & 10 GB.  It makes it hard to compare.

 

Since the iPad Flex plan starts at $5 for 10 MB (who uses that little in a month?) it seems that the cost to have data service is $5/month.  So why not just say having data cost $5.  Then figure out how much 10 GB costs and divide it by MB.  Surely it doesn't cost more to give 1 GB to 10 customers, or 100 MB to 100 customers, or 10 MB to 1000 customers, than it does to give it all to one customer?  Do the right thing.  Charge equitably for data.

 

While you are at it, why not make all voice plans flexible too?  A customer is over the 150 minutes or 200 MB of Lite 45?  Charge for Lite 55 that month!  Same for Voice 35, Voice 45 & Voice 60.  Of course it would be just to carry forward unused minutes, but I don't think Telus execs would consider that, though they are quick to abuse their position to charge a minute once one goes a second over.  Your contracts aren't negotiated equitably, they are dictated as take it or go to another oligarch.

 

I challenge Telus to take the lead in doing the right thing.  Just as a coffe cost the same at Tim's whether your name's Bronfman or Jones, so a MB should cost the same whether you buy 10 a month or 10000.

 

Regards,

 

J L De Foa

 

1 ACCEPTED SOLUTION

xl
CPU Alum
CPU Alum
Not to be confused with speeding where the fines and penalties increase as you go faster.

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3 REPLIES 3

NFtoBC
Community Power User
Community Power User
Please let us hear your comparison of S/M/L/XL and XXXXL coffee at Tim's.
NFtoBC
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tsizzle
Leader

Most people appreciate data getting cheaper the more you take, gives them a reason to buy more... If it got more expensive as you needed more, that would be a legitimate reason to complain. 

 

What is the cost per ML ($/ml) on a Tim's Medium small coffee vs. XL?

xl
CPU Alum
CPU Alum
Not to be confused with speeding where the fines and penalties increase as you go faster.

View solution in original post