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Why are out of package data costs so high?

  • 02-03-2010 10:37pm
    #1
    Mad Mike
    Registered Users, Registered Users 2 Posts: 717 ✭✭✭


    I notice that the mobile operators have started to offer more reasonable priced data packages for low level internet usage - for example 99c per day from O2 or €5 per month for 250Mb from Meteor. Yet out of package data costs are still astronomical - as much as 2c per kb. To put that in perspective the 250Mb that you can get for €5 per month would cost you €5000 out of package.

    I understand that the phone companies prefer people to sign up for packages and I realise that most people never use their full allowance but this still seems crazy to me. Surely the current rate is so punitive as to dissuade casual users from even trying out the internet on their phones. Anyone who is foolish enough to try it once will surely never use the internet on their phone again once they realise that is costs several euros to browse a typical internet page.

    Why do phone companies not offer a more attractive out of package rate? I am sure they would still make a healthy profit charging 20c per megabyte for example. This might tempt people to try out the internet on their phone instead of frightening them off. If they got hooked they might even sign up for one of those packages the companies are so keen to sell.

    It can't just be in the hope of fleecing the few unfortunates who unknowingly exceed their package limit can it? Surely they would make a lot more lot more people if they made mobile internet more acessible.


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