Mobile data: Why India has the world's cheapest
bbc.com
bbc.com
So, I headed off to the mall to compare mobile AP plans. Literally every option was either mega expensive (think multiple hundreds of dollars per month for 100 GB or the price was right but the service area was crap).
A lot of the mobile data plans actually only apply to direct usage from your phone. Not when using it as an AP (tethering). Those all have separate bandwidth limits. The standard amount on most plans (that you also have to pay extra for) is around 10 gigabytes. And, I didn't even find a normal consumer plan from ATT / Verizon (the only carriers with good service here) that let you buy more than that. You have to buy a super expensive business plan.
So yeah, fuck US LTE data plans. Absolute garbage if you actually try to use it for any serious work from a PC.
I beg to differ - I have 2 hotspots from Verizon (15GB each -> 30GB total/month) and they support my full-time work as a remote developer. I have to avoid watching HD video, but that's effectively the only restriction I have.
Not to take away from the larger point about US data plans, which is generally true.
But the fundamental market philosophy of the US is to exploit individuals' laziness. If you're unwilling to do the basic modern necessity of taking control of your phone, then you perfectly fit the profile to be their victim. If you're just walking into a carrier store/kiosk and asking them what they overtly market, you basically have "$$$" written on your forehead.
Practically - if I needed an LTE connection, I'd setup a fixed antenna aimed at a Sprint tower on a Clearwire-settlement plan, look into buying a grandfathered Mobley device on eBay, or accept a slightly lower speed for a consumer "unlimited data" plan (eg $55/mo for 3Mbps at Cricket).
Looks like I should be able to do it with this from my Apple device: https://github.com/rickyzhang82/tethering/wiki
My other phone is in Mint SIM, which costs $20/mo for 8gb of LTE and works great, and tethering is shared with regular data.
With an AOSP ROM like LineageOS they can't detect it from the phone itself, but there are still some differences in the packets that a phone would send vs the packets a computer would send (you can Google about how to hide tethering on T-Mobile and find some discussion on that); it's not very hard to change your settings to avoid that method of detection.
This is my simplistic understanding of the state of play based on the last time I looked into it but as mentioned above it's easy to Google.
iptables -t nat -A POSTROUTING -j TTL --ttl-set 65
You will need TTL target built into the kernel of the ROM you are using. LineageOS is unwilling to do it officially, so I build my own with it enabled.
It's a good idea to only use ipv4 when doing this. A few services are detected on TMUS, so for those VPN. Sprint doesn't seem to care, but they have a patent on TTL detection too from around 10 years ago. I normally do not VPN, but I do use my own DNS since I don't like carrier hijacking.
Set that option and your carrier can't tell if you're tethering. It doesn't require root and works on every phone I've tried it on.
For Sprint, everything is old and weird... so they just look at ports like it is 12 years ago. (OpenVPN's default port is bad, 443 is good though)
Sprint is weird, since they really only have halfassed voLTE they rely on a giant legacy CDMA network that should have been put out to pasture 5 years ago. But they do have the largest number of roaming agreements if all you care about is ability to call (and not have data). They do have fast data but it requires you to be in line of sight of a tower, not have walls or wet leaves in the way, and have a phone supporting HPUA so you can actually upload things.
AT&T's network has basically zero investment in recent years, unless in Georgia or a handful of other markets it's the worst of the 4. Poor spectrum planning, low capex, the only reason they are #2 is because they keep buying up companies with customers (shitty Mexican carriers and DirecTV).
Verizon still seems best (hardware, spectrum planning, roadmap, coverage), but no plans ideal for my needs. Poor for travel.
I use a Verizon reseller (Total Wireless); it works great and is pretty cheap for the US.
Travel is not a problem with Verizon: Verizon phones are all unlocked, and have SIM cards. Just buy a prepaid SIM card when you're out of the country and use that for data. It's generally much cheaper than any service in the US; on my recent trip in Europe, it cost me 15 Euros for a 3GB SIM card, and I don't think I used half of that in my 2 weeks there, even though I was using my phone extensively for navigation and more.
Three UK will let you roam to the USA and is $8 per month. $8 is the total plan cost, and there is no supplement for roaming!
Google Fi can also do cellular over WiFi if your phone supports it.
Google Voice now supports data calling as well, so you can have same end result of WiFi calling even if your carrier or phone will not do voWiFi.
I don't see the appeal of Fi at all.
So you have data SIMs that share from the same pool? I use a few hundred GB's per month. How much would this cost on Fi? I currently have 4 unlimited SIM's, a extra voip number, and a low speed SIM with one of my line numbers copied. It costs about $160/mo. If I run into an area where I don't have service, I have a second provider that's also unlimited and costs $4/mo.
According to OECD, the Purchasing Power Parities (PPP) for India is 17.729 , UK is 0.691 and US is 1.0 [0]. That's a huge difference and hence, ignoring the purchasing power will not give you a full picture about the "cost".
[0] https://data.oecd.org/conversion/purchasing-power-parities-p...
Prices could be mitigated by competition but usualy we have oligopoly, by regulators (EU and roaming charges) or by taxation (licences to operate).
I always laugh when similar company with similar shareholders charge 15 times more in one country then in another.
Digi Malaysia extending prepaid for 1 year 68 ringit 15$, dtac Thailand 1$. Both owned by Telenor.
The bread and butter of mobile operators is infrastructure and spectrum licensing. FWIW I think there's a fair amount of competition, at least more than you see in the ISP space. Building towers is usually much more straightforward than trenching fiber/cable.
Mobile companies in general don't compete with each other at all and just continuously raise prices until too many customers starts leaving or regulators and politicians start to notice.
My local WISP uses AirFiber[1] for all their backhauls, mobile can be different but nothing is an absolute.
There are remote towers that actually have satellite backhaul. You can tell when you're on UMTS/HSPA or LTE and the latency is like 700ms. The companies are trying to eliminate them as they are costly to operate.
There was a bit of a scandal back then because of the way the Dutch government handled that auction and tried to squeeze as much money as possible out of the various bidding companies.
But the only other solution I can see is to have the government just pick a company and hand them the license, and that's effectively guaranteed to be breathtakingly corrupt since the incentives to cheat are overwhelming. At least with the market solution the money goes into the government's general fund instead of into the pockets of the party official in charge of making the decision.
Isn't it exactly the other way around? They bid high because they estimate that they will be able to make back the investment. The sole reason for making that investment is to sell it on to customers.
It’s a but like broadband and electricity deregulation in UK or NZ.
The majority of cost aren't spectrum, ( as a few comment below suggested ) or Infrastructure, ( Payment made to Nokia, Ericsson, Huawei, or ZTE ), but rental agreement for all those Base station.
It is not exactly license to print money like Casino, Oil industry. The telecom industry margin are generally quite thin.
The customers don't literally participate in the auction, obviously, but the operators bid based on what they think customers will pay. It's like the representative democracy version of an auction.
PPP is only relevent for things that have different prices in different countries (housing, food, etc). There are many things that cost roughly the same wherever you are: oil, macbooks, cell towers, etc.
As a general rule, the easier something is to arbitrage, the less PPP matters. The cost of arbitrage includes transport costs, taxes, and depreciation schedules (vegetables would be cheaper in India vs US because they are hard to transport, for example).
Of course this is only relevent if the US companies aren’t making crazy margins (I don’t personally know, but I suspect it’s possible).
Digging down power and fiber to a tower is not cheap.
Some metrics to look at
GNI(PPP) Per Capita in Int$ : India - 6,980 / UK - 42,560 / USA - 60,200 [0]
GDP (nominal) per capita in US$ (World Bank) : India - 1,940 / UK - 39.720 / USA - 59,532 [1]
One of those countries, is not like the other two.
[0] https://en.wikipedia.org/wiki/List_of_countries_by_GNI_(PPP)...
[1] https://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nomi...
It’s about arbitrage. Just quoting some PPP stat from wikipedia is irrelevent and missing the point.
Why do you think PPP is different in different places? It’s not some magic wand you can just wave around.
Yes and it happens regularly. One example :
Apple Music - USA $9.99 per month, UK £9.99 per month, India 1.74 US$ / 1.32 GBP
Who knows if that accounts for all of the difference, but excluding that factor makes the whole thing useless.
Consumers would rather go to a big box store where they know they’ll pay an okay price all the time instead of a market where they’re expected to mentally calculate the actual value of every good and negotiate down to a magic number.
Even EBay couldn’t keep the auction concept alive.
Auctions (effectively what these negotiations are) are great for one thing: unique and expensive objects.
It’s a pain to have to spend hours a year negotiating every $50/month that goes out of my pocket. That’s a lot of unproductive hours against a machine with thousands of employees working against me.
Auctions aren't the same as bargaining. Auctions have a lower price that is constantly going up. It just helps to reveal the max that a buyer will pay.
Bargaining is a waste of time if you have alternatives that don’t require it to get a good price.
Auctions has buyers that are willing to pay more up until a point. Negotiating at the market has a seller that is willing to pay less up until a point.
The same rules largely apply.
Ah, per other comments: Jio
This is why oil is the same price pretty much everywhere in the oil. Because if oil was cheaper (including taxes and transport) in one place, someone would buy it and sell it somewhere else.
When everyone is doing this, it equalizes the prices. This is because arbitrage drives up the price of cheaper oil and drives down the price of the expensive
Oil is the same price for many reasons (least of them being OPEC), but largely because of your point - there is a global market.
How exactly is the US or UK supposed to export cheap data from India?
From the report [1]:
Tower cost in India (40-60k$) due to low land rent cost. Tower in Latin America (120-180k$)
Tower in UK - 200-400k£ [2]
[1] http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9M...
[2] https://www.ft.com/content/981f7084-c515-11e5-b3b1-7b2481276...
The entire company is run by morons.
Another thing Reliance has done with me in past is to sell my billing data to a fake debt collection agency.
But that is poor logic. My guess is 90% internet surfing is waste of time and energy. So..
https://golantelecom.co.il/web/
Overall, Israel is a very expensive country excluding mobile plans...
* Notice, that in the BBC article they suggest there is haggling involved in getting low prices. so we also don't get much information what limitations imposed.
From what I've read on the article above some plans have daily data-cap and you pay for a specific amount on data monthly.
I think what matters more than the price for the gigabyte is what you get in service for that. I'm absolutely happy to pay 50 EUR or more a month if the service is good.
Indian 4G rarely gives the 40-50 Mbps or more that you can see in other countries
Not really true. You can just have smaller cells - many more towers using lower power.
It just costs more to have smaller cells.
They were getting 50% packet loss and so the throughput was maybe a tenth of what we were hoping for. Streaming really hates high packet loss rates, unless you've built FEC into the protocol (and we hadn't)
JIO 4mbps symetric
Vodafone: 8mbps down (but it was capped per month on a limit)
I got 60mbps down on the CMHK in Hong Kong.
There are service outages, issues with coverage, and there are serve limits on the data.
I used JIO and had an average about 4mbps speed. Also, there has been concerns about censoring sites. (see r/india.. they blocked reddit in the last week)
I paid about 199inr (~$3) and got 2gbs per day for a month.
The lower speed in India is at least partially due to it being heavily used instead of sitting idle because people don't want to blow out their cap. IMHO this is more egalitarian. They aren't keeping the poors off of the system just so the elite can download their cat videos faster.
?! I'm paying about $43 for 8gb on the Verizon network. https://www.pagepluscellular.com/plans/
> They aren't keeping the poors off of the system just so the elite can download their cat videos faster.
They're oversubscribed. I'm not sure where this helps "the poors" to stay subscribed to the service.
UK 4G speeds are generally not as great as most of Europe either from what I know.
Not bad at all, blazing fast compared to most WiFi connections here in northern India (Himachal Pradesh).
Now if the power would stop cutting out... maybe in a few more years :)
It's not even high season yet, I imagine it will only get worse with mass influx of people stressing the already shaky grid.
Otherwise, 3GB takes you a long way, certainly enough to load Slack and maybe check out HN. \s
Jio, will soon become a monopoly and as the article says, might jack up prices when they have the bigger slice of the pie. An acquisition of the second best then would seal the low price game and everything will go up then. Thats what Airtel was doing when they were number 1 a while back.
Jio comes bundled with value added free services like JioTV, JioCinema, JioMagazine, JioMusic(JioSaavn now) and bunch of other apps.
India is a price sensitive market and hence Jio would keep prices lower for as long as possible to keep other players out. Jio is already posting profits.
They are in it for the long game. The bottomline is that prices may not go up anytime soon.
Second, Jio frequently blocks VPN connections. Proactively and sometimes without reason even if there’s no government order. Sometimes, I’ve had to use techniques from blog posts about bypassing the great firewall of China to be able to connect to VPN services. Its not as ridiculous as the actual GFW but the signs are there.
Reliance is also engaged in a plethora of businesses, especially consumer facing ones and have shown increased desire to link it all together.
[1] https://in.reuters.com/article/reliance-telecoms-jio/from-bi...
But because 4G is the only way to get internet, it actually becomes more expensive very quickly. I route all of my internet traffic through my phone or through my 4G mobile hotspot.
So I think the real reason that the data is cheaper is because 4G is the only way to get data, if your a consumer or a business. So the pricing reflects that.
Because in the first world we have fiber optics, this allows mobile companies to charge a ton of money per Gb, since no one is downloading large files with it anyways.
In 2012 the data in India was too much expensive, like a GB or two for a Dollar. Around 2017, It was About Two GB every day for 30 days for Two Dollars total. Amazing. 4G. Good coverage. Airtel. Here in US ATT gives me 3GB for a whole month, & extra $15 if I go over 3 for next 1 GB.
Infact from few days I am trying to find a cheaper data only prepaid pay-as-you-go Sim for my second phone.
[1] Technically less, because the £12 includes calls and SMS as well.
It's one of the few things I feel blessed about while living in this country.
It’s very possible that the strategy may not work, but if it does (and the article provides no evidence it won’t, in fact, it reveals that Jio is actually making more money per subscriber than the average telco), then there is no reason to believe prices will need to go up.
Also not related to data plan but 22 out of 30 most polluted cities are in India. Just to put in perspective that their is more to life than cheap data plans. Broadband/data price is oddly a perennial obsession for relatively well earning group of people here.
https://www.cnn.com/2019/03/04/health/most-polluted-cities-i...
What does impact me daily and affects QoL that I personally can affect? Internet speeds,Bandwidth rates and the quality of my next meal.