Submission + - US mobile broadband is massively overpriced, claim (broadbandexpert.com)
RichWeb Media Ltd writes: March 2010: Research compiled by international broadband comparison website Broadband Expert (www.broadbandexpert.com) reveals that mobile broadband users in the US pay almost three times more for their service compared to users in the UK and Australia. In addition, US consumers looking to purchase a USB modem as part of a prepaid plan will pay up to eight times more (see pricing appendix below).
To make matters worse, US consumers also receive a dramatic lack of choice compared to other parts of the world when it comes to selecting the amount of data allowances they receive, the website says. With service operators offering only very small or very large data allowances, consumers are very limited as to the type of plan they opt for, unlike in other parts of the world.
Rob Webber, commercial director at Broadband Expert, says that high prices and lack of data choice is stifling growth of mobile broadband in the US and that if mobile broadband is to truly take off in the US, tariffs need to be brought down to fall inline with the rest of the world.
He says: We manage broadband comparison sites in the US, UK and Australia and can clearly see that sales in the US are lagging behind other regions. We have seen a huge growth in the number of people buying mobile broadband devices in the UK and Australia over the last two years, a trend that is not reciprocated in the US. We think this is mainly due to the fact that customers are put off by the high prices.
"Having closely tracked the UK and Australian markets mobile broadband sales over the years, we have witnessed how demand for mobile broadband started slowly and then rocketed once providers cut prices; opening the market up to general consumers and not just business users. We think the big brand service providers in the US should start to price mobile broadband plans more competitively, which would not only benefit broadband users, but would give a boost to the whole US mobile broadband industry.
Price breakdown information:
Typical mobile broadband contract prices US, UK and Australia:
A typical two year mobile broadband contract in the UK costs $552, compared to $1,440 in the US oe a massive $890 price difference. Australians also pay less than their American counterparts: A typical broadband service in Australia costs just $648.
USB modem price difference US and UK:
An average USB mobile broadband modem in the US costs $249 compared to $30 in the UK. This is a surprising given that mobile broadband carriers stand to make money out of the ongoing usage associated with these types of oeprepaid plans.
Data allowances; US, UK and Australia:
Broadband Experts research shows that the current range of plans from the main providers offer either 250Mbs which is too little for most users and may result in expensive charges for exceeding the download limit, or 5Gbs which is far more than the majority of users need. In both UK and Australia consumers can choose to receive 1Gbs, 3Gbs or 5Gbs of data per month.
Broadband Expert aims to offer advice and comparison to consumers to help make choosing the right broadband or mobile broadband package simple. Broadband Expert operates broadband comparison sites in the US www.broadbandexpert.com , the UK www.broadband-expert.co.uk and Australia www.broadbandexpert.com.au .
To make matters worse, US consumers also receive a dramatic lack of choice compared to other parts of the world when it comes to selecting the amount of data allowances they receive, the website says. With service operators offering only very small or very large data allowances, consumers are very limited as to the type of plan they opt for, unlike in other parts of the world.
Rob Webber, commercial director at Broadband Expert, says that high prices and lack of data choice is stifling growth of mobile broadband in the US and that if mobile broadband is to truly take off in the US, tariffs need to be brought down to fall inline with the rest of the world.
He says: We manage broadband comparison sites in the US, UK and Australia and can clearly see that sales in the US are lagging behind other regions. We have seen a huge growth in the number of people buying mobile broadband devices in the UK and Australia over the last two years, a trend that is not reciprocated in the US. We think this is mainly due to the fact that customers are put off by the high prices.
"Having closely tracked the UK and Australian markets mobile broadband sales over the years, we have witnessed how demand for mobile broadband started slowly and then rocketed once providers cut prices; opening the market up to general consumers and not just business users. We think the big brand service providers in the US should start to price mobile broadband plans more competitively, which would not only benefit broadband users, but would give a boost to the whole US mobile broadband industry.
Price breakdown information:
Typical mobile broadband contract prices US, UK and Australia:
A typical two year mobile broadband contract in the UK costs $552, compared to $1,440 in the US oe a massive $890 price difference. Australians also pay less than their American counterparts: A typical broadband service in Australia costs just $648.
USB modem price difference US and UK:
An average USB mobile broadband modem in the US costs $249 compared to $30 in the UK. This is a surprising given that mobile broadband carriers stand to make money out of the ongoing usage associated with these types of oeprepaid plans.
Data allowances; US, UK and Australia:
Broadband Experts research shows that the current range of plans from the main providers offer either 250Mbs which is too little for most users and may result in expensive charges for exceeding the download limit, or 5Gbs which is far more than the majority of users need. In both UK and Australia consumers can choose to receive 1Gbs, 3Gbs or 5Gbs of data per month.
Broadband Expert aims to offer advice and comparison to consumers to help make choosing the right broadband or mobile broadband package simple. Broadband Expert operates broadband comparison sites in the US www.broadbandexpert.com , the UK www.broadband-expert.co.uk and Australia www.broadbandexpert.com.au .
