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Private Line covers what has occurred, is occurring, and will ocurr in telecommunications. Since communication technology constantly changes, you can expect new content posted regularly.

Consider this site an authoritative resource. Its moderators have successful careers in the telecommunications industry. Utilize the content and send comments. As a site about communicating, conversation is encouraged.

Writers

Thomas Farely

Tom has produced privateline.com since 1995. He is now a freelance technology writer who contributes regularly to the site.

His knowledge of telecommunications has served, most notably, the American Heritage Invention and Technology Magazine and The History Channel.
His interview on Alexander Graham Bell will air on the History Channel the end of 2006.

Ken Schmidt

Ken is a licensed attorney who has worked in the tower industry for seven years. He has managed the development of broadcast towers nationwide and developed and built cell towers.

He has been quoted in newspapers and magazines on issues regarding cell towers and has spoke at industry and non-industry conferences on cell tower related issues.

He is recognized as an expert on cell tower leases and due diligence processes for tower acquisitions.

« Verizon launches 3G service? | | Verizon's new data network »

January 29, 2002

Posted by Tom Farley & Mark van der Hoek at 11:47 PM

3G, for ten minutes a day?!

I've long thought that 3G will be delayed or killed because carriers will charge too much for it. AT&T's GPRS service is too expensive for ordinary people and Verizon's new offering is similarly high priced. It seems that carriers want immediate payback for their infrastructure costs. The question is, will they get a quick return on their investment when so few people can afford such rates? Wouldn't it make more sense to charge less, over a longer period of time, to a larger group of people? I think this thought is lost on the carriers. Look at what at what Verizon is charging for their new data network.

First, you have to be spending $35 a month on a cellular plan to qualify to use the service. Next, they charge $30 a month for the service itself. For that you get 300 minutes a month, ten minutes a day on average. These count against your voice minutes so download or talk fast. Extra time cost 35 cents a minute. So you are looking at $65 dollars a month for a data rate that city wide may average 50Kbs a second. Throw in $300 dollars for the PC card you'll need to make your laptop work with the system, and, well, we're now talking about $90 a month averaged over a year. Plus whatever signup or activation fee they want to charge. For ten minutes a day?

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