how much do they earn and spend on communications in the USA – Mobile-review.com – All about mobile equipment and technology

Hi all.

We continue to explore how subscribers of mobile operators around the world live in order to better assess the quality of services provided in Rus’.

The last three issues we systematically descended into hell and were horrified by the monstrous packages and tariffs in Honduras, Venezuela torn apart by insane inflation, and in the end we descended to the 9th circle, where the traitors live – Judas, Brutus, Lucifer and the Canadians, who found eternal torment in the icy waters of Canada Lake Cocytus.

For reference, there is no Lake Cocytus in Canada. It is in Dante Alighieri’s Divine Comedy. But given the news that Canada does not want to reveal the names of the Nazis who fled to the country, I like to think that the Nazis, at the instigation of Satan, took courses in marketing, became top managers of mobile operators and set up a digital Gestapo in the country. Nothing else can explain the horrendous cellular tariffs that apply in Canada (even in Afghanistan everything is simpler and cheaper). If you don’t believe me, read it for yourself! I also remind you that we have already studied France, Latvia, Kyrgyzstan, Korea, Kazakhstan and the leader of the OOKLA rating, Dubai.

However, Canadian operators are not alone. After all, there is also the United States of America nearby, which can give its Canadian counterparts 100 points ahead in some tariff options.

For a long time, it was customary to rightfully criticize mobile communications in the United States. Surprisingly, the States managed to miss out on both 2G and 3G, even 4G. For example, according to statistics, the penetration of 2G communications in Germany in 1994 was 71%; for comparison, in the USA this figure was at the level of statistical error. The USA continued to stubbornly hold on to 1G and could not decide which standard should be next (operators were developing, in addition to GSM, TDMA, CDMA, iDEN).

However, the Americans should not be blamed too much for their narrow-mindedness. After all, Europeans, despite the fact that they became pioneers of GSM and saw how powerfully the economy was developing, did not invest in 3G networks. But the Japanese did it. In 2007, 3G penetration in Japan was 50%, 99% in 2011. In Russia in 2008, only 8.3% of subscribers used devices with 3G support. And in the USA it’s just 3.5%. However, after 4 years, the 3G penetration level was already 82%. And there is room for debate, but the rapid development of the market was facilitated by the iPhone 3G, or more precisely, the launch of Apple’s application store.

However, as always happens, after a powerful breakthrough you need a break. In the USA they were happy about 3G, but 4G was slightly missed. 4G networks were not particularly developed, and coverage was sporadic. For example, in 2016, the average 4G speed did not exceed 12 Mbit/s. For comparison, Megafon and MTS at the same time proudly boasted indicators of 20 Mbit/s.

However, the United States approached the 5G era more consciously. However, it could not be otherwise. The country is home to almost 340 million people, and everyone wants to use the Internet on their iPhones (Apple’s share in the country exceeds 60%, and the average price of a smartphone has already reached $800). So 4G networks simply began to choke.

But Russia, on the contrary, having created a powerful 4G network, decided not to push the situation, considering that 5G is all frills. If we follow the logic of history, then the United States and Europe should slow down the implementation of 6G (the operators’ pockets are not bottomless). And Russia will press on, because it was not in vain that a couple of years ago proud slogans were heard that domestic base stations would immediately step into the 6G era. Although, objectively speaking, in Russia 5G is needed exclusively in certain zones and areas of cities with a population of over a million.

Now in the USA the communication situation is heterogeneous. On the one hand, in the same OOKLA ranking the country ranks proudly in 12th place with a result of about 80 Mbit/s. On the other hand, OpenSignal reports for July 2024 show this picture, with T-Mobile setting records, and Verizon and AT&T sadly trailing behind. By comparison, T-Mobile subscribers are connected to a 5G network about 70% of the time, which is 6 times more than AT&T subscribers and 9 times more than Verizon subscribers.

By the way, T-Mobile has accelerated powerfully only in the last 3 years thanks to the introduction of 5G. If you look at the 2021 report, when operators had just begun to deploy 5G networks, then all the leading three showed results at the level of 30 Mbit/s. And AT&T was in the lead with a result of 35 Mbit/s.

The key difference between the position of American operators and Russian ones is that they operate in a huge (340 million people) market, where subscribers have a lot of dollars. And with dollars it is convenient and pleasant to purchase new base stations and modify the network. And this is a great opportunity to talk about the income of ordinary Americans.

The USA is a prosperous country by all standards, but it is decaying. Thus, in 1971 the share of the middle class was 61%, but now it is only 50%. But the population size in 1971 was 200 million people, and now it is 340 million. It’s as if all of Russia packed up and moved to the States.

America pleases with the quality and accessibility of statistics. For example, the local Statistical Bureau shows not just the overall median income for the year (80.6 thousand dollars per year, that is, 6,710 dollars per month before taxes and 5,566 dollars “net”), but also gives gradations. For example, those born in the States have a median income of 81.7 thousand dollars, and the first generation of emigrants has a median income of 73.3 thousand dollars. The lowest median income ($56.5 thousand) is among blacks, and the highest ($112.8 thousand) is among Asians. And the very last item, which measures median income based on education level, looks quite interesting. The conclusion here is simple: university is a ticket to a well-fed life. However, this is a table with pre-tax amounts. The average tax in the USA is about 15%. And a university graduate’s mighty $126,800 turns into $104.3 thousand “net.” The full table of income after taxes with dynamics in relation to the previous year can be viewed Bureau of Statistics has table I-1 page 45.

How much does US mobile phone cost?

If we assume that mobile tariffs around the world cost an average of 0.5-2% of monthly income, then it turns out that tariffs should cost approximately $55-110. Let’s find out how things really are. And let’s look at the example of T-Mobile.

One of the features of US operators is that they do their best to bind the subscriber to them. For a long time, subscribers bought not just a tariff, but a “tariff + smartphone” package. Now in this regard it has become a little easier. But operators, for example, by default on the website indicate the cost of a group tariff for 3 people.

Let’s look at the basic Essential tariff, which costs $60 for one subscriber, $90 for two (that is, $45 per person, it turns out), for three also $90 (already $30 per person), for four $105 ($26.25) per person), and for five – only $120, or $24 per person.

At the same time, the operator allows you to connect anyone to the tariff, that is, it is not necessary to prove blood relationship. You can simply unite as neighbors at the entrance. By the way, it would be optimal to be neighbors, since everyone chips in…

So, let’s see what the basic tariff gives:

  • 50 GB of premium traffic. Premium traffic means that the subscriber has priority in the network compared to those who create an increased load on the network.
  • Free access to the 5G network (powerful!)
  • After 50 GB is exhausted, mobile Internet remains, but the priority in the network will be reduced.
  • Unlimited calls and SMS
  • Free VoWiFi calls (you can call from anywhere for free)
  • Video streaming is limited to 480p, so-called DVD quality
  • Distribution of mobile Internet via Wi-Fi only at 3G speeds
  • Unlimited calls and SMS in Canada and Mexico
  • Unlimited Internet 128 Kbps in Canada and Mexico
  • Unlimited SMS and Internet at a speed of 256 Kbps in 215 countries around the world

The tariff has both pleasant (for example, unlimited slow Internet when traveling) and annoying options (streaming, even within its Internet package, is limited to 480p resolution).

But overall the tariff looks good. Especially if you imagine that the subscriber pays only $24 (+ tax) for it. And here the question is, if the basic tariff is so good, then why buy tariffs for 150 or 180 dollars (this is for three people). Let’s explore the Go5G Next plan.

So, one subscriber will pay $100 for the Go5G Next tariff (taxes are already included in the price). For three people the tariff will cost 60 dollars per nose, and for five it will cost 54 dollars.

Go5G Next includes:

  • Unlimited 5G premium Internet (priority may be reduced during peak hours if the subscriber has already used more than 100 GB of traffic)
  • 50 GB for distributing the Internet via Wi-Fi at maximum speed, then reduced to 3G speeds
  • Unlimited calls and SMS
  • VoWiFi available
  • Apple Tv+, Netflix, Hulu included in subscription
  • Video streaming in 4K
  • Annual AAA membership (roadside assistance, including towing)
  • In Canada and Mexico, unlimited calls and SMS, as well as 15 GB of fast Internet, then unlimited at a speed of 256 Kbps
  • In-flight Wi-Fi on Delta, American, Alaska and United airlines
  • 5 GB of fast Internet in 215+ countries of the world plus unlimited calls and SMS (then unlimited at a speed of 256 Kbps)
  • Protection from scammers and scammers
  • For $5 you can connect a tablet or smart watch to the tariff

I think the tariff looks great. If we lived not as in the slogan of Tecno Fold smartphones “Everything will work out in a new way,” but in accordance with Samsung’s policy, when smartphones do not change from generation to generation, then I would not refuse such a tariff even for $100, but for $60 I would have taken it even more so. The 4K subscriptions and unlimited internet in roaming included in the tariff look very tempting. What do you think?

The offers of other operators are similar in price. But, for example, Verizon Wireless offers Apple One, Disney+, HBO Max, and even a Walmart+ membership (free grocery delivery, etc.) among its subscriptions. And also on some plans it offers the opportunity to distribute as much as 100 GB of Internet via Wi-Fi. But roaming conditions are worse – 300 minutes in 140 countries. But as an additional bonus, you can choose to activate roaming like T-Mobile.

Perhaps AT&T’s tariffs look quite interesting. As a “trick,” the operator offers to get unlimited 5G Internet at maximum speed for $86, regardless of the volume of traffic. On the $76 plan, the user gets 75 GB, and then the speed may decrease during peak hours. And on a $66 fare, the speed will always decrease during peak hours. The latest tariff is generally bad: for example, you can distribute only 5 GB over Wi-Fi at maximum speed.

It’s also nice that the operator provides unlimited SMS, calls and Internet in 20 American countries located in Central and South America. Interestingly, Canada and Mexico are not on the lists.

We won’t touch on prepaid plans in this article, because their prices are approximately the same, but all subscription services are not included in them. The difference between pre- and postpaid tariffs is that with a prepaid tariff you deposit money into your account in advance for a specific number of services and can stop using the operator’s services at any time. In the case of a postpaid tariff, a contract is concluded. Thanks to this, the operator can better plan its cash flows. This is beneficial to the operator, so it strives to attract subscribers to postpaid plans by all means. Another advantage of postpaid tariffs for the operator is that it can force the subscriber to consume more services and then bill him (that is, earn more).

Conclusion

On the positive side of US operators, it is worth noting that they provide a discount to people over 55, as well as veterans and military personnel. The discount is small – $15 – but it’s always nice.

Also, tariffs in the USA are pleasing because they provide unlimited Internet. I also like that operators provide many roaming services that are included in the tariff. We have something similar only at Megafon on VIP and Premium tariffs, where the subscriber receives 1 GB and 3 GB of traffic every month while traveling.

The rest of the content is similar: our operators also offer many streaming subscriptions.

The cost of tariffs is escalating if you compare them with median salaries. Well, if you unite in the right groups of 3-5 people, then even with an income of 5-6 thousand dollars in hand, you pay for a tariff of 25-30 dollars, or 0.53% of your monthly income. By “correct” I mean groups where everyone chips in for the tariff (usually these are groups of strangers), and incorrect groups are where you pay alone while they sit on your neck.

Source: mobile-review.com