Why is Data so expensive when we live in such a modern society?

[DGB]

Hey Everyone!

I have been an O2 customer for over 10 years and this has started to grind my gears as to why our Data is Stupidly Expensive and it is not just for this phone company but every phone company that exists! 

The Internet has been around for enough years that it is not even considered a luxury it is a basic thing now like food and water. So when I go on to see silly data prices for crazy low data, why is 500MB even an option? why is 1GB even an option? what is this the 90's? what makes me laugh is that the price for either of those two options to add on is laughable. it is like going to buy milk for £50 when milk is not even a luxury buy. 

The minimum Data packet should be no less than Double figures (10GB) for £5.00 because that is a reasonable charge for a reasonable amount of data and then going into double price figures for 20GB+ but still keeping it below £30 because real wifi is cheaper than that a month and that is unlimited. Honestly, Phone companies need to move forward and be more reasonable with these silly prices! 

if no one agrees with me then fair play I just wanted to say! 

[MI5 · Accepted solution]

@DGB 

The simple answer is due to bandwidth and what's available to each network which they have to purchase and license. But yes, it is an expensive commodity.

[adec]

yeah the spectrum bandwidth for mobile data is very narrow.. and with all major players competing for it, it does make it expensive.. kinda surprised noone has come up with an alternative, acceptable solution.. i'm sure there must be great minds behind the scenes looking at it.. we'll just have to wait....

[madasaf1sh]

@DGB 

It all boils down to the costs needed to provide people with Internet Access, one of it is provided by anyone for free, and its expensive to provide

1. Speed costs money, the hardware to provide you with signal runs into 6 figures per location, 

2.  Backhaul / Bandwidth from the mast through usually dark fibre connections is not cheap, and runs to a POP

3. Network Infrastructure within a Mobile Network is complex, resiliant and most is licensable which again is not cheap... have a look at how much a CISCO core switch is and o2 will have many (not Cisco but it gives you an idea).

4. Peering - o2 will peer with the likes of level 3 so that you can access your website of choice, this is where the biggest cost comes from in  lot of ways..