Internet Data (Bundle)

N

ncutshe

Member
Joined
Jan 16, 2012
Messages
26
Reaction score
0
Dear fellows. Do you know where the mobile operators get the data they sell us? One customer care consultant admitted she didn't know but did confirm that, by forfeiting data, that's one of the ways her operator makes money. But where does this data originate from? The data they sell to us.
 
It's not data at all. You are paying for a share of the larger fixed-size bandwidth pipe to other networks. So what you call data is effectively transit or your share towards the cost of carrying large volumes of data from say a server to your device. Forfeiting "data" is not how the operator makes money per se. They do however make money on oversubscription. So if the overall pipe (a simplification) costs R100million per month and each of 1 million customers pay R200 per month, then the operator effectively brings in R200million - this covers the cost of the pipe and other things (salaries, marketing, promotion, amortisation of network equipment then profit for shareholders etc).

The per-megabyte system of paying for "data" is just a convenient and "fair" way of billing you and limiting your usage to a fixed amount.
 
gripen said:
It's not data at all. You are paying for a share of the larger fixed-size bandwidth pipe to other networks. So what you call data is effectively transit or your share towards the cost of carrying large volumes of data from say a server to your device. Forfeiting "data" is not how the operator makes money per se. They do however make money on oversubscription. So if the overall pipe (a simplification) costs R100million per month and each of 1 million customers pay R200 per month, then the operator effectively brings in R200million - this covers the cost of the pipe and other things (salaries, marketing, promotion, amortisation of network equipment then profit for shareholders etc).

The per-megabyte system of paying for "data" is just a convenient and "fair" way of billing you and limiting your usage to a fixed amount.
Click to expand...

Wow thanks a lot for the very informative explanation :D
 
ncutshe said:
Dear fellows. Do you know where the mobile operators get the data they sell us? One customer care consultant admitted she didn't know but did confirm that, by forfeiting data, that's one of the ways her operator makes money. But where does this data originate from? The data they sell to us.
Click to expand...

you looking at data is a physical product, you should rather look at it as being more like Toll service (The real E-Toll :D ) charged for using the road on the information super highway
 
You must log in or register to reply here.
Back
Top
Sign up to the MyBroadband newsletter
X