The high cost of American tech consumption

Unconscious Consumption.

This week I put together an article about the recent fee changes to Apple’s App Store subscriptions policies. If you haven’t been keeping up, Apple changed the way the App Store handles subscriptions this week so that the company will take a 30 percent cut. It also included some stipulations that will make it very difficult for content providers to get iPhone subscribers through means other than the App Store, virtually forcing the 30 percent fee upon third party content providers.

The news reminded me of the ways American corporations gouge consumers on tech. Here’s an excerpt from the article:

While we’re talking about cellular service, why not talk about our cellular plans? You’ve no doubt heard that texting fees are a total ripoff, but let me remind just how bad things are. SMS messages are nothing more than data – tiny bits of data at that – sent along their own control channel in the wireless spectrum. That same control is used, on many networks, to tell your phone that it has service. Do you see where this is going? Let me use a simple analogy. Let’s say my friend Joe sends me a letter every day to let me know he is still alive. One day, he starts writing personal messages at the bottom of the letter, things like “lol y u so funny,” but for adding that personal message, an insignificant amount of ink on a letter he was sending anyway, the post office charges him 20 cents for sending it and charges me 10 cents for receiving it. SMS transmission costs the carriers almost nothing, but they’ll charge me $20 a month for unlimited nothing. That little tirade of mine doesn’t even address the fact that I’m paying for an unlimited data plan, yet I’m getting charged again for sending miniscule amounts of data in a text.

If you think it’s like this everywhere, think again. A 2009 study by Organization for Economic Cooperation and Development showed that Americans pay more for cellular service than any of the 30 member countries it surveyed. For an average, medium-use package – 780 voice minutes, 600 text messages, 8 multimedia messages – Americans paid an average of $53 a month. Consumers in the Netherlands paid $11.

It doesn’t stop at cell service, either. To read more about our tech expenditures, head over to the Bullz-Eye gadgets channel.