Why Do We Pay So Much for Mobile Data in the US?

Posted on 22 June 2009 by


If you live in the US but travel internationally, you probably already know that using mobile data while out of country can be a pretty expensive proposition.  When my wife and I have traveled overseas, I have generally just used WiFi in our hotels because I didn’t have an air card until recently.

100 dollar bill

Just how inflated international data costs are for US customers was really driven home for me on a trip to Hungary in March.  We were staying with my wife’s parents in Budapest. My in-laws are elderly and they don’t have an internet connection, so I called my carrier to inquire about international data costs and plans for my air card (I won’t name my carrier because this situation isn’t unique to them).  Unlike some mobile phones like the iPhone, I could not just add an international data package for a month.  I would need to sign up for an international data plan with a one-year contract.  The monthly rates of the offered plans were $139.99 for 100 MB and $229 for 200 MB.  If I canceled the plan when I returned, I’d be charged the standard early termination fee.

Of course, I could use data without a plan, but at the non-plan pricing I could quickly be into thousands of dollars in charges just to check email regularly and do some surfing.  Given that, I just went without access on that trip.  (Yeah, for an always connected person it’s not easy to go cold turkey like that.)

Well, my wife and our daughter are heading back to Hungary for another visit, but I’m not going on this trip.  I’d like to be able to do some video chatting with them while they’re gone, though, so I started checking into mobile data options again.

Now here’s the kicker: when we were in Hungary in March, I saw several billboards advertising mobile data cards, so I started checking them out in advance of my wife’s trip.  One large, well-known European carrier is advertising 1 GB a month for HUF 1,980, which is roughly $12.  A one-year contract is required.

Okay, let’s do the math: a US carrier offers 100 MB for $140 per month for service while traveling internationally; a European carrier offers 1 GB for $12 per month OR $144 PER YEAR for service locally.

Huh? What?

I understand that there are issues with coordinating networks, access, and billing, so international roaming should be more than a domestic plan.  But really, that much difference in cost?  Does that seem excessive to you?  Because it does to me.

And just in case this apples to oranges comparison seems unfair, there’s an imbalance comparing domestic plans, too.  Most US mobile data plans run around $60 per month for 5 GB of data.  This particular European carrier offers 5 GB for roughly $35 per month.  The other carriers I checked were about the same.

I’m not sure what the solution to this problem is, but I know that I won’t be using international data roaming at the those rates.

This post was written by:

- who has written 110 posts on Gear Diary.

Jeff’s interest in computers and technology began by watching too many Star Trek reruns after school. His first computer was a Timex-Sinclair, for which he had the 16K – yes, 16K – add-on pack. His current interest in gadgets was spurred on by the original Palm Pilot; from there it was a slippery slope to Pocket PCs, Archos media players, Sony Cliés, and various Apple products.

Contact the author


  • http://www.gamingwithchildren.com Michael Anderson

    That exact value proposition is what has kept me from getting a smartphone for myself …

  • Pingback: Michael Stearne

  • Nos1959

    Coming to live in the US from the UK, I found that data pricing is astronomically higher here than back in the UK, . Plus, I have found that the even basic call plans much higher than in the UK. So not going with any carrier at present,& I was a big spender with my carrier in the UK, so that must say something about the pricing here!!!

    I personally think that the US carriers need to rethink their attitude to pricing, contracts, & customers in general, especially in this economy.

  • Jeff Frantz

    @Michael – I can certainly understand why you’ve been reluctant to take the plunge. It’s hard not to feel taken advantage of at times.

    @Nos1959 – I agree. We lived in London for a couple of years not that long ago and found the wireless carriers in the UK to be a lot better value than what we get in the US.

  • Pingback: Frilio Rolthnor

  • http://www.slashgear.com/ Chris Davies

    While I definitely agree that the US is overpriced and that their data roaming fees are outrageously inflated, at the risk of playing devil’s advocate I’d say all carriers fees for roaming data are high, regardless of whether US or European. You’ll always get a better deal with a local carrier rather than a roaming agreement; the difference is that it’s easier to find a pay-as-you-use SIM in European countries than it is in the US.

    I’m sure somewhere out there is a site which details all the suitable SIMs and pay-as-you-use deals for travellers (preferably complete with translations of what to ask for when faced with non-English-speaking employees in stores!) Anybody know of such a place?