[majorlazer]

Semi-related question:

How difficult would it be to disrupt the cell phone market? I used AT&T for a few years and now I have been using Verizon for 2 years, in my dealings with these companies I have found them to be much more scummier than almost any other industry out there. They have the most complicated policies where even if you try to do everything right, you will still get dinged with fees every now and then.

Are these companies really scummy or is it just the nature of the business? I know certain industries are very difficult to operate due to specific issues like scammers and online payments (I believe PayPal were the first ones to get it right and they are one of the most hated companies).

Is it possible for a company, let's say Google, to provide an unlimited data/calling plan for a reasonable cost without all of the hidden fees and charges?

[pavel_lishin]

> How difficult would it be to disrupt the cell phone market?

Well, to start you'd have to do is build a couple of hundred thousand cellphone towers, at a couple of hundred thousand dollars apiece.

[pyre]

You're leaving out the part where you purchase a swatch of spectrum for billions of dollars from the US government.

[majorlazer]

Well I understand that but I guess my main question can be condensed into the following: Do the big cellphone companies appear to be scummy because the industry is difficult to turn a profit in, or are they just 'poorly' run companies?

[wmf]

I don't think a non-evil carrier could compete against Verizon and AT&T. Human psychology is so susceptible to "pay less now but more later" and "shiny widgets that don't work" that companies cannot afford to do the right thing. Just look at how T-Mobile is considered too weak to survive by many analysts.

[untog]

Is it possible for a company, let's say Google, to provide an unlimited data/calling plan for a reasonable cost without all of the hidden fees and charges?

It's possible in the sense that Google could become an MVNO (virtual network operator) and piggy-back off an existing network.

Except that network would have to allow them. And charge them a large price for it. So in effect, no, it isn't possible.

[lucian1900]

It certainly works for some. Giffgaff in the UK use O2's network, but have lower (and more predictable) prices.

[ropiku]

There are a lot of MVNOs in US too. Also GiffGaff is owned by Telefonica (O2).

[27182818284]

This didn't seem to stop them with Google Fiber, though.

[nstf]

It's always possible to lay new fiber. Wireless requires spectrum, which is finite and heavily regulated.

[27182818284]

I have no idea why you'd think that would stop them given how they've been involved with it off and on since at least 2008.

http://en.wikipedia.org/wiki/United_States_2008_wireless_spe...

[koalaman]

As far as I know they Google is using it's own network for Google Fiber.

[axusgrad]

It's the network effect, AT&T and Verizon have the biggest networks, therefore the most valuable.

Apparently there are lots of pre-paid plans that do what you want using the big networks, not to mention T-mobile and Sprint with their smaller networks.

[MichaelGG]

That's not a network effect. A network effect is a growth pattern related to having other users on the network adding value to you. In this case, it wouldn't matter if I was the only AT&T customer, they'd be more valuable simply because of coverage area.

[baddox]

I suspect that competing with cell service providers in the USA is very difficult, but slightly easier than competing with the Post Office for providing first-class mail service, competing with the US Mint by minting your own currency, or competing with the US military for providing national defense.