Why are internet and cell phone rates so high
There is no doubt that internet and phone bills make up a large portion of each household\’s monthly expenses. And if you have everything in one package, it is possible to lump them together, since they are usually billed by the same provider. However, the amount paid this way is not small.
While it may seem like there is no other way, it is clear from examples abroad that this is not the case. These services are much cheaper than in our country. Moreover, it is often possible to negotiate exclusive offers that are never included in the standard package. It is therefore worth considering why so many of us pay such high rates.
The reason for this is, of course, simple: the higher the price, the more likely it is that you will get a better deal. And they realized that they could make much more money trading than competing with each other. In a normal market environment, one would have to keep prices lower than competitors in order to win customers. But if they agree on how to divide the market and how much to charge for certain services, they can make more profit.
Of course, such an agreement is only possible because there are only three providers in the country. Of course, it is possible for foreign companies to enter here and level the playing field. Unfortunately, the position of the three major players in our market is such that they can easily trump anyone who tries to do so.
These and similar actions are of course illegal under the law, which is why antitrust laws exist. Unfortunately, antitrust law rarely works. In fact, it rarely works, first, because it lacks the resources to actually do so and, second, because it lacks the will to do so. Like it or not, corruption exists.
Thus, unfortunately, it is already clear that there is nothing we can do. The vast majority of us need the Internet and cannot rely on public Wi-Fi. Whether we like it or not, we have no choice but to keep paying the big bucks.