Music and internet streaming over cell phone is supposed to be the killer app. And while I personally can’t wait for true mobile internet the carriers currently charge confiscatory rates.
n Verizon and Sprint charge a premium for over-the-air downloads.
While iTunes charges 99 cents per song for downloading a song onto a computer, Sprint charges $2.50 per song and Verizon charges $1.99 per song for downloads onto cell phones.
What’s more, Sprint customers are also required to pay additional fees to access the network. The company recommends that customers subscribe to one of three data plans, which guarantee them the $2.50 fee per song. The plans are priced at $15, $20 and $25 per month. The $20 plan allows people to get one free download per month. The $25 plan allows for four free music downloads per month. Beyond that, customers pay the $2.50 per song.
Verizon has revamped its pricing and subscribers are only charged $1.99 per song plus the minutes it takes to download the song, which is anywhere from 30 seconds to 1 minute.
And how many of these high-price downloads are taking place?
Sprint launched its music service more than a year ago, and it claims to have sold more than 11 million music downloads over its wireless network.
Verizon, which launched its VCast service last year, claims to be selling more than 1 million downloads per month.
Find the people paying for those downloads and you’re looking at some of the stupidest people alive. Or – kids with fully parent subsidized cell phones.