> You can serve the same number of customers for less cost.
No, upgrading the network allows you to serve more customers at higher cost (the cost of the upgrades). If you have unlimited data plans, you can only recoup those upgrade costs by recruiting more customers because existing customers pay the same regardless of the speed. Recruiting more customers is also costly and affected by many more factors than just network quality. The connection between network upgrades and increased revenue is tenuous and indirect.
In contrast, with pay-per-GB, network upgrades increase usage and thus increase revenue from existing customers as well as new ones. The connection between network upgrades and increased revenue is direct and immediate.
I agree that $10/GB is far too expensive; I'm sure Google would love for it to be cheaper but the pricing isn't their choice to make. When carriers get some competition from Project Loon and/or Elon Musk's satellite thingy, hopefully prices will go down.
> No, upgrading the network allows you to serve more customers at higher cost (the cost of the upgrades)
Upgrades are a one-time cost. You charge a higher rate for access to the faster network until the investment is paid off then you phase down to all customers. Then your operating cost is lower per subscriber in the long run.
These days, upgrades are a continuous cost. By the time you've paid off an upgrade it's time to upgrade again. Charging a higher rate costs you customers, and with fewer customers you don't even need the extra capacity you just bought. Also many customers are on contracts so you can't increase rates right away.
In contrast, with pay-per-GB, upgrades increase revenue automatically without losing customers. You don't have to increase your rates and you can probably even decrease them and still increase revenue.
No, upgrading the network allows you to serve more customers at higher cost (the cost of the upgrades). If you have unlimited data plans, you can only recoup those upgrade costs by recruiting more customers because existing customers pay the same regardless of the speed. Recruiting more customers is also costly and affected by many more factors than just network quality. The connection between network upgrades and increased revenue is tenuous and indirect.
In contrast, with pay-per-GB, network upgrades increase usage and thus increase revenue from existing customers as well as new ones. The connection between network upgrades and increased revenue is direct and immediate.
I agree that $10/GB is far too expensive; I'm sure Google would love for it to be cheaper but the pricing isn't their choice to make. When carriers get some competition from Project Loon and/or Elon Musk's satellite thingy, hopefully prices will go down.