Does the amount of data a customer use affect the service providers costs?

Question

I'm looking at getting a 1gb plan or a 5gb plan from a cell phone provider. The price difference is quite heafty. Does 'streaming' 5 gb to a customer cost the provider more than just streaming 1gb?

Answer

No, but it cost a lot to set up the higher streaming amounts, so you are basically "renting" an allocated amount of the provider's total streaming bandwidth.

Does the amount of data a customer use affect the service providers costs?

Answers (1)