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in India (+91) by preet355

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To be really honest with you, the data rates initially charged by these companies were actually lower than the cost incurred to them. Most of the experts initially questioned this stratergy but the companies responded that they were looking to make profits by increasing customer base i.e. Higher the cutomers, lower the per head cost & higher the profits.

But then as industry experts clarify these costs were not kept low just to add more consumers but also to make them habitual to data sevices on mobile like facebook &,whats app etc. Now even if the rates rise gradually , the customer would not mind and will end up paying the rates which companies actually wanted them to pay.

The companies initially didnt wanted to increase the price DIRECTLY but tried to deploy stratergies which were against net neutrality. Then they also came out with a plan where they would charge the data calls (like made on skype),at separate rates; but all of this failed.

Now, they are not left with other options but to increase the data charges.
by sandybibbs
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That remaining data is what their profit. These unused data directly converts into their profit by providing those to other users.
by jenutheangel

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