In the U.S. cellular consumers without a monthly text plan are charged $.20 per text. At the gigabyte rate for data transmission this is around $383,000 per gigabyte. Given the current wholesale telco cost of moving data this amounts to a stunning 15,000,000,000% markup.
Let that margin sink in for a moment. Breathe. Have you ever paid for a $.20 text? You’re paying too much. Far too much.
In the U.S. cellular consumers without a postpaid contract plan are charged $.10 per minute of talk time, rounded up to the minute. Average two year postpaid contracts are $2800, including smartphone. Notwithstanding the outrageous markups for U.S. consumer access to cellular data, the government sanctioned digital telecommunications oligopolies terminate post-paid customers for excessive roaming and/or excessive data consumption.
Let that reality sink in more a moment. Breathe. You are paying $6 per hour to talk to your loved ones. Oh, your loved ones live in a different country? Now you are paying $60 per hour to talk to your loved ones.
Let’s go to the bank and send some of your loved ones some money. If you have a good banking relationship and you send a lot of money you could pay as little as 2-4% of the total transfer. If you are a migrant moving from Tanzania to Kenya you could pay 22% to make a $200 transfer.
Let’s go to the bank and try to borrow some money. If you have a good banking relationship and good credit and good income, you may be offered functional lending facilities with 5% interest. If you have no banking relationship or bad credit or no income, if you are offered limited credit at all you could pay 300% interest from legal modern payday lenders.
Today, after years of paying $1200 per year for cellular service I utilize VOIP/SIP calling to call for approximately $.01 per minute anywhere on the planet. With Wi-Fi service nearly blanketing the planet VOIP/SIP calling is available nearly everywhere. Cellular companies no longer have a monopoly over my data.
Today, I transferred 7 NXT (about $0.35) to 73 different people on the planet. This cost 73 NXT (about $3.65). This process happened securely through the green, sustainable Nxt network. The cost of sending money to 73 different people in different countries all over the globe at your local bank will cost you at least an order of magnitude more than $3.65.
The irony of the high smartphone cost to U.S. consumers is that the demand has driven innovation and lowered price points globally through the functioning of the free markets and Moore’s Law resulting in ubiquitous cheap smartphones. These cheap smartphones combined with Nxt Clients will drive the adoption of the Nxt cryptocurrency platform, allowing billions of transactions like the ones I made today. You can get started at www.mynxt.org
Feel free to publish this text at your site.
To learn more: http://nxtcrypto.org / http://mynxt.org
To start with Nxt: Online wallet: https://wallet.mynxt.info Clients: http://www.nxtclient.org/
To trade NXT: http://cryptsy.com / http://bter.com / http://vircurex.com / http://poloniex.com / http://dgex.com
NXT thread on Bitcointalk: http://bitcointalk.org/index.php?topic=345619.0
NXT Source Code: http://bitbucket.org/JeanLucPicard/nxt-public/src
NXT Whitepaper: http://wiki.nxtcrypto.org/wiki/Whitepaper:Nxt
Author: Brian Snyder