Why Your Phone Service Is So Expensive [telecom]

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By David Leonhardt

Many Americans pay close to $100 a month for smartphone service. And this pricetag isn't some natural reflection of the service's value. In many other countries, smartphone plans cost much less.

The economists Luigi Zingales of the University of Chicago and Mara Faccio of Purdue estimate that Americans pay $50 billion per year more than they would if they instead were paying European prices - for the same quality service. That translates into about an additional $30 per month for every American household.