Will AT&T introduce usage-based pricing?
Ralph de la Vega, AT&T head of consumer services, has hinted at usage-based pricing strategies in response to increased consumer data consumption, according to stories on the Huffington Post and Reuters newsfeed. De la Vega spoke at a recent USB investor conference, saying that AT&T was working on improving service to the strained New York and San Francisco services. AT&T may soon introduce pricing tiers that would penalize high-bandwidth users.
Although none of these write-ups mentioned the iPhone, it has facilitated greater and greater network demands with its easy-to-use App Store software and fully-rendered Internet access. That access, using Mobile Safari's browser in particular, was a big selling point in early Apple iPhone commercials.
Although App Store has historically limited high-bandwidth applications to Wi-Fi-only usage, AT&T has recently given the go-ahead to allow Voice-over-IP apps like Skype to use their 3G network. A tiered pricing system for greater usage might help offset increased demand but would need to be backed by an enhanced network infrastructure, which AT&T appears to be building.
The 2-year contracts for the new 3GS iPhones introduced this summer will begin to expire in the 2nd quarter of 2011.
TUAW has contacted AT&T's PR department to request a statement about possible pricing tiers and usage choking but did not hear back by the time this post went live.
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Ralph de la Vega, AT&T head of consumer services, has hinted at usage-based pricing strategies in response to increased consumer data...
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I suggest those commenting here take another look at the situation and ask themselves if they would consider it reasonable to expect "unlimited use" at a fixed tier on their water or power bill. Of course you wouldn't as if you were charged for 60 psi and not gallons or for 120 volts and not kilowatt hours you would have no motivation to be circumspect in your usage. We would have, regarding power and water, the circumstance we have now with data, namely people leaving the tap open or the door open with the air conditioner on. That's right. We'd have pressure drops and voltage drops because the product is not pressure or voltage it is gallons and kilowatt hours.
December 13 2009 at 9:51 AM Report abuse Permalink rate up rate down ReplyNo joke, I once received a monthly bill from ATT for $4500 on a single data card in 2003. It was an unlimited plan. Seems the small print said I could only use it "unlimited" in my home city. Drove to a conference an hour away, and ring went the meter. And yes, they made me pay it. All of it.
December 10 2009 at 3:13 AM Report abuse Permalink rate up rate down ReplyThere's one problem inherent in AT&T's statement: they do NOT clarify what constitutes a "Smart Phone". While we, as consumers and fans, may assume that it's items such as Blackberries and iPhones, it's possible that AT&T has broadened the definition to include phones that most of us would not consider to be true smart phones. This would result in a lower percentage of the market for heavy iPhone users having a higher percentage of the total bandwidth used.
In example: If what we'd consider to be smart phones includes only iPhones, Blackberries, and Treos, then the iPhone would have a higher percentage of the total (perhaps 50%) and use about 50% to 70% of bandwidth.
However, if the definition of smart phone is expanded to include any phone that is capable of receiving email and web browsing, then even phones like the Motorola Razor would be included. In this circumstance, the iPhone might have only 10% of the total so-called "Smart Phone" market share, but would still use a HUGE amount of the total bandwidth available.
Without having concrete data from AT&T as regards which phones were included and excluded in the study, it is impossible to draw a true conclusion- and to know if AT&T is telling the truth. In the end, it is also entirely possible that AT&T is using the broader definition of "smart phone" so that they have political clearance with the public and government to limit data plans.
Another good reason for Apple not to renew their contract in June next year I hope they will have multiple carriers, as much as I would love to have an iphone I will not get one if it's with AT&T, hopefully T-Mobile will be one of the carriers.
December 09 2009 at 5:30 PM Report abuse Permalink rate up rate down ReplyThis is absurd. Everyone on the iPhone is pretty much a high bandwidth user given what it can do on 3G, so technically everyone is going to get penalized.
Penalized for something AT&T is responsible for, their network.
Comcast has been lying about the existence of data hogs.
http://gizmodo.com/5419179/is-the-bandwidth-hog-a-myth
How do we know that AT&T isn't lying too. And what about iPhone users that use almost no data like my wife? AT&T is welcome to write a fat check to us as soon as they tax the 'data hogs.'
WRONG direction AT&T. Follow the T-Mo's and Sprints and go all in for a fixed, planable/budgetable fee.
Frankly what I like is using the device and not thinking about it. Bad enough I have to watch my minutes else I get a surprise at the end of the month. Who knows what a stray app might to do my data usage and then what? sorry charlie - pay up.
Furthermore, pay for use only works in systems like the Euro ones where incoming calls and texts are free. After all, I can't control if inbound connections are made to me so it's incredibly unfair to charge me for that "usage."
Stick to the flat fee models and figure out how to make it work in your cost structures people.
We need to all cry out and not let companies, politics and special interest groups control us. AT&T made a promise in the form of a contract. It was unlimited data. I feel that is what it means - no matter what. Many things have happened to the American people because we did not care enough to get mad and do something. The whole lies and partial lies that Politicians and special interest groups have laid on the American people is a shame. They are ruining our country. We need companies and individuals that work hard to be the best they can be and to invest in their assets wisely. Lots of things lately have been finally coming to light. NASA lies and repetitive adventures. Climate change harassment. Environment protection - ha.
All of this points to the same end. If we use things wisely and not take advantage of situations, companies or people then we all would be better off. I agree that AT&T needs to get it together, but not for the reason most of you do. I have very few dropped calls, if any, and responsive data access. Would I like more features, sure. But, I am very happy at this time considering where I was with Sprint a couple of years ago.
What we need is for american people to voice what we feel in a responsible way. And then what we really need is for government to quit trying to solve our problems. I could go on, but....
It's coming... Worked formerly on wireless broadband cards (2007) and AT&T was trying to establish a plan for pay per usage then.
Pay for usage > unlimited > pay for usage
Um, don't forget all those iPhones in the US are all locked to AT&T. They aren't even unlocking them after you have completed your 2-year contract with AT&T. Why would they unlock the phone just so you can go on another network with it? Sure, you can jailbreak it, but that's a big pain in the a$$.
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