Monday, June 7, 2010

I'm Not Scared of Data Caps


There's been a lot of discussion in the industry about AT&T's move to change the iPhone data plans from unlimited to capped. I thought this was rather funny, because I suspect that I lot of folks complaining about this also complained about the fact that the only plan available on launch with the iPhone was unlimited.

It's almost a cinch that I'll be getting the new iPhone 4 as my 2 year old model is in near-dire need of replacement. While it's hard to say how much data I will use on the new phone, it turns out it's pretty easy to find out how much I'm using on my current phone.

I logged on to my AT&T account and saw that I haven't broken the 200MB mark so far this year. I can save myself $15/month cash and move down to the DataPlus plan when I get the new phone. 

Of course, tethering my iPhone to a computer and using that for Internet access would be nice. But that would require the DataPlus Pro plan at $25/mo plus another $20 for tethering. Additionally, I don't actually own a personal laptop and I already have tethering on my Blackberry for work purposes. 

But, here's a revenue opportynity for you AT&T. I wouldn't buy tethering for a computer, but I would buy tethering for use with my WiFi iPad. And, I'm pretty sure that if I did, I'd be using 2GB or more per month. The iPad is a device that is so good for streaming video and browsing the web that I bet that iPad users, use way more data that iPhone users. 

As of right now, Apple is saying that's not an option, unless of course you are into Jail-breaking. I suspect that's to protect the sales of the iPad 3G. Here's hoping when they roll out iPhone OS 4.0 to the iPad in fall that they'll change their mind.

2 comments:

  1. Thank you for your info on the iphone 4. Actually lots of my friends in China can not wait to get it!

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  2. The problem AT&T has been having is not so much users using too much bandwidth, but AT&T keeping up with improvements in their network infrastructure to handle the demand. Other carriers, such as Verizon, have spent more money in implementing infrastructure improvements to their network (see article AT&T's iProblem in BusinessWeek Feb. 15, 2010 issue). For example, AT&T's capital spending on its wireless network infrastructure was $17B in 2009 compared to 20.3B in 2008, a reduction of over $3B, despite a rise in revenue from its wireless division from 36% in 2007 to 44% in 2009, according to BusinessWeek. Adding the new iPad to the mix will further impact their network thereby making more customers unhappy, especially since they are required to sign a 2-year contract when purchasing and iPad 3G or iPhone. If you are thinking of canceling that contract. Think again. AT&T has raised their cancellation fee up from $175 to $325, which just became effective on June 1st.

    Yes, there has to be some limitations on bandwidth in order to avoid "bandwidth gridlock" (remember AT&T's moratorium on selling iPhones for a month earlier this year in NYC?). But, AT&T also has to realize that they can't expect customers to endure extended periods of slow network performance if they wish to keep their customers long-ter. Still, having iPhone exclusivity has essentially given a monopoly in the US in terms of access to the iPhone, which is good for AT&T's revenue and bottom line, but not so good for customers who expect better network performance that should come with their 2 year contract and iPhone purchase.

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