If Flat-Rate Mobile Data Plans Are So Bad, Why Do Operators Keep Launching New Ones?
from the playing-both-sides dept
On its quarterly conference call, AT&T’s CFO once again talked up how the company needed to move away from flat-rate mobile data plans because its networks are being overwhelmed by traffic from a small percentage of its users. This rhetoric — which is really just trying to warm up the market for future price increases — comes despite figures showing that AT&T’s data revenues are increasing, while its network investment is decreasing. On some level, if an operator like AT&T wants to try to force through higher prices by increased flat rates or usage-based pricing, go right ahead; we’ll see just how the market reacts. But all of their talk about their poor overwhelmed networks would go down a little bit better if they wouldn’t decry flat-rate plans in situations like this, while they launch cheap flat-rate unlimited plans at the same time, as AT&T has done for the iPad 3G. If AT&T’s network is already taxed and cheap data plans are to blame, why launch another one on a device that’s built to consume data?