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?

Filed Under: data plans, flat rate
Companies: at&t


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  1. icon
    P3T3R5ON (profile), 22 Apr 2010 @ 8:37am

    Re: Because...

    True, but how long can the little carriers last, standing arpart when the big guys can come in and buy them or push into their core network area and provide proprietary service items like iPhone or Droid where as your little guy just has the typical Samsung or Motorla phone. When you're not guarenteed 3G coverage or you are paying higher prices because when you travel your not roaming but running on leased lines from the big carriers.

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