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
    Joel (profile), 22 Apr 2010 @ 9:06am

    Re: Re: Because...

    People that go to the little carriers are most likely not looking for advanced phones and now for example MetroPCS is unlocking CDMA phones so the person that wants a nice phone can just buy that phone from Sprint or Verizon and bring it to them. Also I have noticed that a lot of the people who go to the little carriers are not traveling much and are just looking to save money. Most of my friends are split between MetroPCS and T-Mobile.

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