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. identicon
    Mystic Kitsune, 22 Apr 2010 @ 6:42am

    AT&T can blame 3g open PPTPP

    AT&T and Boost mobile share one thing in common: both can be used as wireless tunneling servers without any authentication, the majority of DATA is going through encrypted pipelines owned by both businesses and public. and the tunnelers are mostly gamers or hackers, causing data usage to skyrocket. 4G will/is seeing the exact same dilemma... Verizon is the only one to really tighten security on their airwaves. partially through proprietorial means, but mainly with proper security planning.. I'm not endorsing Verizon, or agree with their practices. bit I just thought that this hitch needed too be poked at.

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