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 @ 7:21am

    Between my wife and I we average over 300mb a month on our two iPhones. We use the unlimited data plan and I have every intention of using that open bandwidth because I am paying for it. Same thing for texting, unlimited and we text our thumbs off... she's better at it but we average over 1500 texts a month. Again, paying for it.... going to use as much as I can. On the other hand we use maybe 100min a month of our 1400min outside of our calling circle and in network calls. I'm slowly lowering the amount of minuets we have on our plan....not going to use it...not going to pay for it.

    This is why I DON'T have a gym membership, I'd almost never use it, not to mention parking farther away in the parking lot, taking the stairs, and living on the third floor... why should I go to the gym. Excercise is free, I even got paid to do it when I was in the Army. Besides I have an equivelent gym at work and apartment... both are free!

    If I'm going to pay for something, I'm going to use it to it's fullest extent, otherwise I'm not buying it. Then it's up to the seller to make it more marketable/reasonable to attract my purchase.

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