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AT&T structures new data plans, disposes unlimited plan
By siliconindia
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Thursday, 03 June 2010, 18:18 IST
Bangalore: AT&T would scrap the unlimited data plan to new iPhones and other smartphone users as a trifle segment of users made heavy use of the network slowing service down for other users. Analysts said AT&T's move could have ripple effects on other wireless carriers and, eventually, a growing segment of the population that has begun gorging on data using their phones, reports Matt Richtel from New York Times.
AT&T has outlined two plans. One is the DataPlus which caps at 200MB per month, costs $15 per month, and if you go over your 200MB limit you'll be given another 200MB and charged another $15. The other one is the DataPro which caps at 2GB per month, costs $25 per month, and if you go over your 2GB limit you'll be given another 1GB and charged another $10.
Users desiring to hold onto their existing services can do so and if they want an iPhone or other AT&T-provided smartphone with an unlimited data plan, then they have to sign up before June 7, when both AT&T will switch to its capped data service plans and Steve Jobs is expected to unveil the next-generation iPhone.
"The free lunch for the ultra-heavy data user has been taken off the menu," said Roger Entner, a telecommunications industry analyst with the Nielsen Company. "The new generation of heavy users is going to pay according to what they use," added Entner.
According to a research group comScore, 57.1 million mobile subscribers in the United States had unlimited data plans, a 57 percent increase from April last year and it has undoubtedly benefitted the wireless carriers.
According to CTIA,a revenue of $41.5 billion was generated from data use last year, compared with $8.5 billion in 2005. The new policy affects iPad Wi-Fi and 3G owners as well. If users already have the Cupertinian tablet, they can choose to keep their current $29.99 unlimited plan or switch to the DataPro plan. If a 3G iPad is bought on or after June 7, DataPro is the only way to go.
"The biggest data pigs in the world are the iPhone guys," said Edward Snyder, an analyst with Charter Equity Research. Snyder and other analysts said the iPhone, which is now available exclusively from AT&T in the United States and has helped it attract millions of consumers, is likely to be offered by other carriers as soon as next year. When that happens, Snyder said, AT&T could face an exodus of customers who have been unhappy with the performance of its network, and it might be hoping that the new data plans would attract lighter users.
"It's a stupefying amount of data," said Mark Siegel, a spokesman for AT&T. He added 65 percent of the company's smartphone customers tend to use less than 200 megabytes a month, and 98 percent averaged less than 2 gigabytes. These changes would mean lower prices even for people who might think they could easily burn through 2 gigabytes.
It's not only AT&T wchich has decided to move on with its plans.On a similar track, T-Mobile in April said customers on its 5-gigabyte data plan would have their access speed slowed when they went over their allotment, instead of paying more.
Verizon Wireless, which declined to comment on its future pricing plans, offers an unlimited plan for $30 a month. Ken Dulaney, an analyst with Gartner, said he expected Verizon to try to capitalize on AT&T's move, at least at first.
