Wireless Industry May Have To Introduce Tiered Pricing – Cites Data Strain On Network
After years of offering unlimited access plans to their networks, some wireless carriers are reeling from the popularity of mobile devices. In what can only be described as a ‘data rush’, some users may be over welcoming their stay, and causing network slowdowns. When I first read about this problem it reminded me of what Comcast was doing by throttling some users Internet access, because the company felt some users were hogging bandwidth. But is this the real issue or just a smoke screen to raise pricing?
The deal between Apple and AT&T is a great example on how two companies joined forces to offer a closed network to consumers. I am sure that Apple could not of known just how popular their iPhone would be. They also may not of known how many applications would be developed to use with the iPhone, last count I heard was over 100,000 and counting. So in their deal with AT&T, they had a lucrative deal in which consumers would be locked into a two year contract with AT&T and both companies would rake in the dough. But wait. Didn’t AT&T know that people were going to suck bandwidth with all of the apps Apple would be offering?
In a recent article it also states:
Ralph de la Vega, chief executive of AT&T Mobility and Consumer Markets, caused a stir at an investment bank conference last week when he said the company is seeking ways to curb high usage by data hogs — namely, iPhone users. The executive said 3 percent of iPhone users account for 40 percent of traffic.
“If 3 are costing 40 percent, then we’re going to focus on making sure we give incentives to those small percentages to either reduce or modify their usage, so they don’t crowd out the other customers in the same cell sites,” de la Vega said. For the longer term, he said AT&T might consider “some sort of pricing scheme that addresses the usage.”
De la Vega said any new pricing would comply with Federal Communications Commission regulations on Net neutrality, or ensuring that applications and content are treated equally. Internet service providers have faced government scrutiny and consumer ire in previous attempts to limit heavy data usage.
My question would be how accurate are these figures? How can any of us trust anyone in corporate America after the banking mess, wall street fiasco and auto industry ineptness that has cost us taxpayers millions. At a time when we consumers are disgusted with big business one would think they would keep their big mouths shut and ramp up their networks to meet demands.
My feeling is that these people are full of crap and just want to bilk more money from us. What about you? What is your opinion?
Comments welcome.




