Profiting from AT&T’s Retreat
Posted on July 18, 2010
Compelling research from AT&T Labs strongly implies that AT&T Wireless’ adoption of usage-sensitive Internet pricing for iPhones and iPads will seriously curtail per-subscriber growth of data usage. Most competitors are expected to follow suit, even after deploying 4G networks. Consequently the per-subscriber growth for the entire Wireless Internet will slow dramatically unless cellular bypass alternatives or other solutions materialize.
Download audio narration for iPod, iPhone and iPad (four minutes)
Our July, 2010 Mobile Bandwidth Crisis research report identifies alternatives and explains implementation. For example, in an earlier post we discussed how ad-supported WiFi networks could successfully bypass cellular congestion. Furthermore, we noted that iPhone-4 features such as FaceTime video calling– prohibited on AT&T cellular — combined with the expected popularity of media streaming on the iPad will lead owners of such units to seek out WiFi alternatives. Such networks could grow rapidly and earn exceptional profits. Read more…
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ATT Data Pricing Bad for Apple
Posted on June 17, 2010
Phil Leigh
Download Audio Narration Here.
Extensive research into usage-based pricing of communications services conclusively demonstrates two points. First, consumers hate it. Even when metered-pricing would consistently result in a lower bill, they prefer a flat-rate. Second, flat-rates markedly stimulate network usage.
Consider how Rochester, New York telephone subscribers reacted to the following message from the Bell System 124 years ago in 1886.
Unlimited telephone use leads to unnecessary occupation of our wires and to much borrowing of telephones by parties who are not subscribers. This encumbers the system with unnecessary and illegitimate calls resulting in greatly impaired service.
When Bell switched Rochester to metered rates, nearly everybody in the city quit subscribing. Read more…
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