AT&T announces price cuts for most data customers

by on June 2, 2010 · 4 comments

Pundits are foaming at the mouth about AT&T’s just-announced end to unlimited data packages for smartphones. Here is Jeff Jarvis calling the move “cynical,” “retrograde,” and “evil.” However, he provides no evidence that this is anything but AT&T facing economic reality. The iPhone was a revolution, and how much data people consume given an awesome device turned out to be much more than AT&T was ready for. Now they’re asking their customers who use the most data to pay more, and this is evil?

Not only is it not evil, it’s incredibly fair. Most people will probably pay less for service. The cheapest of AT&T’s new plans is $15 for 200 MB of data. That’s $15 cheaper than their current $30 for unlimited iPhone use. According to AT&T, 65 percent of their customers use less than 200 MB of data a month. I consider myself a heavy iPhone user, and I just came back from a trip to NYC on which my iPhone was the only device I took with me, and yet with 2 days left in my billing cycle, I’ve used 154 MB of data. So, AT&T’s change will actually be a price-cut for me and the majority of AT&T customers.

Yup, real evil.

  • Bebb

    wireless broadband data demand is growing so ATT and VZ pay big money for spectrum but do not invest in infrastructure and FORCE consumers in a quasi duopoly (80% market share and growing) to LIMIT their use…what about all these great apps in the near future? what about price performance of other countries! this is evil!

  • Ryan Radia

    I'm not an AT&T subscriber, but I'm curious about how these new pricing tiers work. Let's say I transfer 150MB in most months (and have the DataPlus plan), but one or two months a year I transfer 1.5GB (say, when I'm on the road). What's my best option? Can I switch to the DataPro plan in advance for just one month if I know I'm going to be using lot of data? And if I'm on the DataPlus plan, can I buy larger usage increments as needed? AT&T's site says I can get an extra 200MB for $15; can I buy multiple 200MB increments in a single month? Or can I get a larger GB supplement for $25 even if I'm on DataPlus?

  • Bebb

    wireless broadband data demand is growing so ATT and VZ pay big money for spectrum but do not invest in infrastructure and FORCE consumers in a quasi duopoly (80% market share and growing) to LIMIT their use…what about all these great apps in the near future? what about price performance of other countries! this is evil!

  • Ryan Radia

    I'm not an AT&T subscriber, but I'm curious about how these new pricing tiers work. Let's say I transfer 150MB in most months (and have the DataPlus plan), but one or two months a year I transfer 1.5GB (say, when I'm on the road). What's my best option? Can I switch to the DataPro plan in advance for just one month if I know I'm going to be using lot of data? And if I'm on the DataPlus plan, can I buy larger usage increments as needed? AT&T's site says I can get an extra 200MB for $15; can I buy multiple 200MB increments in a single month? Or can I get a larger GB supplement for $25 even if I'm on DataPlus?

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