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Should AT&T Abandon Unlimited Data for the iPhone?

Rédigé par Dieter Bohn le Lundi 11 Mai 2009



The Wall Street Journal has an article up today saying the iPhone uses more data than your average smartphone and suggesting: In the short term, carriers should abandon unlimited data pricing plans. Both AT&T and Verizon Wireless already charge extra for heavy users with wirelessly connected laptops. They will have to contemplate similar strategies [...]

The Wall Street Journal has an article up today saying the iPhone uses more data than your average smartphone and suggesting:

In the short term, carriers should abandon unlimited data pricing plans. Both AT&T and Verizon Wireless already charge extra for heavy users with wirelessly connected laptops. They will have to contemplate similar strategies for smartphone users.

Short gloss — yes, the iPhone will strain AT&T’s network and the profit on the iPhone plan is probably a bit less on a per-user basis than it is on, say, a WinMo phone. However, ARPU is “average revenue per user”, and the iPhone makes AT&T’s ARPU look high and that’s still what people pay attention to. (And even with reduced profit, AT&T still makes WAY more ARPU and profit per-user with the iPhone than they do off a feature phone.)

As for abandoning unlimited data: like the cable companies, every provider wants to but nobody has figured out a way to do it that doesn’t make end users livid. So, we doubt that AT&T will pull that particular trigger.

Finally, network upgrades aren’t just about giving users speed and better experiences with fewer dropped calls and the like — they’re also about the network lowering their per user cost, and that’s certainly in AT&T’s best interests as well.

So you’re right, WSJ, that the iPhone cuts into some of AT&T’s profit levels, but not so much that it’s going to be a problem. There’s a reason they’re so desperate to re-up their contract with Apple.

[Via Gizmodo]

This is a story by the iPhone Blog. This feed is sponsored by The iPhone Blog Store.

Should AT&T Abandon Unlimited Data for the iPhone?




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Tags : apple, iphone


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