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AT&T CFO Sees Tiered Pricing Future for Carriers

Article Comments  48  

Apr 21, 2010, 2:23 PM   by Philip Berne

As part of the company's second quarter earnings call, AT&T Chief Financial Officer Rick Lindner hinted that the future for carriers selling data plans will be a tiered model based on usage, instead of today's pseudo-unlimited model. Lindner explains that the growing disparity between high volume smartphone users and lower traffic users justifies tiered model, but claimed that tiered plans would be fair and equitable, according to Connected Planet. Lindner cited challenges facing the data carriers, including the growth of embedded devices, like the Apple iPad and other consumer devices, as well as limitations in the network technology and available spectrum. The CFO offered no specific plans or details, but clearly the issue will need to be resolved before AT&T deploys its upcoming 4G network.

AT&T Investor Relations »

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netboy

Apr 22, 2010, 9:47 AM

if i paying 30$ for unlimited data

i going to use data on the phone as much as possible to get my money worth!
and that attitude is why tiered pricing is coming.

The "unlimited" is so you don't get nasty overages with NORMAL usage (or even heavy usage) the people who try to blow as much data as possible, or the people that use it for things against the T&C ...
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imprezaowner27

Apr 21, 2010, 4:54 PM

so what happens when....

someone who's a light user has a internet happy month and reaches that "tier"

overages?
oh yeah, another chance to screw over customers, thanks ATT
imprezaowner27 said:
someone who's a light user has a internet happy month and reaches that "tier"

overages?
oh yeah, another chance to screw over customers, thanks ATT


Haven't consumers dealt with this with min...
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...
Pretty sure sprint tried it awhile ago.. basically configure your account to jump to the next pricing tier if your overages would be equal to or greater than the price difference.

Have devices receive an email/text when they reach:
50% of limit
...
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Its funny that you think that AT&T will be the only one billing like this. It has been echoed across US and international mobile carriers as the probable future.
Slammer

Apr 21, 2010, 3:55 PM

WiMax is looking better everyday..

While Sprint has left the door open for LTE, the offset in choosing WiMax will be far better in having true unlimited. It has already been stressed that WiMax will remain unlimited. This is the true beauty of operating on a higher frequency. It handles data transfer far better than lower.
That may be true but you'll need more capital to build more towers to cover the same area.
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😳
Can you explain how higher frequencies handle data transfer better than lower ? These are 'RF' frequencies that we're talking about here, not audio.
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WarriorProphet

Apr 21, 2010, 5:38 PM

Actually 4G makes this argument an even bigger lie

Considering LTE offers as many as 10x the data sessions per 10mhz of bandwidth versus hsdpa this argument is actually moot. As we move towards true IP based WWAN networks, IPv6 not withstanding, these arguments hold less and less water.

It would be more accurate to say that the corporate CFO is betting we'll pay more just because he says so. Unfortunately americans have thus far told the big 4 wireless providers in the US that it is OK to do so. Contracts with high (even teired) ETF fees are OK, we want our $800 phones for free, and we'll then pay anything to keep them on the air.

Such a dumb model, I wish we'd become more like Europe, where most pay full price for their phones, and there are enough competitors that true unlimited offe...
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Amen. I now buy my phones unlocked anyway and have since been with CinBell (best rates so far). I'm glad to see Sprint is going with $70 unlimited plans. I have a feeling that Evo is gonna sell like hotcakes with that plan.
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WarriorProphet said:
Considering LTE offers as many as 10x the data sessions per 10mhz of bandwidth versus hsdpa this argument is actually moot. As we move towards true IP based WWAN networks, IPv6 not withstanding, these arguments
...
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Most European plans do NOT include calling landlines, ever, in their minutes. Even if you have an unlimited plan, you have to pay per call to landline.

The concept of unlimited mobile to mobile on network, or free nights and weekends is also a fan...
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island-guy

Apr 21, 2010, 9:23 PM

Classic bait and switch

Corporate greed in its purest form....with all of the technological advances in the electronics industry are we seriously supposed to believe that it's not possible to build a cellular network that can handle the population demands in certain demographics? Why invest in and improve a system that can't succeed? I am just waiting to see what happens when 3G Ipads are released next month. I can just imagine the excuses and scenarios now.
do you have any IDEA the potential data a user can consume with even current Gen 3g technology?
...
Vipermad

Apr 22, 2010, 6:00 AM

He sees tiered pricing....

Because he sees all of his customers bailing on ATT's poor excuse for a network...so they have to make up the $$$ somewhere!!

I'll pay for your tiered data once you start reimbursing me for all the dropped calls, failed calls...etc.

ATT sucks and the days when the gravity of the iPhone is enough to keep me so close to ATT are coming to an end....and I HIGHLY doubt I am the only one.

I will sit with my beer and watch ATT imnplode, fold and blow away with the wind.
justfinethanku

Apr 21, 2010, 2:33 PM

Going to hold onto my unlimited plan for dear life.

My contract say's I can upgrade every 24 months and extend the contract without making any changes. I'll simply refuse to switch away from my unlimited rate plan.

Unfortunatly they will probably come up with some way to yank the choice out of my hands.
All carriers can make mandatory changes to their pricing plans.

Their only handicap is they have to let you out of your contract with no fees- a small price to pay for dumping a customer who uses $200 in bandwidth every month and only pays $29.99 f...
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Looks like I'm keeping my iPhone 3G for life then.
The teired data will probably have a capped amount and not be all that bad otherwise, no one would have a PDA.
...
as long as the device you want doesn't require a certain plan (like all 4g devices will)
They could just make any newer smartphone require a 'current' data package. That's how Sprint got a lot of customers from no-expiration retention-only free data packages that they weren't supposed to have.

🙂
stanbearpig

Apr 21, 2010, 5:09 PM

as for the building up the system

shouldnt they have enough money from all the text money they get or that doesnt count because thats towards profit moneys 😁
 
 
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