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Unlimited Data Plans Going Away?

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Jon Adams
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re: Unlimited Data Plans Going Away?
Jon Adams   5/12/2009 3:49:43 PM
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First, the increased costs that AT&T may be experiencing are likely minor, and strictly incremental costs. The network is currently overbuilt, so there's bandwidth that lays idle. Using that bandwidth incurs no extra cost. The only spot where more bits can impact the bottom line is at the peering connections between networks, but with AT&T's network size I imagine that they have some pretty cost-effective peering agreements in place, thus the incremental costs are likely near zero. The term "unlimited" is a misnomer - there is generally a cap on total bits per month but in some cases the service shuts down, or there is an obscenely high overage charge. I can't see how, in the US at least, that any major carrier can close the "unlimited" Pandora's box now that it's been opened. The major US cable carriers have each tried to cap or otherwise abandon their own "unlimited" plans and those marketing efforts have mostly been shelved. Times can change, but this generation expects more and more that their phone is a seamless extension of their home unlimited connectivity. As the referenced article indicates, the carriers are indeed between a rock and a hard place. And yes, I do surf on my phone whenever and wherever I need information.

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