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by navyrain 5856 days ago
The author really hasn't considered it from AT&T's perspective. On one end, they're hearing complaints about their terrible network, and on the other end, they're facing large costs to improve their infrastructure to support people with unlimited accounts. Aside from the comparatively small increase in subscriptions they'll get for their improvements, they'll see no income for their investment.

However, if AT&T were to force out the unlimited data pricing model and replace it with per GB pricing, they'll be able to fund the scaling their infrastructure up as the usage increases. Similar preferences for per-GB models have been voiced by other telcos as well, claiming "unlimited data is dead" (I don't know where I read this). Frankly, I'd be surprised if there wasn't some collusion amongst the big telcos regarding this.

I'm not saying I'm happy about this, but I think the scenario I describe is much closer to reality.

4 comments

My only thought is that the other 'big telcos' got billions of dollars from the US government to upgrade their infrastructure. Whatever became of that?

This is why I have little sympathy for them when they bitch and moan about how people are using 'too much bandwidth.' Also note that they never come right out and say things like, "We oversell our bandwidth," or, "Our infrastructure can't handle what our customers are using." It's always framed in terms of the 'big bad' users that are hurting the poor ISP's stalwart network.

Granted, I'm not sure that AT&T falls into this net. They probably didn't get government money to build out their 3G network.

I'd really appreciate it if AT&T would just come out and say this, but they're not. Unfortunately I fear they'll put this pricing into effect and still offer the same shitty service.
I'd email ATT's CEO to suggest this, but I'd be afraid of getting a cease and desist warning in response. ;)
They might not be facing such large infrastructure cost if they had continuously upgraded their network. I remember reading last summer, that the last 8 quarters (basically since they got the iPhone) AT&T network investment had gone down.
On one end, they're hearing complaints about their terrible network, and on the other end, they're facing large costs to improve their infrastructure to support people with unlimited accounts

Of course, there's never any shortage of money in the kitty at AT&T to buy advertising to tell the world how great their network is.