[akeefer]

But if the heavy users of their services are costing them more than they're making, and generally degrading the quality of the service, that argument doesn't really hold up. I'm going to assume that, like most similar business models (including gym memberships and all-you-can eat buffets), AT&T relies on light data users paying for more than they use in order to subsidize heavier data users that use more than they pay for. Encouraging people to become heavy users that are an overall cost to the business so that they stick around longer would seem like the classic "we lose money on each one, but we make it up in volume" sort of mistake.

It would be like encouraging people to eat more when they go to an all-you-can-eat buffet by giving them doggy bags to take home as much as they want, on the theory that then they're more likely to come back. If you're losing money on those people you don't really want them to come back.

It's obviously an open question as to exactly what their costs per user are for light versus heavy users of data, but I'm going to infer from their recent actions that they've decided that at the moment supporting heavy users of data isn't such a great business to be in.