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AT&T Downplays Talk of Tiered Pricing for iPhone Data Plans

AT&T Mobility CEO Ralph de la Vega, who received significant attention for his comments last week suggesting that the company is looking at tiered pricing for data plans to rein in high-use customers, appears to now be downplaying that suggestion, according to a Wall Street Journal report (subscription required).

A senior AT&T Inc. executive dismissed speculation that the telecommunications carrier is planning to change the way it prices data plans for its wireless customers, but said it will give customers incentives to limit their use of its wireless network for surfing the Internet or downloading mobile applications.

"We have not made any decision to implement tiered pricing," AT&T Mobility Chief Executive Ralph de la Vega said Wednesday, referring to plans that would charge based on how much data a customer uses rather than the unlimited plans that are popular today.

While de la Vega's statement certainly doesn't appear to take tiered pricing options off the table for the long-term, as the earlier report suggested such a move would be anyway, it does emphasize AT&T's current strategy of using "incentives" and other strategies for shifting traffic off of its network instead of changing the pricing structure of its wireless plans.

In particular, de la Vega reportedly cited the possibility of increasing free access to Wi-Fi hotspots for AT&T customers, helping to shift traffic off of the cellular network while also providing users with faster connections. He also pointed to AT&T's 3G MicroCell program, which customers can connect to their home networks to seamlessly shift wireless calls to the Internet. The 3G MicroCell is designed to provide greater signal strength indoors and offers users the choice of using their own cellular minutes for calls or purchasing an unlimited calling plan for wireless calls routed through the device.

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28 months ago
IF AND WHEN they do that, I'm G O N E !

I'm not even getting 3.6 for speed! The phone is capable to 7.2!
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28 months ago
I seem to be in the minority, but I have no problem with a fair tiered data plan. We've been using tiered voice plans since the beginning and I don't see why data should be any different. Give the customer an easy way to view how much data they've used, take off any restrictions about what they use that data for (VOIP, text messages, streaming tv, whatever), and allow them to choose a plan that works for them.
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28 months ago
The growing coverage provided by Wi-Fi hotspots will take care of some of the demand for bandwidth, but growth in demand seems likely to outpace it for some time to come.
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28 months ago
I wouldn't mind the Microcell at all, but it needs to be cheaper, if not free.
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28 months ago

I seem to be in the minority, but I have no problem with a fair tiered data plan. We've been using tiered voice plans since the beginning and I don't see why data should be any different. Give the customer an easy way to view how much data they've used, take off any restrictions about what they use that data for (VOIP, text messages, streaming tv, whatever), and allow them to choose a plan that works for them.


I agree, this would pass the cost of the data usage to the ones actually using it. To increase the cost of all data plans let's the data hogs pass their costs on to the us, the average data user.
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28 months ago
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28 months ago
If they reduced or gave us the option to eliminate the data (like they did for the original iPhone) for those of use who don't use much data anyway, I would be more in favor of the tiered model.
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28 months ago
With the 10MB download cap I barely use 5GB per YEAR on my iPhone 3G. Please give me a way to pay something commensurate with the amount of data I actually use. The term "unlimited" needs to be stricken from every piece of wired and wireless ISP literature now and forever.
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28 months ago

The growing coverage provided by Wi-Fi hotspots will take care of some of the demand for bandwidth, but growth in demand seems likely to outpace it for some time to come.


I rarely come across any of their hot spots, and I'm in a pretty high-populated area. I'd rather they spend their time improving the network in order to support that kind of demand, but that's just me.
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28 months ago
If they want to charge extra for using the network more, are they planning to credit customers for having poor or available network? On my way home on the train, half of my trip my iPhone doesn't have service, I propose AT&T should then credit me for the time I spend without the service.
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