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AT&T Again Moves to Downplay Reports of Imminent Tiered Data Pricing for iPhone

In a lengthy BusinessWeek article, AT&T Mobility CEO Ralph de la Vega again attempts to clarify the company's plans for dealing with high-usage iPhone data customers by emphasizing incentives for shifting traffic off of its network rather than implementing tiered pricing as had been suggested earlier this month. The comments mark the second time a major media outlet has gone public with de la Vega's efforts to clarify his earlier comments.

Industry analysts have been figuring that AT&T would inevitably move from its $30-a-month, unlimited data plan for iPhone users to a "tiered pricing" model that charges according to usage. De la Vega says that no such move is imminent. "There are things people say I said that I didn't say. We have not made any decision to implement tiered pricing," he says -- repeating the last part for emphasis.

De la Vega's comments to BusinessWeek were made in a December 16th interview, which appears to coincide with the interview cited in the earlier Wall Street Journal report, although the latest report provides additional perspective on the misinterpretation of de la Vega's original comments that sparked the controversy.

Within hours the Web was filled with articles that said Ma Bell was about to raise prices or slap consumers with restrictive monthly usage limits. "There were no follow-up questions, so I figured everyone understood what I was saying," de la Vegas said in a Dec. 16 interview. "I guess I should have been more clear."

As noted in the earlier report, AT&T is looking to such solutions as free Wi-Fi hotspots and 3G MicroCell network extenders to shift data traffic to the Internet. The strategy sees Wi-Fi as a "lifeline" for overloaded cellular networks, whereas it had previously been seen as a threat to cellular companies.

It's a lifeline that AT&T plans to use heavily. On Dec. 15, AT&T announced a deal with McDonalds (MCD) by which the fast-food giant will waive for two hours a $2.95 Wi-Fi charge for customers at 11,000 restaurants. "Now customers can go to McDonalds and stay online as long as they want," says de la Vega. The agreement follows earlier deals with such retailers as Starbucks (SBUX) and Barnes & Noble (BKS).

AT&T has taken heat for apparent cuts in infrastructure spending, even as the iPhone has continued to drive increasing demand. Network performance monitoring companies, as well as more informal testing, have shown, however, increased performance for AT&T's 3G network, putting it on par with or better than its competitors.

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28 months ago
This is not necessarily a bad thing if done right. At least you get a figurehead "unlimited" in the US, in Canada that $30/month currently gets you 500 megs or 1 gig depending on the provider. There are some people who got 6 gigs for $30 in a promotional offer, but that was a limited time offer.

Rogers repeatedly claims that the average iPhone user consumes about 400 megs in a month. I have no idea if those figures are realistic, or match the American iPhone experience as opposed to the Canadian one.

I'd be OK with, say, 2 gigs for $20. In fact I think that would be pretty fantastic.
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28 months ago
What this all means is that AT&T is getting ready for Imminent Tiered Data Pricing for iPhone! :cool:
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28 months ago
Will current plans be grandfathered for unlimited data?

...even though it isn't really unlimited :confused:
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28 months ago
GIVE AWAY the 3G microcells. Give them to businesses, governments, community organizations, and any home customer that's willing to allow general traffic.

Boom. Problem solved.
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28 months ago
This still makes it sounds like the network sucks, and little responsibility is being taken for it on their account. You know AT&T, history is littered with companies that failed to allocate a reasonable capital investment budget and eventually were deserted by their customers.

This week alone a certain car company found it has no value at all. Why? Because they put virtually no money into new models and let their customers down. Eventually customers stopped hoping for good things and walked away.
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28 months ago
Why would I want to connect to a wifi hotspot when I'm paying for unlimited data? obviously would be to just download a music from itunes that I couldnt wait to get home to do it.

Does that mean that they would treat blackberry the same? If they go forward with this thats when I leave AT&T, when will we realize that enough is enough?

iPhone users use alot of internet, AT&T sees that and wants to capitalize on it.

At what cost is it still worth to have an iPhone?
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28 months ago
How about just fixing the network?

There, problem solved...
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28 months ago

"There were no follow-up questions, so I figured everyone understood what I was saying," de la Vegas said in a Dec. 16 interview. "I guess I should have been more clear."


So, is he being any clearer here?


"There are things people say I said that I didn't say. We have not made any decision to implement tiered pricing," he says -- repeating the last part for emphasis.


No. Corporate double-speak as usual.

What this all means is that AT&T is getting ready for Imminent Tiered Data Pricing for iPhone! :cool:


Looks like it.
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28 months ago

Why would I want to connect to a wifi hotspot when I'm paying for unlimited data? obviously would be to just download a music from itunes that I couldnt wait to get home to do it.


performance, for one...
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28 months ago
Try the data rates in Australia. Telstra, Optus and Vodafone charge insane data rates even for lite users. Whatever AT&T do, the US will still probably have some of the best deals. Competition in the market isn't does't always lead to better deals.
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