Content Providers and App Developers to Subsidize LTE/3G Bandwidth Costs?

overview bucket 4g
A story that is getting some traction this morning is a Wall Street Journal article about how quickly new iPad users are consuming their monthly bandwidth allotments over LTE. We covered this story on our iOS Blog. While the conclusion may seem an obvious, carriers are beginning to consider other ways to help shift the bandwidth cost away from the consumer.

In particular, the Wall Street Journal notes that AT&T is considering a plan to do just that by allowing the content providers to pay for usage of their apps:

AT&T, for example, is studying a plan to give app developers and content providers the option to pay for the mobile data their products use, thereby keeping those apps and videos from counting against a user's allotment of data, kind of like an 800-number for apps.

If implemented, this would presumably allow bandwidth usage for certain apps to be free. For example, watching shows from a TV network app such as ABC Player might not count against your monthly bandwidth allotment. Instead, ABC would pay AT&T (or Verizon) for the mobile bandwidth consumed. In return, ABC would likely see increased usage of their app to watch shows and more revenue from in-show advertising.

Mobile carriers in the U.S. have been moving away from unlimited bandwidth plans over the past few years. Instead bandwidth is sold in specific allotments (2GB, 3GB) per month with additional fees for overages.

Top Rated Comments

buckyballs Avatar
124 months ago
This is a terrible idea. One of the best things about the App Store for developers is that it allows small companies to compete against the big boys. Doing this allows the big companies (that can afford to) pay the bandwidth costs, while smaller companies that might not be able to afford this will lose out, as the customer will always go to the app that doesn't count against their usage allowance
Score: 34 Votes (Like | Disagree)
miles01110 Avatar
124 months ago
Interesting idea, although that just means these apps will just turn into Hulu (ads every 3 minutes) or you'll have to pay a subscription fee, which is basically the same thing as paying for the data plan.
Score: 29 Votes (Like | Disagree)
Porco Avatar
124 months ago
I'm sure it is great to have LTE speeds... but when you've got 3GB data caps I don't really see the point for the majority of users.

I don't really like this idea either though, the answer is for the carriers to stop being so ridiculous and invest some of their huge profits in more infrastructure, not undermining whatever is left of Net Neutrality.
Score: 18 Votes (Like | Disagree)
JangoFett124 Avatar
124 months ago
This is just a variation of getting around net neutrality, and puts the smaller shops at a huge disadvantage against the big guys. Don't think that this will stop at being an optional service for developers. And don't think the costs won't be passed back on to the user, anyway.
Score: 16 Votes (Like | Disagree)
TheBronx Avatar
124 months ago
Horrible idea.
Score: 13 Votes (Like | Disagree)
AppleDroid Avatar
124 months ago
It's just going to make those content providers raise their prices elsewhere (online content, cable costs etc) so the consumer will end up paying for it somehow.
Score: 9 Votes (Like | Disagree)

Top Stories

beats updater

Apple Officially Retires Beats Updater Utility in Favor of Over-the-Air Firmware Updates

Wednesday September 30, 2020 2:30 am PDT by
Apple has officially retired Beats Updater, the software utility that lets users update the firmware of their Beats Wireless headphones, earphones, and speakers. Beats Updater allows users to plug their Beats product directly into the USB port of their computer to check for firmware updates online, but with Apple's growing tendency to deliver over-the-air updates to wireless products via iOS ...
calculatorapp

iOS 11 Bug: Typing 1+2+3 Quickly in the Calculator App Won't Get You 6

Tuesday October 24, 2017 2:03 pm PDT by
A bug in the built-in Calculator app in iOS 11 is getting some major attention this week, despite the fact that it's been around since iOS 11 was in beta testing. At issue is a calculator animation that causes some symbols to be ignored when calculations are entered in rapid succession. You can try it for yourself: Type 1+2+3 and then the equals sign into the Calculator app quickly. Due to...
iPhone 13 Dummy Thumbnail 2

Kuo: iPhone 13 to Feature LEO Satellite Communications to Make Calls and Texts Without Cellular Coverage

Sunday August 29, 2021 7:39 am PDT by
The iPhone 13 will feature low earth orbit (LEO) satellite communication connectivity to allow users to make calls and send messages in areas without 4G or 5G coverage, according to the reliable analyst Ming-Chi Kuo. In a note to investors, seen by MacRumors, Kuo explained that the iPhone 13 lineup will feature hardware that is able to connect to LEO satellites. If enabled with the relevant...
studio buds family

Beats Studio Buds Debuting Today With Active Noise Cancellation, Stemless Design, and More for $150

Monday June 14, 2021 8:00 am PDT by
We've seen a lot of teasers about the Beats Studio Buds over the past month since they first showed up in Apple's beta software updates, and today they're finally official. The Beats Studio Buds are available to order today in red, white, and black ahead of a June 24 ship date, and they're priced at $149.99. The Studio Buds are the first Beats-branded earbuds to truly compete with AirPods...
original iphone

Phil Schiller Says iPhone Was 'Earth-Shattering' Ten Years Ago and Remains 'Unmatched' Today

Monday January 9, 2017 7:15 am PST by
To commemorate the tenth anniversary of the iPhone, Apple marketing chief Phil Schiller sat down with tech journalist Steven Levy for a wide-ranging interview about the smartphone's past, present, and future. The report first reflects upon the iPhone's lack of support for third-party apps in its first year. The argument inside Apple was split between whether the iPhone should be a closed...
m1 imac orange

New iMac Tidbits: Headphone Jack on Side, Ethernet Port on Power Adapter, Spatial Audio and WiFi 6 Support, No SD Card Slot

Wednesday April 21, 2021 6:38 am PDT by
Apple yesterday announced a completely redesigned 24-inch iMac with the M1 Apple silicon chip. The new iMac, the first major redesign of the Mac desktop computer since 2012, has several changes compared to the previous generation. In the aftermath of the event, a few new features and tidbits may have slipped under the radar, so we’ve compiled this list of some of the less-talked-about...
General Apps Messages

Android iMessage Competitor Puts Pressure on Apple

Friday July 30, 2021 3:15 am PDT by
Google and the three major U.S. carriers, including Verizon, AT&T, and T-Mobile, will all support a new communications protocol on Android smartphones starting in 2022, a move that puts pressure on Apple to adopt a new cross-platform messaging standard and may present a challenge to iMessage. Verizon recently announced that it is planning to adopt Messages by Google as its default messaging...
affinity designer contour tool

Serif Updates Affinity Photo, Designer, and Publisher With New Tools and Functions

Thursday February 4, 2021 1:58 am PST by
Serif today announced across-the-board updates for its popular suite of Affinity creative apps, including Affinity Photo, Affinity Designer, and the Apple award-winning Affinity Publisher for Mac, all of which were among the first professional creative suites to be optimized for Apple's new M1 chip. "After another year which saw record numbers of people switching to Affinity, it's exciting to...
iPhone 13 Dummy Thumbnail 2

Full iPhone 13 Feature Breakdown: Everything Rumors Say We Can Expect

Tuesday August 31, 2021 7:50 am PDT by
With the launch of Apple's iPhone 13 lineup believed to be just a few weeks away, we have compiled all of the coherent rumors from our coverage over the past year to build a full picture of the features and upgrades coming to the company's new smartphones. For clarity, only explicit improvements, upgrades, and new features compared to the iPhone 12 lineup are listed. It is worth noting that...
qualcomm snapdragon x60 5g

iPhone 13 Lineup Expected to Use Qualcomm's Snapdragon X60 Modem With Several 5G Improvements

Wednesday February 24, 2021 8:10 am PST by
Apple's next-generation iPhone 13 lineup will use Qualcomm's Snapdragon X60 5G modem, with Samsung to handle manufacturing of the chip, according to DigiTimes. Built on a 5nm process, the X60 packs higher power efficiency into a smaller footprint compared to the 7nm-based Snapdragon X55 modem used in iPhone 12 models, which could contribute to longer battery life. With the X60 modem, iPhone...