AT&T CEO Believes 5G Phone Plans Could Be Tiered and Priced on Data Speed

The next couple of years will see the rollout of 5G cellular phone networks from companies like Verizon, AT&T, Sprint, and T-Mobile, and it sounds like 5G smartphone plans might not be priced in the same way as current 4G LTE plans.

During today's AT&T earnings call, AT&T CEO Randall Stephenson said (via The Verge) that he believes the pricing for 5G connectivity could resemble home broadband pricing with different prices for different speed tiers rather than one set price for the fastest connectivity available.

"I will be very surprised if, as we move into wireless, the pricing regime in wireless doesn't look something like the pricing regime you see in fixed line. If you can offer a gig speed, there are some customers that are willing to pay a premium for 500 meg to a gig speed, and so forth. So I expect that to be the case. We're two to three years away from seeing that play out."
5G networks are still in the early days, so how pricing will ultimately work out remains to be seen. It's also not clear how variable pricing for tiered speeds would work given the fact that 5G connections speeds are going to vary depending on whether you're in a city or in a more rural area.

The fastest 5G speeds, available through mmWave technology, will be limited to urban areas. Verizon CEO Hans Vestberg this week explained that millimeter wave high-frequency spectrum isn't suitable for widespread coverage, a sentiment shared by T-Mobile CTO Neville Ray, who wrote a blog post on the subject earlier this week.
Some of this is physics - millimeter wave (mmWave) spectrum has great potential in terms of speed and capacity, but it doesn't travel far from the cell site and doesn't penetrate materials at all. It will never materially scale beyond small pockets of 5G hotspots in dense urban environments.
AT&T has launched its 5G network in a handful of markets across the United States, and other carriers, like Verizon, have also been starting their 5G network rollouts.

There are few smartphones that are able to take advantage of 5G networks at the current time, but additional 5G smartphones are expected later in 2019.

Rumors suggest Apple's first 5G iPhone will come out in 2020, when 5G networks are more mature and more widely available. Apple is planning to use chips from Qualcomm and perhaps Samsung now that Intel is out of the 5G smartphone modem chip business.

Top Rated Comments

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10 months ago
I believe that I will be angry in the future.
Rating: 85 Votes
10 months ago
What a nightmare.
Rating: 59 Votes
10 months ago
It’s sucks when What should be considered a utility is being treated with “some people will be willing to pay more for the full experience”.

This quote from att shows exactly why this idea that private companies will provide the best experience to the largest number of users for something which is effectively necessary to function in society is incredibly misguided.
Rating: 54 Votes
10 months ago
5G is a solution in search of a problem...
Rating: 47 Votes
10 months ago
He believes it will be or hopes they can force users to pay for speeds to simply make more money. I believe people will most likely leave AT&T if this is the case.
Rating: 45 Votes
10 months ago

Can't wait for 6G when they start tiering by location, type of smartphone, etc, etc...:rolleyes:

You know, I think it could get far more arbitrary…

Rating: 27 Votes
10 months ago
Can't wait for 6G when they start tiering by location, type of smartphone, etc, etc...:rolleyes:
Rating: 24 Votes
10 months ago
Tiers bring tears.
Rating: 19 Votes
10 months ago
I really do not like Randall and I'm a big believer that he needs to go. He really has not done good for AT&T as a company or a stock.

They have bought so much stuff they don't need and they make stupid statements like this. They keep raising their prices on everything to pay for the stupid stuff they bought.
Rating: 17 Votes
10 months ago
I can't believe the 5G craze. 4G is already so fast, how much data do people need on the go? Half the time it's just people screwing around on social media in public. 4G is faster than most Wi-Fi 10 years ago, I don't know why it's not enough.

And let the chip makers take their time. If something like this is rushed it will suck and be available almost nowhere.
Rating: 17 Votes

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