The iPhone is a mixed blessing for AT&T (T). Well it has been great for ramping up the subscriber base the performance of their network has steeply declined. What does it take for the iPhone to no longer be a gift but a curse?
In a research report out from Bernstein it is estimated the average iPhone user consumes 5x-7x as much monthly bandwidth as an average subsriber, and more than double the typical 3G smartphone user. With heavier users consuming 1-5 GB a month. The report goes on to predict that this will trigger usuage-based pricing in the future as competitors could take advantage of this with lower-priced alternatives for those who don't need as many frills.
My thought is that they need to do something about the network, even if that means higher prices. Users getting 1-5 GB of bandwidth a month will pay, they prob. have the $ from all that time they are spending using the internets. Or who knows maybe they are just 'surfing' and 'taking names in web-based java app games' on their commute. Regardless, this user will pay. If not they are not worth it, the calls dropping, the dip in robustness needs to get fixed sooner rather than later. iPhone exculsivity is up next year and people who were quick to change in first place, might be quick to change back
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6 comments:
If AT&T raises their rates I will purchase a handheld device that receives WiMax or Clear 4G and wait for a Vonage app that does VOIP. Cellphone carriers better step up their game. The game has been changed.
disagree. thoughts and predictions are too premature.
kinda like the time when Steve Ballmer laughed at the iPhone in 07
Your right they can continue to drop 25% of calls and not do anything about it.
Oh, and it's always cool to be taking on customers (the 1-5 gb a month users) & happily taking a loss or passing costs on to other users.
Both sustainable ideas. Yep.
Point is 'something' has to give.
sustainability strategy should be based solely around network issues without tweaking only iPhone user's data packages. that's what makes them different from other smart phone packages. I understand the heavy usage effects the network but guarantee if they slap a price point on a package in order to limit usage and in turn "fix" the network issues, that won't be a win win. lots of people, I'm assuming, have At&T because of their iPhone that they want so bad. what happens when their pricing turns into what every other provider offers for a smart phone? "maybe I go shopping".
how are they "happily taking a loss or passing costs on to other users" by offering iPhone users a monthly $30 no limit data package? If they wanted to offer a no limit data package with the iPhone, they should've made sure from the beginning that their network could support it without negatively effecting everyone. Don't punish the iPhone subscribers with all of a sudden having to pay for usage when the majority of their newly acquired subscriber base probably came on board for the 'unlimited' luxury pricing in the first place.
Spend the $$ to somehow bring down the drop call rate without punishing your iPhone subscribers, and I guarantee the ROI will be positive in the long run by them not only keeping current customers but gaining some new in the process. That to me would be the ultimate sustainability project IMO.
Too long, didn't read
Cellphones and smartphones have taken over alright.
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