AT&T to end unlimited mobile data plans June 7 for new customers

[kranky]

I bet it's because of capacity problems.

NEW YORK (Reuters) - AT&T Inc plans to stop offering an unlimited pricing plan for new subscribers to its mobile data services, a move that it says will cut prices for as many as 98 percent of its customers.

The exclusive U.S. provider for Apple Inc's iPhone said the new metered pricing, which takes effect June 7, means the more customers use their phones for web surfing the more they will have to pay for the service.
Current customers can continue to use the company's $29.99-a-month unlimited data plan, but new customers will be shunted to the new plan, which benefits light users of the data service but costs more for heavy users.

The company is betting that by curtailing downloads by heavy users, it can make the wireless Web more affordable for more people. If it reduces downloads, the new pricing plan may also ease capacity constraints that have caused network problems for the company in high usage areas such as New York.

The new plans would start at $15 a month for downloads of 200 megabytes of data. That equals about 400 web pages, 1,000 e-mails with no attachments, 50 online photos online or 20 minutes of video, according to AT&T.

If users exceed the 200 megabytes usage they will automatically be charged another $15 for another 200 megabytes. The company said 65 percent of its users use less than 200 megabytes of data per month.
The next tier costs $25 for 2 gigabytes of data, which is ten times more downloads than the 200 megabytes plan. AT&T said 98 percent of its customers use less than 2 gigabytes of data.

The $25-a-month customers will be charged another $10 a month for another gigabyte of data in the same month.

Users of Apple's iPad, for which AT&T is also the only U.S. service, will be offered $25-a-month plans for 2 gigabytes of data, replacing the current $29.99 unlimited plan.

 

[spidey07]

Sounds like a win for everybody. Lower prices, better service, those that abuse must pay for it.

 

[effowe]

Hm, this seems to coincide with the rumored 4g release date of June 7th.

 

[Cal166]

Wonder when Verizon will be selling the iPhone

 

[RadiclDreamer]

Sounds like a win for everybody. Lower prices, better service, those that abuse must pay for it.

Yeah except the caps are very low. I think $15 for 2GB would be more like it.

 

[chin311]

Hm, this seems to coincide with the rumored 4g release date of June 7th.

right! along with the jacked up early term. fee.

hMMMMmmMM i wonder what could be coming outtttt

 

[child of wonder]

Sounds like a win for everybody. Lower prices, better service, those that abuse must pay for it.

Companies don't do things to earn less money, they do it to earn more.

This will net AT&T more money as people exceed the cap because if you want an iPhone or 3G iPad you will shell out the $$$ for an AT&T data plan.

 

[MotF Bane]

Way too low, AT&T is looking for more money. I hope VZW doesn't follow suit, but they probably will.

 

[tokie]

This is a good thing. Unlimited = crappy service, especially when it runs off a limited resource like radio spectrum.

They also made some good plans on the overages, by charging you per GB over. Here in Canada, they charge you per megabyte over your limit. Basically, you bend over and take it. AT&T seems to be doing a much more reasonable thing.

 

[spidey07]

Companies don't do things to earn less money, they do it to earn more.

This will net AT&T more money as people exceed the cap because if you want an iPhone or 3G iPad you will shell out the $$$ for an AT&T data plan.

The 2 GB plan is less than people pay now.
:confused;

 

[tk149]

The 2 GB plan is less than people pay now.
:confused;

I'd bet AT&T will charge quite a bit more if you go over the 2GB/month. Kind of like if you go over your minutes/month. AT&T will make more money.

 

[Ksyder]

so a new customer does not have the option of "unlimited" data?

 

[slag]

repost

http://forums.anandtech.com/showthread.php?t=2079402

 

[ch33zw1z]

The 2 GB plan is less than people pay now.
:confused;

For unlimited, or a 5GB cap. So if you buy the 2GB plan ofr $25, then it's $10 each additional 1GB, it'll be *drumroll* $55 for the same amount of data usage..

If I ever get a phone that requires a data plan, it won't be with AT&T. Apple can keep 'em..

 

[child of wonder]

The 2 GB plan is less than people pay now.
:confused;

Yes, but as you yourself have pointed out, bandwidth demands double every 2 years.

People using iPads and iPhones are going to use more and more bandwidth as time goes by. 2GB may seem "reasonable" now, but AT&T is banking on recooping any short term losses by hitting a lot of people with the $25 2GB fee plus another $25 when they go over.

Trust me, no one at AT&T has said "how can we lower costs for our poor customers?"