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Tag: data plans

  • Mobile Providers to Rely on Multiple-Device Plans For Future Growth

    The smartphones markets in established markets such as North America and Europe have already begun to saturate as even price-sensitive consumers can now afford low-cost smartphones. Even the tablet market’s explosive growth has begun to show signs of slowdown.

    As mobile providers begins to run out of new customers to entice with smartphones, they will have to get creative and competitive with both their offerings and marketing. T-Mobile has led the way this year with its “Jump!” pricing plans and more recently by offering unlimited international data service at no extra charge to customers.

    All of the major U.S. mobile providers now provide no contract, no subsidy plans similar to T-Mobile’s Jump! plan. Market research firm ABI Research this week predicted that these services and more will be key to mobile providers’ growth in the coming years. The firm believes that carriers will have to offer a broader product range in the coming years, including convertible PCs, and wearable computing devices. Data plans covering a variety of devices on the same plan will also be key for carrier growth in order, says IDC, to drive up revenue coming from each customer instead of luring in new customers.

    “U.S. carriers need to ensure they have the right multi-device data plans, billing infrastructure, user analytics and segmentation in place to ensure their use of subsidy is well spent across these new device categories,” said Nick Spencer, senior practice director at ABI. “Insuring that these devices are actually using their networks and services is the first step in driving revenue out of this opportunity.”

    ABI believe that the trend toward selling more devices to each consumer will also benefit device manufacturers. The firm cautions, however, that those same manufacturers will have to diversify significantly to keep up with unpredictable industry trends.

  • AT&T Launches New Global Packages For Voice, Text, and Data

    AT&T Launches New Global Packages For Voice, Text, and Data

    One of the most frustrating experiences to deal with when planning a trip overseas is how to keep a smartphone working without paying hundreds of dollars in international roaming fees. AT&T today unveiled its new global add-on packages, which it claims will make traveling abroad more affordable. The new packages will debut on November 16.

    The wireless carrier’s new Travel Minutes packages will provide customers with a block of voice minutes in three different regions: Canada and Mexico, Europe, and the “rest of the world.” Three different tiers priced at $30, $60, and $120 are available for each of these regions, though the amount of minutes granted in each is different. For Canada and Mexico, the tiers are 80, 200, and 500 minutes. For Europe and the rest of the world, they are 30, 80, and 200 minutes. Overage fees for Canada and Mecico are $.50 per minute, for Europe $1 per minute, and for the rest of the world $2 per minute.

    The new messaging package AT&T will offer replaces the current 500-message package with a 600-message package for $60 per month (that’s 10 cents per message). The messages can be either text, images, or video.

    The global data packages for AT&T haven’t changed, and are $30 per month for 120MB, $60 per month for 300MB, and $120 per month for 800MB. However, customers on the two more expensive plans will now have access to 1GB of Wi-Fi data through AT&T’s international Wi-Fi hotspots.

    As the prices listed above suggest, keeping connected while traveling abroad is still expensive, especially for longer trips. A full order of voice, text, and data for a month-long European vacation would cost $300 for only 200 minutes, 600 messages, and 800MB.

  • AT&T Joins Verizon In Charging You More For Shared Data Plans

    AT&T Joins Verizon In Charging You More For Shared Data Plans

    Verizon caught a lot of heat from consumers when they launched the Share Everything Plan a few months ago. Not only were they taking people off of unlimited data, but they were making them pay large fees for a very small amount of data to be shared across all devices on a plan. AT&T said they would be doing the same thing, and that plan will be going into effect in August.

    AT&T announced today that the Mobile Share plan will be launching in late August. It will allow new and existing customers to share data across all smartphones, tablets and other devices that use their network. Like Verizon’s plan, those who sign up for AT&T’s Mobile Share plan will get unlimited talk and text.

    Both Verizon and AT&T offer customers the ability to stick with their old plans if they so wish. It’s a nice gesture, but it would be even sweeter if they let us keep our grandfathered unlimited data plans.

    “We offer customers a broad choice and the best lineup of plans, now enhanced by Mobile Share,” said David Christopher, chief marketing officer, AT&T Mobility. “With these new plans, the more you share, the more you save. They’ll be a good fit for a variety of new and existing customers. But if customers want to stay on their current plan or choose from our existing plans, they can do that, too. It’s their choice.”

    So how does the price compare? For a standard 4GB of shared data, a family of two will have to pay $150 for Verizon’s plan. That’s $80 for two smartphones and $70 for 4GB of shared data. AT&T’s plan costs the same for the same set up. Where AT&T gets interesting is that they lower the price on phones per line as you increase your data.

    Starting at 10GB shared data for $120 a month, each phone on the line only costs $30 on AT&T’s plan for a total of $180. On Verizon, the cost per phone stays the same at $40 with 10GB costing $100 a month for a total of $180. As you can see, both plans cost the same with both companies reducing the cost in different areas.

    As for extra devices, each basic phone you add onto your AT&T plan will cost an extra $30 a month, laptops will cost an extra $20 and tablets/gaming devices will cost an extra $10. If anything, these extra expenses should just convince you that it’s smarter to stick with just Wi-Fi for your laptop and tablet needs.

    Neither plan is super consumer friendly, but at least both carriers give people the option of sticking with their old plans. As more and more people begin to buy into smartphones, I see the pre-paid plans taking off. You may have to pay for the unsubsidized phone upfront, but it saves money in the long run.

  • Verizon Spokesperson Unable to Explain Data Plan Changes

    Verizon’s shift to tiered data plans and its killing off of its unlimited data plans has upset many subscribers, but it wasn’t unexpected. The major wireless providers in the U.S. have been shifting away from the unlimited data plans of the past for a while now. It’s clear why: smartphones have shifted phone usage away from voice calls toward messaging and data. Simply put, data is where the money is. What’s strange is that because the carriers started off giving out unlimited plans, their public relations departments are having trouble describing how newer, more expensive, data plans that give customers less data are actually customer-friendly. The incongruity between the carriers’ statements and reality can be frustrating, but they can sometimes make for quite a farce.

    In an interview today on American Public Media’s Marketplace, reporter John Moe had the opportunity to speak with Verizon spokesperson Karen Smith about why the company was moving toward higher-priced tiered plans. At first, Moe gives her the benefit of a couple of leading questions. He asks whether Verizon is afraid of running out of room on their network. She responds, “Not at all,” and states that the company is “aggressively” expanding its 4G LTE network. Ok, so Moe asks if Verizon needs more expensive data plans to pay for that expansion. Smith doesn’t answer the question, but instead states that Verizon has switched to a “device model” and that they are going to charge customers by the megabyte. “Why?” asks Moe. What follows is the most awkward pregnant pause I’ve ever heard.

    Smith, after a good 10-count, follows up with statements explaining that that higher data usage actually is causing speed and reliability concerns for Verizon’s network. Obviously, this contradicts her answer to Moe’s first question. Oh, well. Her answers provided all the information anyone really listening would need. It’s easy to understand that, “We can’t give away minutes and need to charge you more for data to maintain our revenue,” isn’t the most tactful way to frame the story for Verizon.

    You can listen to the exchange below, and hear for yourself how desperate Verizon Wireless is to maintain the image that their new plans are the height of customer-friendliness. The exchange begins at the 1:15 mark:

    (via Reddit)

  • New Netflix App Runs on Wi-Fi to Avoid Wireless Data Caps

    New Netflix App Runs on Wi-Fi to Avoid Wireless Data Caps

    Many carriers are doing away with their unlimited data plans, putting caps on everything. This has all but eliminated any chance of streaming video becoming popular among smartphone users and putting a damper any money being made by streaming video services on the mobile market.

    According to GigaOm, providers like Verizon and AT&T have asked the popular Netflix service to start charging for bandwidth used by its members with their smartphone app service

    They have tried to convince Netflix to make users pay for bandwidth used on their networks. An absolutely ridiculous proposition. No Smartphone user in their right mind would ever pay data overage charges to watch a streaming video of an unpopular or overplayed movie.

    Realizing this, Netflix responded by allowing iPhone customers to turn of cellular access to Netflix and run the app completely on Wi-Fi. An easy solution for anyone who really wants to watch their favorite TV show/movies on a three inch screen at home. Anyone using Wi-Fi is most likely going to be using is at home, and if they have Netflix they probably have a television or a much larger computer screen to watch it on.

    Granted, some unlimited plans still exist, and there are lots of people out there that were grandfathered into unlimited plans from AT&T and Verizon, but data caps are the current trend, and carriers are doing everything they can to get people to downgrade to capped data plans. Some operators even cut down on speed after a certain limit is reached, so even if you are not over your overage amount, the data stream will be slowed and you will not be able to view a video anyway..

    So basically, they have done away with streaming video, because no one can really use it.

    If anyone thought this money would go to providing more network capabilities in the future, allowing for more data to be transferred and unlimited plans to be offered, one might be inclined to go with idea of data caps. Right now it just seems like a ploy to get the most amount of money they can from smartphone users.

  • 90% of Tablet Use In Wi-Fi: No Need For Data Plans

    If you are putting off buying a tablet because you can’t afford to buy the necessary data plan required to surf the net, you don’t need to. It appears most users are merely using wi-fi to do a majority of their surfing anyway. If you have wi-fi in your home or office, you probably won’t need the connectivity in too many other places anyway.

    Also you could sit at the local Starbucks and use their wi-fi signal. Also, I believe many McDonalds have free wi-fi now. In fact, a growing number of retail locations and hotels/motels have free wireless services available. So you don’t need to spend the extra money on the data plan or the upgrade to make your device 3G and 4G capable.

    90% of tablet computer users do a majority of there internet tasks via wi-fi. That leaves only 10% that need internet access everywhere they go. Who are these people. Probably hardcore gamers, traveling businessman, and various other folks who probably own a smartphone anyway.

    Also, if you really use your pc for music, web surfing, and social networking, the tablet might make a good companion. A clear advantage o a tablet vs a desktop is the freedom to move wherever you want with the device. Lay on the couch, sit on the porch, check all your e-mails from bed, it is a lot more friendly than a desktop pc.

    So if cost is holding you back, it doesn’t have to be as expensive as you think. Consider the options. If you already have wi-fi and a desktop, all you really need to do is pay for the device.

  • AT&T Raises Data Caps, Rates For Smartphone And Tablet Customers

    AT&T Raises Data Caps, Rates For Smartphone And Tablet Customers

    AT&T has announced an adjustment to its data plans for smartphone and tablet customers. Under the current plans, mobile phone and tablet users can choose to pay $15 per month for 200MB of data and $25 for 2GB. Mobile phone users also have the option of paying $45 for 4GB with mobile hotspot and tethering functionality enabled. When the new plans go into effect on Sunday, each plan gets a $5 bump in price, along with an increase in data allowance. The new plans are $20 for 300MB, $30 for 3GB, or $50 for 5GB with mobile hotspot/tethering.

    Of course, those with older plans are not required to switch. AT&T allows older plans to be renewed indefinitely as long as customers don’t make changes to their data plans. Case in point, I’m still carrying around a vintage 2008 unlimited data plan on my iPhone 4S, even though the plan was discontinued in 2010. So, if you’re happy with your current data plan and want to keep it you can, provided you never need to upgrade.

    The new plans go into effect on Sunday, January 22nd.

  • Sprint iPhone 4S To Launch With Unlimited Data

    A month before Tuesday’s Apple iPhone event, before everyone was 100% sure that Sprint would be acquiring the new iPhone, rumors surfaced that Sprint would be launching the new iPhone with an unlimited data option.

    Just two weeks ago, speaking at GigaOm’s mobilize conference, Sprint’s CTO Stephen Bye said that Sprint was committed to unlimited data.

    Now we get confirmation that Sprint will indeed offer unlimited data plans for the iPhone 4S.

    Sprint spokeswoman Michelle Leff Mermelstein told All Things D that the carrier will offer unlimited data plans starting at $69.99. This plan will include unrestricted data as well as 450 voice minutes and unlimited mobile-to-mobile. If you want unlimited everything, data and voice, you’ll need to shell out $99.99 a month.

    On top of those base prices, you can also expect to add a $10 smartphone surcharge.

    This is undoubtedly a big draw for Sprint. They are now offering something that both AT&T and Verizon don’t offer anymore – unlimited data on an iPhone. New customers signing up with AT&T or Verizon will learn that their data plans now work on a tiered pricing structure.

    Will Sprint be able to keep unlimited data plans? Back in September, analysts speculated that Sprint might not be able to offer unlimited indefinitely – that they might opt to switch to a tiered structure once they have pulled a number of users away from AT&T and Verizon.

    As far as all the new traffic that will come from gaining the iPhone – Sprint says they can handle it: “We have every confidence in the ability of our 3G network to handle the influx of devices we expect to get,” said Mermelstein.

    Sprint CTO Stephen Bye, last month at the mobilize conference, said that there was “clearly a cost to support unlimited,” but they were committed.

    The iPhone 4S will drop on October 14th on the Sprint network.

  • iPhone 5 Rumor: Sprint Committed To Unlimited Data?

    Today we got confirmation that Apple is in fact holding a big media event on October 4th to discuss the new iPhone. It had been rumored for a little over a week, and today an invitation was sent out that announced the time, date, location and simply said “Let’s talk iPhone.”

    If the iPhone 5 is unveiled on October 4th, it has been theorized that the actual device will hit shelves sometime in mid-October. We know, of course, that AT&T and Verizon will have the device. But what about the guys in third place – Sprint?

    Here’s why people think Sprint will be getting the iPhone 5 –

    Of course, there has been no direct confirmation from Sprint regarding the next-gen iPhone, but many speculate that the network will offer the device when it finally launches. And when they do, it might come with an unlimited data plan.

    At GigaOm’s mobilize conference, Sprint’s CTO Stephen Bye said that Sprint was committed to unlimited data plans.

    From CNET –

    “There’s clearly a cost to support unlimited,” Bye admitted, adding that not every unlimited subscriber is as high a data user as his or her neighbor. At the same time, Bye emphasized the simplicity of supporting an unlimited data plan, citing the hidden cost for customer care and support related to tiered data plans

    Bye acknowledged the pressure of sticking with an unlimited data plan, however. “There’s a challenge for all engineers to work on how we get the cost structure down,” he said.

    If it actually comes to pass, having the new iPhone on its network could strain Sprint’s attempts to keep the unlimited data option for customers. But for now, they say they are committed to keeping it that way.

    Earlier this month, inside sources quoted by Bloomberg said that there was most definitely going to be an iPhone coming to Sprint. They also said that it would, in fact, come with an unlimited data plan.

  • Verizon to Offer Unlimited Data Plans for iPhone?

    Verizon Wireless subscribers have been waiting a long time for the iPhone to come to the carrier, and soon they will be waiting no longer, as Verizon is expected to offer Apple’s game-changing device within the next several weeks.

    Verizon knows it will be a hot seller, and that along with massive amounts of sales, will come massive amounts of data use, but the carrier is prepared for that, and the solution, at least at this point, isn’t tiered data plans. A Wall Street Journal piece, co-authored by Spencer E. Ante and Yukari Iwatani Kane reports:

    Verizon Wireless has been beefing up its network and believes it will have no problem handling iPhone-type loads, a claim that could be put to the test this year if the carrier signs up millions of subscribers using the Apple Inc. device.

    Verizon Wireless, the country’s largest wireless carrier, is confident enough in its network that it will offer unlimited data-use plans when it starts selling the iPhone around the end of this month, a person familiar with the matter said. Such plans would provide a key means of distinguishing its service from rival AT&T Inc., which limits how much Internet data such as videos and photos its customers may use each month.

    Recent reports indicate that Android devices have surpassed iPhones in the U.S. (comScore), in terms of smartphone subscriptions, but so far, iPhones have only been available through AT&T. The addition of just one more carrier in Verizion could give Apple a big boost in momentum.

    Smartphone subscribers - Android overtakes iPhone

    As far as the unlimited data plans go, don’t expect Verizon to offer them forever. As the WSJ points out, the company has indicated in the past that the industry as a whole needs to move in the tiered-pricing direction. The initial unlimited plans are likely a way to boost sales to the max, as the iPhone comes to Verizon.