Unlimited data fans on Verizon and AT&T being strong-armed to comply or at least pay a bit more for the privilege, but at least the FCC has a sense of humor.
Hello! And welcome to our Friday column, Worst of the Week. There’s a lot of nutty stuff that goes on in this industry, so this column is a chance for us at RCRWireless.com to rant and rave about whatever rubs us the wrong way. We hope you enjoy it!
Wow, that was a rough week for those that can’t get enough wireless data. Or, I guess I should say a rough week for those consumers that really love wireless data and are tied to that access through either Verizon Wireless or AT&T Mobility.
First of all, unlimited data has had a checkered history in the mobile telecom space. I remember back in my early days when data connectivity was metered out to customers on a per-minute basis both because consumers could understand what a minute meant and carriers weren’t really ready to track megabytes of usage. These connections were run over 2G networks, with few rate plans actually offering up unlimited data access.
Then, with the roll out of 3G services, carriers began to move towards megabyte-based billing and the option of unlimited data access. This was back in the day when there was really not much happening in terms of mobile data content beyond a carrier’s walled-garden portal and device screens were still more postage stamp-sized than postcard-sized.
I still remember talking to a carrier representative about the potential impact of unlimited data on network capacity, with a response that the carrier could only hope consumers used enough wireless data to actually have an impact on their network. Of course, this was back when the only real congestion on mobile networks occurred during drive times on weekdays or select national holidays. (Hi mom. Guess where I am calling you from?)
As we all know by know, once Apple launched its first iPhone now going on 10 years ago, all bets were off. Even better, carriers began to realize that perhaps flat-rate unlimited data services were not in their best interest and began to either roll those offers back in or at least increase pricing in order to keep the bean counters happy. I can only say that good times have ensued.
Now, back to this past week.
For those rocking the “big red,” the carrier is said to have yet again moved on “migrating” customers from its since discontinued “unlimited” data plans to one of its data capped “Verizon Plan.” The latest push came with a note that unlimited customers averaging more than 200 gigabytes of use per month will receive word they need to make the move before Feb. 16, or be banished from Verizon Wireless’ loving embrace.
This is not the first time Verizon Wireless has attempted to smother the data hopes and dreams of its unlimited customers, but it’s sort of nice to see where it’s drawing the line. And that line is at 200 GB.
Now, I am not one to judge how freaky people like to get with their unlimited data seeing as it’s unlimited and all, but dang! 200 GB per month? That’s some serious giggity.
AT&T is also looking to quash the love of unlimited data, or at least charge a bit more for it. The carrier, which sort of led off the domestic industry’s attempt to wean consumers off of unlimited data, is now asking customers still clinging onto those plans to cough up an extra “Lincoln” per month in order to continue with that relationship.
https://youtu.be/NcGhLcVqxf0
It should be noted that while claimed to be unlimited, those customers currently operate under the uncertainty that they may have the speed of that access crimped whenever AT&T feels like it, or whenever that access is coming from a congested part of its network. However, the extra five spot does not get a customer out from under the possibility of speed throttling should AT&T Mobility see its network resources strained.
(As opposed to Verizon Wireless, AT&T is not throwing around usage numbers, which seems to be a nice move in this day and age of withering privacy.)
But, I am also guessing that at this point most customers still clinging to their AT&T Mobility unlimited plans are not going to be swayed by an extra $5 per month charge. If we are to assume these customers are similar to those on Verizon Wireless in that they are using hundreds of gigabytes per month, I don’t believe there is anything on the current AT&T Mobility rate sheet that would prove tempting.
Making all of this unlimited data chatter even better was word this week from the Federal Communications Commission on its current view of sponsored data and zero-rated services that allow carriers to offer up free – to the point of unlimited – data to customers under certain conditions. The report focused on products such as AT&T’s Sponsored Data and more recently launched zero-rated video content from subsidiary DirecTV; T-Mobile US’ Binge On platform; and Verizon Wireless’ Go90 service.
The FCC let AT&T’s Sponsored Data and T-Mobile US Binge On services basically slide in that the carrier’s were either not charging third-parties access to the platforms or the carrier’s had managed to show they were not making any profit from providing access to third parties.
However, in the case of the AT&T DirecTV zero-rated service, the FCC seemed wise to the notion that AT&T’s claim of charging DirecTV the same for data that it charges third parties does not quite fly when what DirecTV is paying is just going from one pocket to another at Mega AT&T Corp.
I would suspect we will see a lot of back-and-forth on this topic in the coming months, with the pending change of administration playing a significant role in the outcome. If I was a betting man, I might put $5 or so on AT&T in this battle.
One saving grace for Verizon Wireless in the FCC’s decision, and proof that the government agency has a sense of humor, is the perceived lack of success of the Go90 service, which the FCC noted made the carrier’s lack of transparency in the wholesale pricing structure less of a concern. So … well done Verizon?
As mentioned earlier, with expected changing dynamics in Washington, D.C., I suspect and can only hope the uncertainty around unlimited data continues. It should be great to see how the industry continues its attempt to convince consumers that they don’t want unlimited high-speed data for a flat rate.
I welcome your comments. Please send me an e-mail at dmeyer@rcrwireless.com.
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