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amarryat
Verizon FiOS

join:2005-05-02
Marshfield, MA
Reviews:
·Verizon FiOS

1 edit

Do you trust AT&T's numbers that 98% use less than 2GB?

If that's the case, then their revenue will drop won't it? Does it make sense for a company to put in place a pricing structure that will cause them to lose money?

An example:

Before: 100% of the people pay $30/mo = 3000.

Now: 98% of the people pay $25/mo (if no one takes the $15 plan) = 2450.

The other 2%, even if they go way over and end up paying $55 instead of 30 = 110.

so 2450 + 110 is less than 3000.

Where is the advantage for AT&T unless their numbers aren't right.

Edit - I am on Verizon anyway and therefore am no stranger to bizarre and annoying tactics.



MovieLover76

join:2009-09-11
kudos:1

The advantage is easy to see when you factor in that the 2% will dwindle, they will switch to other networks, t-mobile or sprint most likely, less strain on there networks from the heaviest users will equal huge savings in network investment, and the attraction of more light users and the network improves thanks to the reduction of heavy users.

Light users are always more profitable than heavy users.


k1ll3rdr4g0n

join:2005-03-19
Homer Glen, IL
reply to amarryat

said by amarryat:

If that's the case, then their revenue will drop won't it? Does it make sense for a company to put in place a pricing structure that will cause them to lose money?

An example:

Before: 100% of the people pay $30/mo = 3000.

Now: 98% of the people pay $25/mo (if no one takes the $15 plan) = 2450.

The other 2%, even if they go way over and end up paying $55 instead of 30 = 110.

so 2450 + 110 is less than 3000.

Where is the advantage for AT&T unless their numbers aren't right.

Edit - I am on Verizon anyway and therefore am no stranger to bizarre and annoying tactics.
It's interesting though, you can twist the stats however you want and it seems AT&T did this.
Also, they probably took into account their blackberry and Windows Mobile platform.

It's even more interesting that they never release any of the "facts" to back their "stats".

I have some stats:
100% of mobile operators want to screw customers .

MyDogHsFleas
Premium
join:2007-08-15
Austin, TX
kudos:5
Reviews:
·Mediacom
reply to amarryat

AT&T stated that these plan changes are revenue neutral. As you observe, if usage stays the same, revenues will go down. Therefore, AT&T must be planning that more users will sign up for smartphones and smartphone plans, due to the lowered prices, therefore they will make up the revenue shortfall.

Hey, lower prices and get more customers. That must be capitalism at work!



88615298
Premium
join:2004-07-28
West Tenness
reply to amarryat

Even if it's is 2% why base things on what is used NOW. Shouldn't at&t be FORAWARD looking? Ok so 1 out of 50 go over 2 GB. What was that number last year 1 out of 100? How about 2 years ago 1 out of 200? How about 3 years ago 1 out of 500? You see my point? Next year it might be 1 out of 25 in 2 years it might be 1 out of 10 in 3 years 1 out of 5. At some point what is considered "heavy" is normal or even light useage. 200 MB is considered "light" useage today. 5 years ago at&t would have called it "heavy".



AzzKicker
Premium
join:2001-02-04
Edinburg, TX

said by 88615298:

Even if it's is 2% why base things on what is used NOW. Shouldn't at&t be FORAWARD looking? Ok so 1 out of 50 go over 2 GB. What was that number last year 1 out of 100? How about 2 years ago 1 out of 200? How about 3 years ago 1 out of 500? You see my point? Next year it might be 1 out of 25 in 2 years it might be 1 out of 10 in 3 years 1 out of 5. At some point what is considered "heavy" is normal or even light useage. 200 MB is considered "light" useage today. 5 years ago at&t would have called it "heavy".
Ya and when that time comes they will adjust. But for now thats how it stands.

Honestly I dont see this as a bad thing because now I can get my wife a smartphone and I know for a fact she wont use more than 2gigs. In fact I use my phone heavily for work, checking email, stocks, etc. I hardly browse web with it, but sometimes do and I thought I was using a lot of data but it turns according to my data use per month I never go over 200mb LOL which was shocking to me. So now, even I can save.
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amarryat
Verizon FiOS

join:2005-05-02
Marshfield, MA
Reviews:
·Verizon FiOS
reply to MyDogHsFleas

said by MyDogHsFleas:

AT&T stated that these plan changes are revenue neutral. As you observe, if usage stays the same, revenues will go down. Therefore, AT&T must be planning that more users will sign up for smartphones and smartphone plans, due to the lowered prices, therefore they will make up the revenue shortfall.

Hey, lower prices and get more customers. That must be capitalism at work!
And it's a great thing! I just don't believe their numbers, at least what I have read here. As for your theory, they would have gotten more users anyway - why would the trend not have continued. I think this will be a double whammy - more customers signing up for smartphones (regardless of the price cut), and more overage revenue. They may claim that only 2% are using more than 2GB, but since the trend on usage has been upward, there is no reason to believe that the 2% won't increase.


88615298
Premium
join:2004-07-28
West Tenness
reply to AzzKicker

said by AzzKicker:

Ya and when that time comes they will adjust. But for now thats how it stands.
Oh so in 2015 they'll have 2010 pricing like how in 2010 they have 2005 pricing. At which point does at&t actually catch-up to modern times?

MyDogHsFleas
Premium
join:2007-08-15
Austin, TX
kudos:5
Reviews:
·Mediacom

said by 88615298:

said by AzzKicker:

Ya and when that time comes they will adjust. But for now thats how it stands.
Oh so in 2015 they'll have 2010 pricing like how in 2010 they have 2005 pricing. At which point does at&t actually catch-up to modern times?
I keep seeing you say this over and over again. My challenge is: show me the US carrier who is pricing their data at 1/10 AT&T's rate, as you assert AT&T should be to have "2010 pricing". If you can't (and I know you can't), then your "modern times pricing" is just in your head and has no relationship to reality.

sonicmerlin

join:2009-05-24
Cleveland, OH
kudos:1

said by MyDogHsFleas:

said by 88615298:

said by AzzKicker:

Ya and when that time comes they will adjust. But for now thats how it stands.
Oh so in 2015 they'll have 2010 pricing like how in 2010 they have 2005 pricing. At which point does at&t actually catch-up to modern times?
I keep seeing you say this over and over again. My challenge is: show me the US carrier who is pricing their data at 1/10 AT&T's rate, as you assert AT&T should be to have "2010 pricing". If you can't (and I know you can't), then your "modern times pricing" is just in your head and has no relationship to reality.
Asking to compare US carriers to AT&T is asinine, given the uncompetitive nature of the wireless American market. Yet even within the US market one can look at Sprint, T-Mobile, or even Verizon to see that unlimited is quite viable.

If such a small % of users are downloading so much data, the effect on the network should be minimal. It's not the amount you download that counts- it's the rate at which you download. And since *that* is essentially capped by available spectrum, the whole tier-based system is one giant deception.


Retired
Premium
join:2002-11-09
Earth
Reviews:
·Time Warner Cable

1 edit
reply to amarryat

Current subscribers will be able to keep their $30-per-month unlimited plans, even if they renew their contracts.

Starting Monday, new customers will have to choose one of two new data plans for all smart phones, including iPhones and BlackBerrys.


»www.vcstar.com/news/2010/jun/03/···can-eat/

=============================

Sounds good to me - since we already have multiple iPhones in our family plan that will remain with the "unlimited" usage.

And honestly, we don't use more that 2GB's on each phone anyway.....so it really doesn't matter if at&t cuts us back later on.

Thats if they ever decide to do it.



amarryat
Verizon FiOS

join:2005-05-02
Marshfield, MA
Reviews:
·Verizon FiOS

said by Retired:

Current subscribers will be able to keep their $30-per-month unlimited plans, even if they renew their contracts.

Starting Monday, new customers will have to choose one of two new data plans for all smart phones, including iPhones and BlackBerrys.


»www.vcstar.com/news/2010/jun/03/···can-eat/

=============================

Sounds good to me - since we already have multiple iPhones in our family plan that will remain with the "unlimited" usage.

And honestly, we don't use more that 2GB's on each phone anyway.....so it really doesn't matter if at&t cuts us back later on.

Thats if they ever decide to do it.
If that's the case, are you going to change your contract so that you get the cheaper new rate? Why not, you will save money?


Retired
Premium
join:2002-11-09
Earth
Reviews:
·Time Warner Cable

said by amarryat:

said by Retired:

Current subscribers will be able to keep their $30-per-month unlimited plans, even if they renew their contracts.

Starting Monday, new customers will have to choose one of two new data plans for all smart phones, including iPhones and BlackBerrys.


»www.vcstar.com/news/2010/jun/03/···can-eat/

=============================

Sounds good to me - since we already have multiple iPhones in our family plan that will remain with the "unlimited" usage.

And honestly, we don't use more that 2GB's on each phone anyway.....so it really doesn't matter if at&t cuts us back later on.

Thats if they ever decide to do it.
If that's the case, are you going to change your contract so that you get the cheaper new rate? Why not, you will save money?
If i changed my contract on all 5 phones on our family plan....i'd save $25 total (oh whoopie doo!).

$5.00 off each phone, big deal. I'd prefer to just keep the "unlimited" data plans that we currently have....just in case..:+)