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

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

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!


amarryat
Verizon FiOS

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