We've noted for some time that 4G wireless plans are generally based around the idea of a pricing funnel disguised as value and choice, where users are shoved toward tiers where they overpay for data pools they never actually use. Introductory plans (usually 200-300MB) are set just at a point where they offer too little usage for most users, requiring consumers sign up for more expensive plans (usually 2-3 GB) that provide too much usage for most users.
Omitted of course is a reasonable median plan that would make the most sense for most users, since actually offering value would lose money for AT&T (though it might go a great way in improving AT&T's dismal customer satisfaction rankings). These numbers are adjusted by carrier bean counters as user consumption averages change, with the goal of course always being to shove the most people at any one time to the most expensive plans.
Apparently trying to be helpful, Consumer Reports recently took a look at data from Validas and found that one in four grandfathered AT&T unlimited users would save money if they switched to AT&T's lowest metered plan (200 MB):
quote:
The usage data, provided to us by Validas, a company that tracks wireless data coverage, shows that about 48 percent of AT&T unlimited-plan subscribers, who pay $30 a month for their data service, use no more than 300 megabytes of data a month, on average. AT&T's 300MB-a-month data plan costs $20 a month. So subscribers who use little data could save more than $100 a year by switching to it.
The logic here is a little flaky, however. Unlimited users pay $30 a month for unlimited data (ignoring AT&T's
throttling and other shenanigans for a minute). While 48% of unlimited users might not reach their 300 MB cap any given month, when they do (or a family member does) -- they need to shell out $20 for each 300 MB of data consumed. That's $40 a month for 600MB of data versus the same $30 they'd pay for no limits and no confusion. If they're lucky, they can convince AT&T to swap them to the $30, 3GB plan for the month which would be a grand total savings of -- zero.Consumer Reports also assumes that just because 300 MB is ok for those users
right now, things are going to stay that way. Looking at the
actual data from Validas (who does do very helpful analysis) shows that at the rate median consumption is growing, Consumer Reports proposed "savings" will last all of a few months:
quote:
If the pattern continues, the median user will actually pass the average user in data consumption; in this future, rather than “data hogs” pulling up the average, most users will probably soon be bumping the limits of their tiered plans while a comparably few holdout “stingy” data users pull down the average. At the current rates of increase, the median Smartphone user could consume over 7GB of data in certain months before the end of 2014 while the average Smartphone user would probably get by on just 1.5GB.
Unlimited data continues to offer the best value to consumers, which is why AT&T killed it and is constantly trying to kick these grandfathered users out to pasture using all manner of
obnoxious efforts. They certainly don't need Consumer Reports to help in this endeavor.