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12.03.2009

Enjoy All The Data While You Still Can - Tech/Telecom Thoughts

The iPhone is a mixed blessing for AT&T (T). Well it has been great for ramping up the subscriber base the performance of their network has steeply declined. What does it take for the iPhone to no longer be a gift but a curse?

In a research report out from Bernstein it is estimated the average iPhone user consumes 5x-7x as much monthly bandwidth as an average subsriber, and more than double the typical 3G smartphone user. With heavier users consuming 1-5 GB a month. The report goes on to predict that this will trigger usuage-based pricing in the future as competitors could take advantage of this with lower-priced alternatives for those who don't need as many frills.

My thought is that they need to do something about the network, even if that means higher prices. Users getting 1-5 GB of bandwidth a month will pay, they prob. have the $ from all that time they are spending using the internets. Or who knows maybe they are just 'surfing' and 'taking names in web-based java app games' on their commute. Regardless, this user will pay. If not they are not worth it, the calls dropping, the dip in robustness needs to get fixed sooner rather than later. iPhone exculsivity is up next year and people who were quick to change in first place, might be quick to change back

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