The comments from Ralph de la Vega, president and CEO of mobility and consumer markets, came just a week after the AT&T official said the company would likely provide incentives to encourage bandwidth-hogging customers to "reduce or modify their usage." What kind of incentives were never made clear, though de la Vega said it is inevitable that high-bandwidth users will be charged for what they consume.
Those comments fueled speculation that the company could move away from its current unlimited data plan available for iPhone users. But in an interview with The Wall Street Journal, de la Vega said his company has no intentions to do so.
"We have not made any decision to implement tiered pricing," he reportedly said.
Instead, AT&T plans to make more free Wi-Fi hotspots available for mobile customers. The feature was introduced last year to great success. Following the introduction of iPhone OS 3.0, AT&T saw 15 million users connect to its Wi-Fi network in one quarter alone this year. The company offers more than 20,000 hotspots.
AT&T also noted it is investing in "femtocells" that use a home Internet connection and serve as a mini cellular tower. That product was tested earlier this year in Charlotte, N.C. The device reportedly offers 3.2Mbit/sec 3G service to users in their home.
Through both of these methods, AT&T hopes it can relieve some of the pressure on its network that has caused issues. Issues with dropped calls and spotty reception have led to bad publicity for the carrier, which market leader Verizon has attempted to capitalize on with a series of advertisements.
Earlier this year, the iPhone was referred to as the "Hummer of cellphones" as AT&T's network struggled following the launch of the iPhone 3GS. A report said that the average iPhone user consumes 10 times the bandwidth of a typical smartphone user. Last week, de la Vega noted that 40 percent of AT&T's network capacity is consumed by just 3 percent of smartphone users.
34 Comments
How exactly is AT&T "investing" in femtocells?
They make customers buy them, then make customers pay monthly to use them, and make customers use their own (the customers) internet connection for voice and data transport. This is the OPPOSITE of investment.
This is suckering your customers into paying you EXTRA for the privilege of being able to use their cell phone in places they frequent, but that you couldn't be bothered to actually provide coverage at.
I'm all for AT&T "investing" in providing me a Femtocell to install in my house so I can get more than 1 bar of coverage and end the constant dropped calls. I'm so interested I might just try calling them up and asking them to send me one gratis. I don't expect them to but hey, why not ask? Seems to me it'd be cheaper than them upgrading their local tower which they don't seem inclined to do....
As for the tiered pricing, I'm actually for it. Let them continue to offer unlimited data at the current rate. But offer a discount if the customer is willing to accept a cap. Everyone's happy.
Hey, AT&T. How about letting your mobile users use your WiFi hotspots free with their notebooks like your high speed Internet customers get to. I bet that would help your precious 3G network out a bit.
Good thing I have no issues with my iPhone ever. Great 3G, 850 Mhz spectrum and solid data speeds.
As for the tiered pricing, I'm actually for it. Let them continue to offer unlimited data at the current rate. But offer a discount if the customer is willing to accept a cap. Everyone's happy.
That would suit me just fine as well.
I just got back from 2 weeks in Central America where I had the data roaming turned off the whole time. Since almost every where I went I was able to get WiFi there was only a couple times when I thought to use data but forgot I was not on WiFi. Once I wanted to use Shazam while at a bar to figure out the name of a song that was playing, so not really mission critical. The Google map detail is just pathetic down there so nothing missed in that regard either.
Bottom line is, I could live with a really small data plan even here in the states since I'm usually on WiFi except for the maps deal which I do use from time to time while out and about.