AT&T May Fine iPhone Users for Using Too Much of Its "Unlimited" Data
December 9, 2009 10:45 PM
comment(s) - last by
(Source: The Huffington Post)
"Keep in line and don't get a fine" -- may be AT&T's new order of business in order to try to keep its network afloat
It's no secret that AT&T's network leaves something to be desired. AT&T admits that geographic coverage
, but insists that 75 percent of customers have "access" to 3G coverage.
However, in certain cities the situation is reportedly particularly dire, with an Apple store in New York City reporting
30 percent dropped call rates
to be the norm. As
's Shane McGlaun comments in a
about AT&T's initiative to roll out an app to identify regions of poor coverage: "
All I can say is that I hope AT&T has a server with lots of storage space because near as I can tell the service sucks everywhere."
Now AT&T may be resorting to a new plan to try to stretch its struggling 3G network --
fining iPhone users
that use too much data. Wait, isn't part of the iPhone data plan access to unlimited data transfer? Yes, that is the case, but it turns out that AT&T is considering plans to make "unlimited" mean "don't use too much or we'll fine you".
The issue was plans were let slip by
AT&T executive Ralph de la Vega at the UBS conference in New York. He complained that 3 percent of the iPhone users are using 40 percent of the bandwidth. He complains that these bandwidth hogs are feasting on such forbidden fruit as streaming music and video and that his network just can't keep up.
He says that his company plans to force the users to "reduce or modify their usage." He describes, "We've got to get them to understand what represents a megabyte of data."
's Epicenter blog
that AT&T instead stop selling iPhones in San Francisco and New York, or at least stop selling the Major League Baseball app, which streams live baseball games to users’ phones. As the blog points out, the app is quite popular and may be straining the sports-fan-packed networks of NYC and San Fransisco. No need to fine, just cut the app, they suggest.
AT&T took issue to the negative tone of some of the pieces on the topic and pointed out that it will have spent close to $20B USD in 2009 to upgrade its network.
recently had a chance to interview the company about its problems -- you can check that out
In other news, there's renewed hope that the iPhone could land on Verizon's U.S. network in 2010. A Piper Jaffray analyst cited that he was
70 percent sure
of a Verizon iPhone in 2010.
This article is over a month old, voting and posting comments is disabled
Here's a thought...
12/10/2009 1:55:01 AM
maybe ATT should tell it's investors that they need to invest more of the profits into bettering infrastructure, in order to fulfill current obligations and keep their customers satisfied, and to attract new ones.
RE: Here's a thought...
12/10/2009 8:02:23 AM
Yeah but why waste the money improving your infrastructure now that your pissing off all your most valued customers and driving them away. In a few years the network will be fine again because all the high data users have left for a better provider (one that actually offers unlimited data) The money is better spent lining the pockets of the idiotic/brain dead executives who actually come up with stuff because come on they really need that 20th beach house in Aruba ya know. /Sarcaism
"Spreading the rumors, it's very easy because the people who write about Apple want that story, and you can claim its credible because you spoke to someone at Apple." -- Investment guru Jim Cramer
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