AT&T May Fine iPhone Users for Using Too Much of Its "Unlimited" Data
December 9, 2009 10:45 PM
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(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.
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Hating or not...
12/10/2009 5:31:03 PM
When a company fails as massively as 30% failure
... they need to pay for it dearly. So why isn't AT&T paying for it dearly? Because the iPhone is a spectacular piece of equipment, and they locked in a ridiculous exclusivity agreement. Does that allow them to screw consumers? Apparently... which is exactly why the FCC should start forcing these service providers to meet certain expectations. >10-15% call drop rate? Fined. Calling a limited data plan unlimited? Fined. Too many cases of accidentally charging a customer for something? Fined.
I don't know if DailyTech really does quote that figure everywhere... I know I have seen it before. But who cares? AT&T executives should be eating humble pie every day for such an embarrassing number... to blame it on consumers is really really pathetic.
I don't know why people stick with AT&T... even if they do have the iPhone. I have Sprint, they are hemorrhaging customers, and I have excellent service. Unlimited (but still limited ;) everything, and I pay $25.60 a month for my line on a family plan. I get a $150 credit for a new phone every 12 months (not 24). I never have dropped calls, and the service works well around the nation. The whole telecomm. industry is just bizarre to me. Why get hung up on a phone for over-priced crap service? I would pay twice as much for service elsewhere, and between that and the 12 month upgrade credit of $150... well, my phone is usually the best one among my friends, because I can upgrade it more often.
Is my current phone as good as the current iPhone? It's up for debate, I think most people would say "no", but I have a HTC Touch Pro 2, and it's great. It's certainly better than the previous iPhone, and my next phone will be better than the current iPhone. So why are people willing to forgo good, and cheap, service just to have a nicer phone for 6-12 months? I dunno... but obviously the executives at AT&T do, and good for them for carving out that little niche space and filling it with the souls of millions of hapless iPhone users unable to complete a phone conversation on their cell
. I guess phone calls are so 1870's anyways...
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