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Hardware 2.0

Adrian Kingsley-Hughes

First AT&T will educate, later comes the price hikes

By | December 10, 2009, 11:43am PST

While most cell phone network operators are wondering how they can encourage users to make more use of the data network, AT&T wants to “educate” heavy users in order to curb their insatiable appetite for date.

Speaking at an event in New York, AT&T’s head of customer services Ralph de la Vega said that the company was looking into ways to get those users who are sucking at the data teat hardest to “reduce or modify their usage.”

“We need to educate the customer. We’ve got to get them to understand what represents a megabyte of data.”

According to De la Vega 40% of AT&T’s bandwidth is being consumed by 3% of users. Video downloads and Internet radio are the biggest network hogs.

So, will it end with just education? Probably now, especially since De la Vega hinted at data pricing. Currently iPhone customers get unlimited (in other words, 5GB) data. Given how hard these users are hammering the network, despite the fact that most users don’t come close to that 5GB limit, it’s clear that AT&T can’t deliver on this for much longer.

Note: Want to know what your data usage is? There’s an app for that!

So, could this be a money-spinner for AT&T? After offering unlimited (of sorts) data plans, and getting people hooked, will users be willing to pay more for their downloads? I’m not sure. People are overall pretty dissatisfied with AT&T and paying more money could very well be the last straw for many, especially if the iPhone is available on other networks.

So, would you pay more for data downloads? 5GB limit?

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Adrian Kingsley-Hughes is an internationally published technology author who has devoted over a decade to helping users get the most from technology.

Disclosure

Adrian Kingsley-Hughes

All opinions expressed on Hardware 2.0 are those of Adrian Kingsley-Hughes. Every effort is made to ensure that the information posted is accurate. If you have any comments, queries or corrections, please contact Adrian via the email link here. Any possible conflicts of interest will be posted below. [Updated: February 23, 2010] - Adrian Kingsley-Hughes has no business relationships, affiliations, investments, or other actual/potential conflicts of interest relating to the content posted so far on this blog.

Biography

Adrian Kingsley-Hughes

Adrian Kingsley-Hughes is an internationally published technology author who has devoted over a decade to helping users get the most from technology -- whether that be by learning to program, building a PC from a pile of parts, or helping them get the most from their new MP3 player or digital camera.

Adrian has authored/co-authored technical books on a variety of topics, ranging from programming to building and maintaining PCs. His most recent books include "Build the Ultimate Custom PC", "Beginning Programming" and "The PC Doctor's Fix It Yourself Guide". He has also written training manuals that have been used by a number of Fortune 500 companies.

Adrian also runs a popular blog under the name The PC Doctor, where he covers a range of computer-related topics -- from security to repairing and upgrading.

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Instead of taking a proactive approach...
D T Schmitz 10th Dec 2009
to fix an infrastructure bandwidth capacity problem, AT&T are planning on being 'punitive'.

That makes me want to switch carriers at contract renewal time.
0 Votes
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how can AT&T
Mectron 10th Dec 2009
still be in business?

Unlimited is UNLIMITED, not 5GB (about 2 days worth of internet, not 30 days)

AT&T seem to have a very higth desire to sink.

After this CRIMINAL ACT, if anyone is stll doing any kind of business with AT&T, they should seek medical attention/
0 Votes
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Ah, Yes... Re-Education Camps...
sismoc 10th Dec 2009
I remember how well those re-education camps worked for the Soviet Union. Sending a few "data hogs" off to be "educated" will send a strong message to all of AT&T's customers.

These guys are a laugh riot.
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I switched...
sunflier 10th Dec 2009
I switeched from AT&T to Verizon earlier this year. I'm sure glad I did too.
0 Votes
+ -
Instead of taking a proactive approach...
D T Schmitz 10th Dec 2009
to fix an infrastructure bandwidth capacity problem, AT&T are planning on being 'punitive'.

That makes me want to switch carriers at contract renewal time.

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