AT&T Says iPhone Usage Based Pricing is Inevitable

Thu, Dec 10, 2009

... Apple iPhone 3GS, News

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AT&T told investors at a USB conference in New York that it will give high bandwidth users incentives to “reduce or modify their usage”. Amidst poor public perception due to a network issues, AT&T has decided put iPhone users who watch video on tighter leashes, according to an Associated Press report.

AT&T head of consumer services, Ralph de la Vega declined to comment on when these “incentives” would happen but said that usage-based pricing for data is inevitable. “We need to educate the customer … We’ve got to get them to understand what represents a megabyte of data,” de la Vega said. “We’re improving all our systems to let consumers get real-time information on their data usage.”

De la Vega says three percent of “smart” phone users are consuming 40 percent of the network capacity with a majority of the high-bandwidth activity being video and audio streaming.

Way to go AT&T…

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