Comment on AT&T Raising Wireless Data Price | Jeff Kagan Tech Analyst

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Jeff KAGAN

Tech Analyst

     

On one hand we can expect continual changes to these billing plans for years to come. On the other hand AT&T Mobility suddenly finds themselves losing to Verizon Wireless and is desperately trying to find the right solution to turn things around. I will discuss both.

This is the direction the industry is going in.

Wireless data is growing rapidly. Exploding actually. Just a few short years ago we used wireless phones to mostly make phone calls. However that is changing. The smart phone revolution driven by Apple iPhone, Google Android and all the others like Samsung and HTC is changing the usage demands.

Over just the next few years wireless data will grow to 97% of the usage on the wireless networks, and voice will only account for 3%. That’s an incredible shift.

We are just in the early stages, the first inning, and the carriers don’t know the magic formula yet. And even if they did, that magic formula would continue to change as this new industry matures.

That’s why over the last five years we have seen charged based on usage, then unlimited plans, then usage based charges again, and now an adjustment to that formula.

I would expect to see more changes from AT&T Mobility and Verizon Wireless and Sprint Nextel and C Spire and every player in the smart phone space.

A few short years ago everyone jumped into the unlimited plans. Customers loved it. Now AT&T and Verizon have moved away. Sprint Nextel and C Spire still offer unlimited plans.

Another part of the problem that AT&T needs to fix is they are suddenly no longer winning against Verizon Wireless. AT&T was doing fine when they had a choke hold on the smart phone sector, but now that customers can get iPhones and Androids from every carrier AT&T no longer has that as an edge.

Because of the service problems AT&T has had, and because of the focus on the investor and not on the customer, the company is now starting to struggle.

I hope AT&T Mobility catches their balance once again. In fact I hope every carrier continues to be strong and grow in a competitive marketplace. That level of competition is all that will keep prices low and innovation high and customer service working well.

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Please attribute to Jeff Kagan, Tech Analyst with www.jeffKAGAN.com

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Jeff KAGAN| Tech Analyst www.jeffKAGAN.com

Analyst sharing perspective on the changing industry for 25 years

~ Also Columnist, Author, Consultant, Speaker
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Phone 770-579-5810 Email jeff@jeffKAGAN.com

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