As most of my class mates in my consumer centric strategy class know, I am not a big fan of AT&T, as evidenced by my less than flattering presentation about the company and its myriad of problems.
So, now, once again, from the same network that gave a new meaning to "dropped calls" (i.e. you actually smash the phone on the ground after the 30th time in the day it happens to you) we now present "limited data access!"
http://www.wired.com/epicenter/2010/06/atts-data-limits-reign-in-cloud-based-media-services/
So once again, a company resolves the network issues that it has but not really resolving or fixing the issue at all. Rather, it sends us back into the stone ages, or also known as the era of limited data and network access plans (anyone thinking AOL and its cap-limited dial-up as they read this???)!
Ironic than isn't it that iPhone users are perhaps the single most important reason for the success of AT&T, as well as the biggest pain in their backside! Network Hogs! In any case, AT&T's latest announcement of limited data plans and the absolute abandonment of their currently theoretically "unlimited" plan (you use it only if you have reception) has far reaching implications for content providers and app developers that were only getting started reaching their target in whole new ways. $15 buys you 200MB of data. $25 buys you 2GB. In both cases you pay more if you go over the limits. No word yet if this is going to impact the ipad, but im thinking it will, given that it has also 3G connectivity.
According to the article, cloud computing, especially online music streaming is going to suffer. Another area that is going to be impacted is high network usage apps such as Wired Magazines electronic version which will use approx. a quarter of the $15 plan in one sitting.
If I was a developer, I would most definitely be annoyed by this recent development. Here I was spending time and money evolving with the types and developing content more suited to a population constantly on the go. Here I am preaching to my advertisers about how my new app, medium, etc. will be the best way for them to reach their target audience, promising them the sky and beyond, while at the same time making some money in the process. Yet now, consumers might think twice before downloading the latest music on their phone, or viewing my fantastic new magazine on their mobile device.
AT&T, I want answers! That's what I would say!
1 comment:
This is indeed ridiculous. Nobody is used to pay for internet usage by data volume anymore. I wouldn't be surprised if this would finally lead to the consumer uproar AT&T had coming for a while.
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