By Megan Atiyeh
So, the inevitable has finally happened. AT&T has thrown down the gauntlet and put an end to the smorgasbord that is mobile data plans. But why is everyone so surprised? The rumors of this move have been circulating for some time now, and one need only look at operator revenues versus traffic growth to know this party couldn’t last forever. The wild success of devices like the iPhone and iPad have created significant capacity and performance issues on mobile networks, but will tiered pricing plans solve the problem?
AT&T has certainly benefited from the popularity of these “smart” devices, but the company has also had the lonely and painful job of learning first-hand how they are affecting the network. Just last night, I saw a commercial with Dan Hesse, CEO of Sprint, touting the company’s commitment to its all-you-can-eat plans for all services including voice, SMS and data. A short-term attempt to win frustrated AT&T customers, perhaps, but this strategy can’t work for Sprint in the long term.
As an AT&T customer, I am concerned about my ability to monitor my own usage. After all, how much bandwidth am I using letting my two-year-old daughter watch an Elmo video on YouTube over and over again? With the new tiered pricing plans, AT&T claims things won’t change much for the vast majority of its customers. AT&T has put measures in place to deliver advance notifications to a subscriber when they are nearing the cap of their particular tier. At some point in the future, perhaps this notification will also include a prompt that says, “You are nearing your data usage limits, but if you’d like to upgrade to the next service level, click yes,” which offers enhanced service options for subscribers and additional revenue opportunities for the operator.
On the plus side, maybe this moves brings us a fraction closer to capabilities we have been talking about for years—the ability to control and manage services in real-time. It gives subscribers access to the applications and services they want and operators the opportunity to become more than just a delivery mechanism for services like YouTube, Facebook and others.
If AT&T’s exclusivity contract with Apple ends in 2012, as some have speculated, other operators will soon get the chance to do more or do better. Until then, AT&T will continue to navigate unchartered territory and be the test case for all to evaluate.
If you are an AT&T customer, how do you feel about the pricing structure?

