Some of the people who are defending AT&T on this thread are making the case that AT&T's network can't really support 2 GB/month if everyone was actually using that and perhaps, more to the point, that AT&T can't reasonably supply 2GB/month to everyone for $25. Maybe that's true; maybe it's not. But let's just assume it is.
If that's true, I think what most of us want is for AT&T to stop ***** around with these limits that aren't really limits. Charge us a fair price and be done with it. I don't begrudge them a profit, but at least be transparent about what you're charging and why you're charging it. It's totally ridiculous for them to put these limits in place and then turn around and say, "Well, we didn't actually expect you use the data bandwidth that we told you were were selling you." OK. Fine. Well, then tell us what the actual limits are.
This tethering BS is just a way of letting them advertise one limit and effectively enforce another since it's basically impossible to use up 2GB/month on just your phone.
That is what they did before with the $30 fee for unlimited. What that meant is people who used 50 megs a month paid $30 and people who used 10 gigs a month paid $30 a month.
They know with tethering that usage is going to increase substantially, so unless they want to significantly reduce their profitability they have to raise the price for service.
So they could just follow the previous example, and spread it out to everyone, but that would still mean the price would have to up. They are not going to take a substantial increase in expenses with no revenue to offset it for no reason. They are in business to make money.
3) 2GB of data + tethering for $25 a month???
Not an option. Tethering will significantly increase the amount of data used per customer. If AT&T were a non profit charity, maybe that would make sense, but you want them to take on a very large increase of expense without raising prices. That would not be a smart business move for them as there is no market pressure that makes that necessary. So being reasonable that option was never on the table. They know costs were going to go up substantially, so the task they had was to determine how they would collect the revenue to make money and cover the new increased costs.
I could maybe understand +$5 a month. +$20 is insane.
Except the cost for tethered users is likely a lot more. Probably some multiple of normal usage. So they make it $40 a month for 2 gigs and charge $5 for tethering, would you be okay with that?
If this is the way they look at this, then they need to come right out and say it. "It's an extra $20 a month because we feel you will use more of your 2GB pre-paid data than the normal person's very same 2GB pre-paid data that doesn't tether. Thanks for being a loyal customer."
Kind of wordy and confusing no? Why not just charge $20 more for tethering so people who use the extra data just pay for it.
3) 2 gigs of data for $25 a month (including tethering)
4) unlimited data for $30 a month (including tethering)
Neither one of those are valid options. I guess you don't own your own business, but taking on significant cost increases with no additional revenue for no reason is always bad business.
Costs for them are going to go up substantially for them, so just adding it for free to existing plans was never an option for them.
I'd sign up for 2 more years for option 4 and a new iPhone. $20 extra for tethering with no extra data allowance is a rip-off, you can tell your managers at AT$T that. Anything else, and I hang on to my old iPhone and bask in the glory of no ETFs while I look for a new provider.
Oh wow great. You would sign up for option #4 and use more bandwidth than you pay for.. AT&T is going to really miss you. That is the point they won't miss you. They will replace you with 10 people who will pay significantly more for the same amount of data.
You want more for less, when you already were getting more for less to begin with... Could be considered a bit greedy no? You were already getting an awesome deal on data compared to most people, and now you want them to make the deal even better for you so you pay less per data used.
So if AT&T does that, they either take MORE money from me to support your plan, or they charge everyone more, or they charge you more, or they show you the door.
I don't care which they pick except for the first one.
Guess what, I only use 300 or so MB a month. Point is, I really don't know what I'll use a year from now, and I happily pay $30 / month for not having to worry about it.
It is irrational for people to pay $5-$15 a month more worried about what might happen a year or two from now. Nobody knows what is going to happen in that time frame. People who use 300 megs a month for the next 12 months all of sudden feel they are going to need 5 gigs a month, so they are willing to pay an extra $60 to protect that. Do it if you want, I don't care, but it is an irrational fear.
I understand it, but it doesn't make it rational.
So... that "2GB" plan is really only inteded to be what... a 500MB plan? How much sense does that make? That is like putting extra Spam in the can, and telling you that you really are only supposed to eat half of it. I paid for the Spam. If I want to eat it all, regardless of whether I use a fork, spoon, or my fingers, it should not have a penalty.
No it is not like that at all. A lot of services are priced based upon how often the average consumer users it as opposed to guaranteeing service for every user to use it at max. If AT&T guaranteed every user could use 2 gigs every month in data, they would have to charge $85 a month for service. They are able to charge significantly less because of how much data the average user uses.
AT&T needs to price their plans in such a way that they are not harmed by people using the service. You cant tell someone that they bought 2GB, and in the next breath tell them that, if they use more than the average, you will raise the rates on them. What sense does that make?
That is what they have done. If everyone uses more data, prices will go up. Why is that hard to understand?
I follow you, but I am not sure how you get there. So what if I wanted to use all that data strictly on my iPhone? Should I also pay more? Why do you care what device uses the data? If I choose to stream raunchy dwarf porn 24/7 because I have (according to AT&T) PAID for the bandwidth, it really shouldnt matter to you if it is on an iPhone, iPad, or a Commodore 64. If the intention is to have customers only use 500MB, then that is the plan they should sell, and let the market decide.
What any individual chooses to do is entirely irrelevant and has nothing to do with how they set their pricing.
And nobody exceeded their purchased allotment of data that they paid for and AT&T said was available for their use, we need to realize that... okay on with the example...
Obviously not an option, this is a for-profit corporation.
An option. It would be a more HONEST approach to this situation. The issue isnt the act of tethering... it is the faulty logic on AT&T's part that a 2GB plan should be priced assuming customers only use 10% of their available bandwidth.
It is not faulty. What experience do you have pricing such services? I have a lot of experience. It is how it is done, lots of businesses price services based on average usage. Net Flix sets their rates for different disc plans based on average usage, not on how much it would cost them to supply everyone 45 discs a month on a 3 disc plan.
Again, if AT&T charged what it would cost for guaranteed service, the price would be at least $85 a month. All internet access is handled this way, most internet pipes are priced this way, most web servers and web hosts are this way. All kinds of businesses use this to set their prices. It allows companies to provide more affordable access.
You don't want a world where you get charged for full guaranteed access for most of this stuff. Everything would multiply in price overnight.
Which essentially, by your reasoning, tells people that they REALLY dont have 2GB of usage. The whole nut revolves around what you are entitled to use under this data plan. Is it 200MB (the average that AT&T apparently uses in figuring billing rates)? Is it the 2GB that you are ACTUALLY paying for? What the hell am I buying? Let's get them to be honest for once.
Nope you do have 2 gigs of usage feel free to use it. You are paying for 2 gigs of access.
AT&T is setting their rates based on how much data the AVERAGE customer uses.
If every single customer started using their full 2 gigs every month, AT&T would raise their prices to much higher rates than $25.
Depends on who you are as the customer... people who want to use the bandwidth they paid for (according to Apple) get penalized $20 to do so.
Nope people who want to use tethering are paying more. Anyone who is tethering are going to be using more data than they would without tethering. Why should people without tethering have to pay for people who want to tether. That seems unfair.
It is real simple that the average cost per customer goes up substantially with tethering. So if the average cost goes up, AT&T is going to raise prices.
I would add a #4 to the mix, and that is to charge per usage. So if $25 represents 2GB of usage, and $15 represents 200MB of usage (talk about getting screwed... get 90% less, and pay per unit 500% more),
Yeah poor people. They use 50 megs a month and went from paying $30 a month for 50 megs, to potentially having to pay $38 a month if some of you had their way, and instead pay $15 a month, all for the same amount of data. Yeah those poor people are being screwed. Instead of getting an $8 rate increase they got a $15 rate decrease. Sounds Awesome to me to be honest.