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  1.    #1  
    Check this out:
    AT&T may have to limit iPhone users
    Customers use their iPhones too much and have caused network problems in markets where their popularity is huge.
    Posted by Charley Blaine on Wednesday, December 9, 2009 7:58 PM Found on MSN Home Page

    OK, you truly wild and crazy iPhone users.

    You know who you are: the ones who check out every application, play every game, call up every piece of news and check out every restaurant within 100 miles.

    You are causing AT&T (T) a big problem. You're swamping the system, and AT&T, which has an exclusive right to market the iPhone in the United States, wants you to get a life and dial back.

    How AT&T plans to get you to cut back isn't quite clear, The Wall Street Journal said today. But they won't slap you around. They'll offer incentives.

    AT&T's problem is a problem for everyone in the wireless industry: how to cope with exponential growth in the use of data services such as video and Internet browsing, which require more bandwidth.

    The dilemma, the Journal noted, has been particularly acute for AT&T because of the millions of customers using Apple's (AAPL) iPhone, the iconic smart phone.

    IPhone users so love their phones that they use them all the time. The problem is especially big in New York and San Francisco, two of the trendiest towns around.

    The rate of broken calls and data feeds has grown so fast that Verizon Communications (VZ) has launched an ad campaign to get AT&T customers to switch.

    The average iPhone user consumes five to seven times more data on a monthly basis than an average subscriber who mainly uses a handset for phone calls, research firm Sanford C. Bernstein says.

    Even compared with the average smart-phone user on a high-speed network, iPhone owners use twice the amount of data.

    So, iPhone user, you're too good a customer. And you cause an additional problem.

    AT&T may have to invest more in network investments -- switching gear, cell-phone towers and the like -- because you like your iPhone so much. That may eat into AT&T's bottom line.

    Result, Toni Sacconaghi, a Bernstein analyst, told the Journal: "The economics of the iPhone are not as rosy as they might first appear."

    So, what incentives might AT&T offer? Sorry, they won't pay you not to use your phone.

    But the options include instituting usage fees that charge customers based on how much data flow through the device.

    Right now, you can get a calling plan from $40 to $100 a month for an iPhone -- plus $30 a month for unlimited data. The average iPhone users pays $95 a month for the service.

    The telecom giant could also charge $5 to $20 a month for the right to send text messages.

    It could -- gasp! -- slow down the data flowing to your iPhone if your usage is hurting other customers.

    AT&T has tried reasoning, the Journal said. They've showed some users just how much data they use. Ralph de la Vega, who runs AT&T's wireless and consumer businesses, told the paper that most had no idea and cut back on their own.

    The next question is whether AT&T will have to make an offer the iPhone user can't refuse.
  2. #2  
    im glad sprint is doing well with their service .....thank God!!!
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  3. #3  
    Sorry but as much as I hate AT&T and the iPhone, they have no choice in this instance.

    Their CEO said that 3% of their users are using 40% of the bandwidth. That's insane. They have to do something. And unlike Sprint, who would just send those 3% a nice letter explaining that their service is being terminated, AT&T is going to add a surcharge to these "power" users.

    I think AT&T is doing the right thing, and the only thing that bothers me about this whole thing is: What if those 3% get fed up, switch to Sprint, and ruin our network?
    Treo 300 > Hitachi G1000 > PPC-6700 > PPC-6800 (Mogul) > PPC-6850 (Touch Pro) > Palm Pre & HTC EVO Optimus V
  4. phynal's Avatar
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    #4  
    Quote Originally Posted by dallashigh View Post

    I think AT&T is doing the right thing, and the only thing that bothers me about this whole thing is: What if those 3% get fed up, switch to Sprint, and ruin our network?
    +1

    Man that would suck really bad....don't think it will happen, but it would suck lol.
  5. #5  
    As long as the other carriers (I'm talking to you, Sprint!) don't follow suit.
    Everything's Amazing and Nobody's Happy

    Treo600 --> Treo650-->PPC6700-->Treo700P-->Treo755P-->Treo800W --> Touch Pro-->Palm Pre --> EVO 4G
  6. #6  
    Quote Originally Posted by dallashigh View Post
    Sorry but as much as I hate AT&T and the iPhone, they have no choice in this instance.

    Their CEO said that 3% of their users are using 40% of the bandwidth. That's insane. They have to do something. And unlike Sprint, who would just send those 3% a nice letter explaining that their service is being terminated, AT&T is going to add a surcharge to these "power" users.

    I think AT&T is doing the right thing, and the only thing that bothers me about this whole thing is: What if those 3% get fed up, switch to Sprint, and ruin our network?
    I don't agree. Those 'unlimited plans' are not unlimited. They have a 5 gig limit per month. Same with every phone carrier. It's what's agreed upon when you sign the contract. Your network should be able to handle the bandwidth if that's what you're offering to your users. The only reason they are trying to kill these 3% is so that they can improve their network without actually having to spend any real money improving their infrastructure.
  7. #7  
    oh and also I'd want to know what percentage of AT&T users are iPhone users. If it's 3% I'll just die laughing.
  8. #8  
    Ok so this is kind of stupid and i really don't understand why you guys all buy in to this lol =_=;

    To start off with Data works the same as Voice..

    Phone companies already charge far to much for these services, technicaly we should be paying what we pay for with our home phone lines

    AT&T have obviously made a huge profit from selling the iPhone exclusively, its just rediculas to complain that they have to upgrade there own equipment to handle it?

    And to start talking as if a user should care that they are using to much lol?
    The user has signed up with a plan and contract which AT&T has set and decided on, and in the full scope of thing it is the user is who is getting screwed in every contract =P
  9. #9  
    This is the same bandwidth hog stories you hear from ISP's. They will only use this to get everyone on a per mb/month rate and we will all pay more. Some people are even asking to see these "hogs" to see if it is indeed a true story or made up to jack up prices.
  10. #10  
    This is bull from AT&T. They invited all this traffic, now they can't handle it and want to make the customer pay more for something they're ALREADY SUPPOSED TO BE GETTING in the included price?? They need to use some of those huge profits to upgrade the network!! And also quit telling people their already high priced data plan is "unlimited" if it truly isn't.

    No they ARE NOT doing the right thing. They are dodging the issue that they oversold their network, by trying to pass it off on the consumer. It's not the consumer's fault that "unlimited" should mean "unlimited".
    HP has officially ruined it's own platform and kicked webOS loyalists and early TouchPad adopters to the curb. You think after you drop it like a hot potato and mention it made no money and is costing you money, anyone else wants it??? Way to go HP!!

    And some people are fools to keep believing their hype. HP has shown they will throw webOS under the bus and people are still having faith in them??? News flash: if it's own company won't stand behind it, it's finished!
  11.    #11  
    This is exactly why i posted this...welcome to the future of cell phone price increases.
  12. #12  
    I don't understand. They already have a 5 GB cap in place. Over the course of a month that averages out to 165 MB a day, which really isn't a whole lot.
    Palm Vx -> Treo 600 -> Treo 700p -> Centro -> Pre (Launch Phone 06/06/09) -> AT&T Pre Plus with Sprint EVDO swap -> Samsung Epic 4G w/ Froyo
  13. #13  
    The 5gig cap has been beaten to death on the forums. It seems though, at least for Verizon, umlimited data means just that unlimited (as long as it's being used on the phone only). The 5 gig cap is only for tethering and for those using cellular modems. This has been verified by several Verizon reps. Still shady though as it's all in the 'fine' print. And that may all change when the avalanche of Android phones hit their network.


    As for At&t and the other carriers touting unlimited usage when it's truly not, it's BS IMO.
    The customer should not have to sift through the fine print to find the truth. It should be told (or presented in bold) right up front so there's no misunderstanding. This is almost tantamount to false advertising. And I gree with the person above who said At&t would rather save their bottom line than invest in their network. It's all about bending the consumer over but I'm not tooooo unhappy considering they're going to start with the iPhone users, lol.
    Sony Clie --> Tungsten t2 --> iPhone3g --> Palm Pre --> Droid
  14. #14  
    Let's say they do try to start with iPhone or even smartphone users period. Suddenly changing contracts could result in customers crying foul over what they signed up for and AT&T now jacking up the prices, and possible defections to other networks. Not to mention even more bad press. Consumer Reports now has them listed as the worst carrier. I think AT&T had better reconsider.
    HP has officially ruined it's own platform and kicked webOS loyalists and early TouchPad adopters to the curb. You think after you drop it like a hot potato and mention it made no money and is costing you money, anyone else wants it??? Way to go HP!!

    And some people are fools to keep believing their hype. HP has shown they will throw webOS under the bus and people are still having faith in them??? News flash: if it's own company won't stand behind it, it's finished!
  15. #15  
    look at how many iphones have been purchased to run on at&t's network, times that by 30 bucks a month a phone since 2007 how can they not afford to upgrade thier network, give me a break, also if you have an iphone you pretty much have unlimited texting so thats another twenty per phone.
    i1000+ -> i90 -> i530 -> i730 -> i530 -> i730 -> i560 -> i930 -> i215 -> i860 -> i930 -> i860 -> i870 -> i880 -> i870 -> i850 -> i870 -> i830 -> i9 -> Pre
  16. chino0131's Avatar
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    #16  
    Quote Originally Posted by The Phone Diva View Post
    This is bull from AT&T. They invited all this traffic, now they can't handle it and want to make the customer pay more for something they're ALREADY SUPPOSED TO BE GETTING in the included price?? They need to use some of those huge profits to upgrade the network!! And also quit telling people their already high priced data plan is "unlimited" if it truly isn't.

    No they ARE NOT doing the right thing. They are dodging the issue that they oversold their network, by trying to pass it off on the consumer. It's not the consumer's fault that "unlimited" should mean "unlimited".
    Agreed. I paid more for my iphone plan than my company pays for my Pre plan, and I have more features and the same service with Sprint (my experience before anyone says thats not true). Personally, I just dropped my iphone and ATT. Decent phone with some problems I could deal with ( just like with my Pre), but the lack of constant horrible customer service and ATT's constant was too much. I hope everyone that owns an iphone has better luck than I did with customer service and retention.
  17. #17  
    So what is the problem? AT&T promised something they can't deliver? Come on Freaking AT&T, it shouldn't matter how much any phone is using your bandwidth, as long as they stay below their mythical 5GB cap limit your network should cover it, if they can't FIX IT! The dang iphone has been exclusive to you, your bending iphone customers over with the rates you charge. Use that money to fix your network, or better yet, Apples End exclusivity and let every carrier get one to lighten the load on AT&T.
  18. #18  
    Quote Originally Posted by dallashigh View Post
    And unlike Sprint, who would just send those 3% a nice letter explaining that their service is being terminated, AT&T is going to add a surcharge to these "power" users.
    Sorry, had to call BS on this. Show me someone who got such a letter that wasn't tethering their phone.

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