by Marty
So I was breezing through a piece on the NY Times this morning that caused a visceral type reaction. The article's premise mentions that video is surpassing illegal file sharing. Joyous. The second part of the piece talks about unlimited data plans and why prices are going to go up. I'm tired of dumb mobile companies.
Several executives from telecommunications companies argued that
that this surge in data use, and the disproportionate nature of who
uses it, would require an end to plans that offer unlimited data use.
“We have light users subsidizing heavy users,” said Maggie
Wilderotter, the chief executive of Frontier Communications, a regional
phone company. “We have to move to a model of consumption-based
pricing.”
In an interview after her talk, Ms. Wilderotter said Frontier was
going to start displaying to customers a gauge that shows how much
bandwidth they are using. Then it will start imposing an additional fee
for customers who use more than 5 gigabytes of data a month.
T-Mobile’s wireless operation in the United States is looking to do the same thing, said Mr. Mallahan.
“It’s crazy,” he said. “People who want moderate usage have to pay way too high prices.”
Right now he said, wireless carriers don’t really offer truly
unlimited plans because they cancel the accounts of the very heaviest
users.
“Every one of the wireless carriers fires high-use data customers,”
Mr. Mallahan said. He suggested that wireless data services offer a
certain amount of bandwidth, with a “moderate” charge for additional
use.
I see this and just shake my head. First because of the lack of transparency for phone companies and unlimited data plans. Second wireless companies epitomize the word stupid to me. Let me give you some examples why.
- FAIL 1. The phone companies charge MORE to people that want to offload the phone company traffic onto IP based (instead of wireless-based networks). I have a friend that has bad reception in his condo. What did they tell him to do, pay an extra $10 a month to use his IP based phone network for better reception. What other businesses can say, hey, don't use my resources, I'm going to charge you more and you'll be happier. Mobile companies should give this away to every person imaginable and spend more money with phone companies switching between 802.x based networks. Instead they spent their time writing doctrines on how to create hardware, while Apple and Google said, here's the hardware AND software. People will buy it.
- Fail 2.The biggest, I mean BIGGEST, source of revenue for wireless carriers has been sitting under their noses for quite some time. Data. Wireless carriers should have given away the services to uses as data plans, subsidizing the service with ad revenue. Create your new network with the ad revenue and allow consumers to opt out of the free ad sponsored data service with an upcharge, say $10 per month. Instead, the dumb wireless carriers have running around trying to figure out a publishing model as an advertiser to pimp out their user base, at the expense of their user base for some companies (Sprint?).
- Fail 3. It should not have taken 20-years to figure out the value of a standardized platform, whether on hardware or a network. Is Google that smart? Maybe so. While Nokia is struggling and their profits are plunging, the G-phone is pumping out more applications by the minutes by distributing the ability for people to create and disseminate applications through their store. It's about the applications. Not your damn handset.
My recommendation to the average consumer that wants to use a lot of data? Be sure to purchase a phone, like the Google phone that uses a 802.x networks for data and switches elegantly. Save your dough. Don't give it to the dumb phone companies. Thankfully most of the better phones that are designed to have data use on them do this pretty well.
Quick follow up: In my previous post, I commented that everyone compares the iPhone and Google Phone, but that's the wrong comparison for folks to make. My co-blogger Jason pointed out the question I did not answer (great feedback Jason), "so what is the right comparison?" For Google, it's every medium that informs. Meaning every medium that performs searches. Your home telephone, your Wii, your phone, your desktop computer, your car's GPS, etc.
PS- Thank you, thank you typepad. I'm far too lazy to move this blog over to my own hosting service. This editor is much better.