Sunday, June 13, 2010

AT&T's new networking plan

AT&T terminated its $30/mo unlimited networking plan last week. Verizon unveiled its iPhone supply, also in last week. Although rumors about Verizon's iPhone is inferior to AT&T's version, it makes sense given the good relationship so that AT&T still has an edge in terms of devices. However, the termination of unlimited networking plan seems de-leverage the advantage.

Burden on AT&T's network is the main cause of the move. It is unclear others would follow. In fact, if no one follows the move, that would make AT&T's plan less marketable. Therefore, it is a good time for others, including Verizon to further gain market share (Verizon is the number one in number of users. Of course, technical obstacles are the same or similar among all carriers. . But at least the others know the aftermath of such plans so that they are more prepared. Ways like pricing and account level but still unlimited networking plan are more marketable.

In short, AT&T made a bad move but it might be inevitable for them.

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