AT&T hasn't been doing well lately. This is NOT going to help.
Tiered AT&T pricing to target heavy data usage | Signal Strength - CNET News
AT&T wants its iPhone users to use less wireless data, and it plans to introduce new pricing models to curb users' data usage as it tries to keep up with growing demand.So why do they advertise all that you can do on an iPhone when they can't handle it? In reality, the iPhone for AT&T has been a mix blessing. Of course they wanted new subscribers, but they can't handle them.
At an investor conference in New York on Wednesday, Ralph de la Vega, AT&T's head of wireless, announced that the wireless operator plans to introduce new pricing for heavy wireless-data users.
iPhone users on average consume five to seven times more data per month than average wireless subscribers, according to analyst firm Sanford Bernstein. And all this usage is clogging the network, causing many iPhone users, especially in large cities such as New York and San Francisco, to experience dropped calls, slow 3G service, and issues connecting to the network at all.
AT&T has been reluctant to admit that there is a problem, but recently, the company has acknowledged that problems exist. According to The Wall Street Journal, de la Vega admitted that New York and San Francisco have been experiencing service issues. And the company recently launched an iPhone application that allows users to report service problems.
AT&T has been upgrading its network to the next generation of 3G wireless service to increase network capacity. But now the company is saying it needs to actually curb usage in order to get a handle on demand.
I'm guessing when the iPhone is no longer exclusive to AT&T, a lot of folks are going to bolt. That would automatically help alleviate AT&T's network. Will Verizon encounter the same problems? Who knows, but I'll have to stick with AT&T since I signed a contract.