AT&T Looks to Curb Heavy Data Usage

Wall Street Journal ^ | 12/9/09 | By ROGER CHENG

[BurbankKarl]

AT&T Inc. plans to take steps toward curtailing excessive data usage by some iPhone customers as it battles growth in both wireless traffic and perceptions of network problems.

Ralph de la Vega, who run's AT&T's wireless and consumer businesses, said Wednesday the company will introduce "incentives" to encourage customers to cut back on their data usage.

Mr. de la Vega said AT&T's strategy wasn't set yet, but said the incentives wouldn't affect the majority of AT&T's subscribers. He said details will likely be available early next year.

The wireless industry has been wrestling with the exponentially growing use of data services such as video and Internet browsing, which require more bandwidth. The dilemma has been particularly acute for AT&T because of the millions of customers using Apple Inc.'s smart phone.

--

According to Sanford C. Bernstein, the average iPhone user consumes five to seven times more data on a monthly basis than an average subscriber who mainly uses their phone for phone calls. Even compared with the average smart-phone user on a high-speed network, iPhone owners use twice the amount of data.

[BurbankKarl]

ping

[mnehring]

bfltr

[St. Louis Conservative]

Net Neutrality could throw a wrench into AT&T’s plans to expand their network.

[MikeWUSAF]

The solution: Verizon

[BP2]

Now that's just stupid.

"We have the best 3G network out there ... but we'll pay you NOT to use it."

[VastRWCon]

Thanks for the info....

WTF??? I just bought 2 IPHONES for data use first, phone calls second... 2 new 2 year contracts.... unlimited data usage... I’ll SUE, I tell ya I’ll SUE, AT&T byte me!

[BurbankKarl]

Luke Wilson, “There’s an app for that...just no bandwidth!”

[IllumiNaughtyByNature]

yup.

[Arkinsaw]

1) You have an exclusive deal with the primary data phone.
2) You sell an unlimited data plan.
3) The company that makes the phone is pushing out hundreds of thousands of applications for the phone and wants to sell more and more of them
4) The company making the phone also wants their phone to be known as the coolest, which means more video, radio station streaming, etc.
5) Your competitors are pushing that they have more data availability in more places


The best thing for AT&T to do is get busy expanding their network.

The next best thing for AT&T to do is return to the dowload model for music and movies instead of streaming. This will irritate the RIAA. It makes no sense to download the same song over your network over and over again when you can dowload it once and replay it multiple times.

Jacking up their prices is just going to drive more people to the Androids.

[MikeWUSAF]

My wife and I can be out in really remote areas and people will comment, “you have cell service?” Yes, it’s called Verizon. When I want to use my cell phone I expect it to work.

[Star Traveler]

According to Sanford C. Bernstein, the average iPhone user consumes five to seven times more data on a monthly basis than an average subscriber who mainly uses their phone for phone calls. Even compared with the average smart-phone user on a high-speed network, iPhone owners use twice the amount of data.

You gotta laugh if you're an iPhone user. We know why that's so...

It's because the iPhone is designed to be usable by the user, and it has a real web browser and it has many features that get information or connect by the Internet. It's like having a small computer connected to the Internet in your pocket.

Of course the iPhone users are going to use more Internet services, because that's what it's all about for the iPhone. :-)

[Star Traveler]

Some previous Apple articles posted on Free Republic...
at least by Star Traveler

• Who Can Kill the iPhone?
• Apple's iTunes overtakes Amazon in overall music sales
• Apple iPhone expected to drive mobile phone industry toward fancier touch screens
• Apple devotees rush stores for iPhone
• Mac users 'ecstatic' about new Apple Store
• Jobs Is Back, Apple's Still Standing, Life Goes On
• Out with Treos, in with iPhones
• Letters from Microsoft: An Employee Tosses His Zune
• Apple's 99-Cent Apps Are Too Cheap, Microsoft Says
• ONE IN FOUR SONGS IN U.S. BOUGHT ON iTUNES
• "APPLE HAS CHANGED THE WAY THE GAME IS PLAYED", says MSFT Win Mob chief
• iPhones Cause People To Talk Less
• GROKLAW’S EXCELLENT TAKE ON THE RECENT PSYSTAR SHENANIGANS (Apple Computer)
• PSYSTAR HIT WITH $5K FINE FOR DISCOVERY ABUSE (Apple Computer)
• INTEGO SPOTS MALWARE BLOCKER IN SNOW LEOPARD (Apple Mac OS X)
• Parallels to make switching to the Mac easier, safe and painless
• THE IPHONE & STEVE BALLMER: IT’S TIME FOR HIM TO EAT SOME SERIOUS CROW
• An in-depth look at Psystar’s legal defeat at the hands of Apple
• Has Palm finally given up on the great cat/mouse/iTunes chase of ‘09?
• Jobs’ Personal, Terse Reply to Developer [Apple Computer]
• Android goes for iPhone weak spot: porn apps [Porn is iPhone Killer?]
• Mac sales projected to grow 26% in 2010, outpacing PC market
• Apple's iPhone On Its Way To Becoming The Microsoft Windows Of Mobile
• Is Apple the Mobile Walmart?
• Apple's Base Stations Have Three 802.11n Streams [Faster WiFi on Apple]
• Analysis: Apple Embraces The Cloud, Positions Mobile With Lala Deal [Extends iTunes]
• Forget The iPhone: The iPod touch Is Where It’s At
• >All Hail the iPod touch
• Apple Bans Another Developer, 1000+ Apps Pulled [Developer scamming reviews]
• Lala purchase may hint at the coming of the rumored iTunes Replay service
• Dragon Dictation comes to the iPhone. Wow. [iPhone Talk-to-text]
• Apple can be copied, but can it be beat?

[IllumiNaughtyByNature]

About that network expansion...They can keep getting the 3G bigger, to catch VZ but they have to start laying the foundation for LTE which they have committed to also. So where to spend the $$ ?? For a while they even considered going after HSDPA+ to chase the WiMax, fake 4G crowd, but IIRC they decided against it and are still deciding on 3G expansion of laying ground for LTE.

The next 6 months will be interesting to see where they go, and what deal they sign with Apple since their exclusive is up this month.

[Star Traveler]

Some more previous Apple articles posted on Free Republic...
these by Swordmaker

• Parallels 5 boasts huge speed improvement
• Bizarre lawsuits connect Apple with Sarah Jessica Parker, Lil' Wayne
• Amid Transition, Rivals Are Descending on Apple
• First iPhone [Jailbroken] worm discovered - ikee changes wallpaper to Rick Astley photo
• Apple releases Mac OS X 10.6.2
• Is Snow Leopard the new Vista?
• Apple tablet could cement Jobs' legacy
• Apple releases Safari 4.0.4 for Mac and Windows
• PEDRAZA VS. MACINTOSH: WORMS IN THE APPLE
• Microsoft Patents Sudo?!!
• Apple Crushes Clone Maker [Psystar] in Court
• Apple Wins Like a Champ - Psystar is Toast -- What? You're Surprised?
• AT&T, Apple Accused in suit of misleading consumers
• Tests: Windows PC "crapware" adds 2 minutes boot time Apps on Win 7 PCs still slow vs Apple
• iPhone owners demand to see Apple source code
• Apple Set to Propose Damages in Psystar Case
• Another iPhone worm, but this one is serious
• Apple Moves for Permanent Injunction in Psystar Case
• Nearly half the money spent at US retail on desktop PCs goes to Apple
• Failure to launch: Would-be ‘Mac cloner’ Psystar sold just 768 PCs with Apple’s Mac OS X installed
• The Apple Tax Revisited
• Apple moves to kill second Psystar lawsuit
• Psystar, Apple enter partial settlement to cease clone Mac sales
• Psystar agrees to pay Apple $2.7M in settlement
• The great iPhone death watch
• Apple releases Java for Mac OS X 10.6 and 10.5 updates
• Apple Told To Pay Patent Troll OPTi $21.7 Million (AAPL)
• Verizon Droid ad calls Apple iPhone "tiara-wearing digitally clueless pageant queen"
• Attention Apple legal: Kuhgar tries selling Dell Mini 10v preloaded with Mac OS X Snow Leopard
• The Causality Behind Apple's Success
• Windows 7 Family Pack Dissapears For the Holidays
• Apple sued for infringing digital camera patent with iPhone
• Apple and Google and Microsoft sued over icon issue
• Danish Police Department depending on Macs to manage the Environmental Conference
• VisiCalc creator Dan Bricklin: From killer app to iPhone app
• Google releases Google Chrome for Mac beta
• Apple releases FOUR updates... time to see if your Mac is included by clicking on Software Update
• Apple Argues to Include Rebel EFI in Psystar Injunction
• THE MURDER OF MY NEW COMPUTER
• Two cool iPhone apps: one you want, one you need

[jiggyboy]

the company will introduce "incentives" to encourage customers to cut back on their data usage

"incentives" = "surcharges". AT&T also announced that it will be increasing the chocolate ration to 20 grams.

[homegroan]

“....and perceptions of network problems”.

Huh?

I have AT&T and my phone no longer works in my house unless I’m near a window in my office.

Not my perception...it’s lack of reception-
and that’s a fact.

Dumping them in January-can’t wait!

[rwfromkansas]

Edge is technically faster than 3G on Verizon AT&T claims.

The problem is, my Verizon 3G got speeds faster than my cable internet.

Much faster than AT&T claims Verizon 3G is, so I seriously doubt it.

At least in my experience, Verizon is better and the map is accurate. The map AT&T is touting is NOT 3G coverage or even just Edge and 3G, but rather voice as well.

It’s completely deceptive.

And now they want to curb data usage instead of fixing their network?

Honestly, I have seen comments on other sites about this announement, and people are pissed. I have rarely seen so many people angry about anything and wanting to drop their iPhone to switch to Verizon. AT&T has a serious problem.

[bert]

There was a great piece in Forbes describing the killer ap.

When folks get internet phone they can make internet calls on their handhelds and eliminate the need for cell

[rwfromkansas]

Only once did AT&T have service when I didn’t, the Frio River of south-central Texas. Otherwise, we will go around and have service when my wife’s parents on AT&T won’t.

[AFreeBird]

The thing is; the vast majority of my iPhone data usage is via wifi connections. Like I’m using on my iPhone now. I love the seemlessness of the iPhone’s usage of approved wifi networks.

This sounds like a pre-emptive strike on backing off tethering.

[rwfromkansas]

And of course they count Edge as 3G, when it is really just 2.5G.

Their 3G is even less.

[KarlInOhio]

According to Sanford C. Bernstein, the average iPhone user consumes five to seven times more data on a monthly basis than an average subscriber who mainly uses their phone for phone calls. Even compared with the average smart-phone user on a high-speed network, iPhone owners use twice the amount of data.

American Telephone and Telegraph complains that people with telephones use more bandwidth than those using a telegraph key.

–·· ··– ····

[rwfromkansas]

Backing off tethering would be a killer issue for them.

They let people use aircards, yet no tethering?

[billorites]

Forget the iPhone.
I'm going to stick with my Kaypro.

Chick magnet.

Well, at one time...

[VastRWCon]

The better not back off on tethering... I’ll jailbreak, unlock, switch carriers, and TAKE THE CANCEL contract FEE no problem at all. FUBO them!

[Dallas59]

My "smart" phone. Nokia 9500 Communicator. TMobile unlimited internet for 5.49 a month. Plays Youtube, and opens all web pages in Html or Mobile Html.

Old 2005 tech, no touch screen..but I can post from it and surf the web.

[Dallas59]

Has a camera and video recorder too.

[Force of Truth]

???? Sounds pretty stupid if you ask me. Not that you were.

[posterchild]

Who sells them the equipment for all HSDPA and the coming LTE? ADCT, TKLC, TLAB, CSCO?

[AFreeBird]

Not saying they are going to that, I’d love to use it too. But I’ll probably have more issues with it than you; I run Linux and only fire up Win7 in a VM to iTunes sync.

But I do suspect that the iPhone took them by surprise from a data useage point of view. If they were smart, they’d be putting money and resources into upgrading the network for the next evolution of the technology, and not worrying so much about VZ’s map.

And I hate VZ, those nickle and dime you to death pukes.

[rwfromkansas]

Also, as to usage caps, there is no sense in having them.

The average user increasingly uses more and more data. By the time that 5G limit or whatever is reached, the average user will exceed it.

It’s capricious and arbitrary.

[Myrddin]

I used an LG enV for 2 years with similar capability to your nokia phone. I just moved to Droid as I want to write apps to run on the device. I've been a Verizon customer for 9 years. The coverage is great. I use a USB720 for my netbook. It allows me to go anywhere in the US and have great internet connectivity. I need that to keep my paycheck coming.

[Myrddin]

My USB720 works well on Windows XP, but there are no drivers for Linux. I don't have time to write the driver, but I did get started on the USB endpoints to the internal Novatel hardware last year. Verizon is now offering a device the size of a pack of cards. It is a 1xEV-DO modem/802.11b/g access point for 5 users. That would be transparent for Windows, Linux or anything that can play with a WiFi router. It would cost me $79 to upgrade. I'm paying for the data plan anyway while I'm out of town. It recharges via a mini USB connector.

[Dallas59]

If I move up to a newer phone they will charge an additional $20 bucks for internet usage. I’ll keep my 9500.

[Myrddin]

The Droid adds $30/month to my bill for e-mail/data. I'm stuck in my company office behind a firewall that denies access to my e-mail. The Droid fixes that. I can deal with the 250+ daily e-mails during the day instead of having to deal with them en mass after work each evening. I can also see the mail in a more timely fashion. That's worth $1/day. The Droid works well on my WiFi networks with full security support. The Bluetooth works flawlessly with my hands free devices. I've put most of my iTunes library on the SD card. That works directly. It supports stereo Bluetooth or a wired headset. The mono speaker works fine too.

[Caipirabob]

Denying me the service I bought will be considered a breech of contract. AT&T can go to hell unless it means HUGH (I’m SERIES) discounts.

[NorthWoody]

Exactly. I had AT&T for 3 years and grew increasingly frustrated with the lack of coverage. If I was in any sizable town or on a main highway I usually could make a call, but if I was anyplace out in the sticks (where I often find myself due to work and where I live) I was out of luck 90% of the time.

My employer provides me with a Verizon phone and the coverage is like night and day. Verizon just works, 99.5% of the time. The only time I have a problem connecting is when I’m down in a steep valley on a dirt road in the backwoods where no other cell phone works either.

I dumped AT&T and got myself a Verizon phone and I couldn’t be happier.

[GatorGirl]

And those contracts are tough to birth when they come out butt-first! ;-P

[Political Junkie Too]

That's exactly what happened to AOL in the 1990's.

-PJ

[Arkinsaw]

Blasphemy. The Osbourne 1 is the real deal.

(seriously wanted an Osbourne once upon a time)

[Arkinsaw]

AT&T network here in Little Rock has been great. No delays, very fast.

I suspect were they are really having issues are the major metro areas.

AT&T is in a hell of a fix. I don't see Apple sticking with them because Apple and AT&T really have different, conflicting, interes. If Apple leaves then AT&T will have to price compete and that may scotch any price increases. It would be hard to compete on less coverage and cost more.

I am hoping that Apple bails and that I benefit. AT&T will have to try to retain me. Competition is good.

Android is going to be a problem for Apple because of its openness....and because of the App Store fascism. Lots of apps are going to get developed for Android that won't show up in the app store. Of course, it will be like the wild west for Android, no telling what sort of problems that is going to cause.

[Arkinsaw]

AT&T network here in Little Rock has been great. No delays, very fast.

I suspect were they are really having issues are the major metro areas.

AT&T is in a hell of a fix. I don't see Apple sticking with them because Apple and AT&T really have different, conflicting, interes. If Apple leaves then AT&T will have to price compete and that may scotch any price increases. It would be hard to compete on less coverage and cost more.

I am hoping that Apple bails and that I benefit. AT&T will have to try to retain me. Competition is good.

Android is going to be a problem for Apple because of its openness....and because of the App Store fascism. Lots of apps are going to get developed for Android that won't show up in the app store. Of course, it will be like the wild west for Android, no telling what sort of problems that is going to cause.

[Doohickey]

Imagine the gall of people who pay for a data plan to have the temerity to actually use it. Scandalous!

[Swordmaker]

And of course they count Edge as 3G, when it is really just 2.5G.

No, AT&T does not count EDGE as 3G... they make no bones about it being EDGE, 2.5G.

[rwfromkansas]

They include it in their 3G maps.

[Swordmaker]

They include it in their 3G maps.

No, they don't.

AT&T Complete Data and Voice Coverage Map Regardless of speed or version

AT&T Detailed Coverage Map
Voice with slower 2.5G (about twice dial-up speeds) in light orange
Voice with the faster 2.75G (about five times dial-up speeds) in darker orange
Voice with fastest 3G coverage in Blue
Green are 3G areas added in the previous 3 months
Map as of September 4, 2009

Care to retract your claims?

[rwfromkansas]

I couldn’t see the second map.

ATT does try to hide their coverage and jump it all into one....they have something to hide from their customers.

Just go to their website’s “coverage viewer.”

To even see a map of their 3G coverage, you have to stay on their “voice” map, which of course is much larger. Even the map name is voice 3g....

http://www.wireless.att.com/coverageviewer/#?type=voice&3g=t&lat=37.709532&lon=-97.343956&sci=2

To get to this, you first have to go through a long list of 3G cities before you can actually pull up a map of the coverage.

Of course, it is extremely sparse when you zoom out from that city and look across the country.

Really the only place where ATT has shown ANY kind of effort at a strong 3G network along the Interstates is in Texas, NY, Florida and California. And in Texas, that only applies to I-35 south of Dallas. And that’s their headquarters!

ATT gives a big middle finger to everybody else unless they live in a top 30 or so city population-wise.

Verizon has a LOT more converage. I looked at Edge speeds, and I don’t see how it is faster than Verizon 3G as ATT claims. My Verizon 3G gets speeds faster than my basic cable modem plan. Edge doesn’t even come close to that.

In addition to 3G, if you look at the map I linked to, ATT has VERY little native voice capability. For example, in my home state of KS, almost all coverage is from a partner carrier or at best moderate coverage. Again, ATT giving the middle finger to anybody outside a major city.

Now, the map does show only 3G, not Edge. So, I retract my statement that ATT counts Edge with their 3G maps.

But, this map isn’t much better for them. Frankly, it still shows ATT trying to be deceptive.

In addition, at least on my computer, when I click the data tab at the top, it first popped up as “nationwide data coverage” and didn’t distinguish between 3G, Edge or whatever. All it had was blanket coverage.

Only if you click on the map does it distinguish the types of data coverage.

[Swordmaker]

I couldn’t see the second map.

I don't understand why you couldn't see the second map... My Mac has no problem displaying it. I will try another approach for you later in this post.

ATT does try to hide their coverage and jump it all into one....they have something to hide from their customers.

No, they DO NOT. They provide a map of where you can get data coverage regardless of the speed... or version. If it matters to you, you can easily find a more detailed map of what kind of coverage that is in each locations.

To even see a map of their 3G coverage, you have to stay on their “voice” map, which of course is much larger. Even the map name is voice 3g....

No, you don't.

Sheesh... Click on the TAB that says "DATA", ZOOM out, and you will see a map that shows the data coverage that is identical to the VOICE map... only now it's blue data coverage. Simple. Here it is.

AT&T US DATA coverage

The point is that DATA is available wherever VOICE is available from AT&T... there isn't a limit on that. It may not be at the same speed everywhere but it is available.

Really the only place where ATT has shown ANY kind of effort at a strong 3G network along the Interstates is in Texas, NY, Florida and California. And in Texas, that only applies to I-35 south of Dallas. And that’s their headquarters!

As I have told you several times the Internet on AT&T was available to me all the way across the continent on the InterStates. AND it was very usable. It was not unusably slow at any time. The five minutes that I did not have a signal were just west of Albuquerque, New Mexico... and it looks as if it still may be a dead zone.

Here is that second map from AT&T again:

Is that better?

[moehoward]

I have an iPhone, but most of my internet and email activity is on my home wifi.

This story is a pisser because you are required to by the data option when you choose the iPhone.