Originally published: January 7, 2010
Last updated: January 7, 2010 - 9:33pm
This year may well be the year that wireless operators adopt usage-based pricing models for their heavy-volume mobile data users, according to analyst firm Deloitte. With smartphone traffic eating up increasing amounts of data capacity and a small percentage of those users hogging the largest percentage of that bandwidth, carriers have little choice but to abandon their all-you-can-eat smartphone data plans and implement pricing models more equitable to all of their customers, said Phil Asmundson, Deloitte vice chairman and leader of the firm's US technology, media and telecommunications group. "If you look at what's happening today, they're being forced by necessity to adopt usage-based models," Asmundson said. "All-you-can-eat business models depend on your ability to predict how much data your customers will consume. The iPhone has proven that you can't make those kind of predictions." Due to that lack of predictability, operators are witnessing their data traffic increase at far faster rates than their revenues, but the balance is highly skewed toward high-volume users who not only are using more than their 'fair' share of capacity and limited network resources but are degrading the user experience for all customers, Asmundson said.
- Is usage-based pricing inevitable?
- Data caps aren't perfect, but that's OK
- Usage-based pricing gets FCC support
- Data by the Bucket
- Usage-Based Pricing Plans Are Essential to Bridging the Digital Divide
- Cable Trouble for Netflix
- Rep Eshoo Seeks GAO Study of Usage-Based Pricing
- AT&T Wireless Shift Promises Boon to Cable
- AT&T moves closer to usage-based fees for data
- Usage-Based Broadband Billing vs "Channels"
- Usage-Based vs. Unlimited: Which Mobile Broadband Pricing Plan Will Prevail?
- Broadband Usage Pricing: Let It Flourish
- Internet Pricing: The Next Policy Frontier
- Pay-per-use pricing not the mobile-data solution
- Rep Massa Files Bill to Stop Tiered Broadband Pricing