What the iPad Tells Us About Mobile Broadband Pricing


Source: GigaOm

No matter what you think of the newly launched Apple iPad, it confirms a shift in the way mobile broadband services are priced, albeit a subtle one.

AT&T thinks the iPad data pricing continues a pattern of pricing mobile broadband based on the device. Much like prices are different for data via a data card or dongle based on the expected usage pattern, the data plan on the iPad is less because AT&T hopes a "substantial" amount of the web surfing will occur over the Wi-Fi network. If it turns out that isn't the case, then AT&T will re-evaluate the pricing plans. AT&T does expect the iPad data consumption to fall somewhere between that of an iPhone and a laptop. Plus the fact that AT&T isn't subsidizing the iPad — and doesn't have subscriber billing and other costs associated with it — means the carrier isn't terribly concerned about the iPad's effect on its margins.

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