Can AT&T Tame the iHogs?

With the smartphone fast replacing the PC as the center of many consumers' digital lives, changes in the way people use mobile computing are inevitable. Analysts and other experts say wireless operators need to train American consumers that bandwidth isn't unlimited. That won't just be good for phone companies; it'll be good for virtually all mobile phone users. Today, AT&T says 3% of iPhone users account for 40% of the traffic on its data network. The other 97% may get better, cheaper service if YouTube video and online radio addicts paid more for the network upgrades required to support their habits. "It's not a question of if this changes, it's a question of when," says analyst Charles S. Golvin of Forrester Research. The moment may be upon us. In an interview, AT&T Mobility President Ralph de la Vega says the carrier is mulling changes to the $30-a-month unlimited data plan that most of the company's smartphone customers use. He emphasizes that no final decisions have been made, but AT&T could institute tiered pricing models similar to today's voice plans or caps on the amount of bandwidth a consumer could use before getting bumped to a slower, cheaper network. "Carriers need to end up with a sustainable model," says de la Vega.