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sarahthomas1011
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sarahthomas1011,
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12/5/2012 | 5:44:34 PM
re: Wi-Fi Usage Drives AT&T to Raise Prices


It's an interesting dynamic for AT&T because they have to encourage Wi-Fi use because their network can't handle all the traffic, but then they lose APRU because of it. And ARPU is such an important metric for them. We'll see what they report in terms of Wi-Fi and APRU tomorrow morning.

sarahthomas1011
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sarahthomas1011,
User Rank: Light Beer
12/5/2012 | 5:44:33 PM
re: Wi-Fi Usage Drives AT&T to Raise Prices


Increasing prices like this already feels like charging extra for Wi-Fi; it's just subtle. I agree that they'll probably do both. And creative pricing is good, but I'm not exactly sure what that would look like - besides tacked-on charges.

ibarrera
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ibarrera,
User Rank: Light Beer
12/5/2012 | 5:44:33 PM
re: Wi-Fi Usage Drives AT&T to Raise Prices


So if it's WiFi usage why driving their prices up, instead of down to get people to use their plans.


The race to increase revenue from quarter to quarter has lead to this new mechanism where ISPs don't offer better services at the same price, but they force customers to move to another plan (a la Netflix), that will bring more money selling untangibles.


Who charges AT&T for ther data? Yet they will probably be forcing people with 200MB plans (which may not need 300MB) to pay $5 more a month. According to my calculations, spreading these plans evenly amonth a month doesn't give you even a net 1kbps service. I remember the times I had a 9.6kbps modem, this is even worse (but they allow the bursts) but people is paying already a lot for the "wireless" advantage.

kaps
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kaps,
User Rank: Light Beer
12/5/2012 | 5:44:33 PM
re: Wi-Fi Usage Drives AT&T to Raise Prices


Sarah I am sure you and I both mentioned this before... the days of free Wi-Fi are probably numbered and it's not a big number. As soon as the roaming/authentication problem becomes less of a problem you can already hear the justification of "it's all one wireless network... and here's your bill for it."


Just like unlimited cell plans, unlimited Wi-Fi is essentially untenable. No part of access, other than unlicensed bandwidth, is free. I know editorius Phil has championed more pay-for-what-you-get plans based on the idea that -- you need to pay for what you use. Wi-Fi will go that direction as well, and when it does all we can hope is that there is enough competition (!) so that providers compete based on service quality and other features and not just because they are the only game in town.

kaps
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kaps,
User Rank: Light Beer
12/5/2012 | 5:44:33 PM
re: Wi-Fi Usage Drives AT&T to Raise Prices


Sarah I am sure you and I both mentioned this before... the days of free Wi-Fi are probably numbered and it's not a big number. As soon as the roaming/authentication problem becomes less of a problem you can already hear the justification of "it's all one wireless network... and here's your bill for it."


Just like unlimited cell plans, unlimited Wi-Fi is essentially untenable. No part of access, other than unlicensed bandwidth, is free. I know editorius Phil has championed more pay-for-what-you-get plans based on the idea that -- you need to pay for what you use. Wi-Fi will go that direction as well, and when it does all we can hope is that there is enough competition (!) so that providers compete based on service quality and other features and not just because they are the only game in town.

gtchavan
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gtchavan,
User Rank: Light Beer
12/5/2012 | 5:44:31 PM
re: Wi-Fi Usage Drives AT&T to Raise Prices


These clowns just gave away 4.2 billion to competitors and are at least one year behind spending on their networks.  People are fleeing their 300kb DSL service in droves and when they lost Apple they have to share the lucrative Apple business with every other carrier.  The reason they are charging for thie WiFi is becasue they need to tap every possible revenue source to survivie or I should say to pay their executive salary and their union bosses and thier pensions.   ATT is over and done with, and interstingly their demise comes a time when the demand on data networks are exploding and more and more people are depending on networks for their daily lives and when networks is becoming the knowledge base of humanity.  Stick a fork in ATT, they just found another way to PO thier customers.

^Eagle^
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^Eagle^,
User Rank: Light Beer
12/5/2012 | 5:44:30 PM
re: Wi-Fi Usage Drives AT&T to Raise Prices


Sarah,


I disagree with your comment that creative pricing is good.  I think it is bad. 


I should also point out that wifi spectrum is free and unlicensed.  Should we allow ATT to convert that into a fully monetized asset that they paid nothing for?


sailboat

^Eagle^
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^Eagle^,
User Rank: Light Beer
12/5/2012 | 5:44:30 PM
re: Wi-Fi Usage Drives AT&T to Raise Prices


Kaps,


What makes you think that we will actually have choice?  real competitive choice.  My bet is we end up with "the only game in town" scenario with price gouging to follow.  


Also, on a separate note: wifi is on free unlicensed spectrum.  The only "cost" for it is the cost of the wireless access node hardware (really cheap) and the backhaul link.  Given most wifi routers are connected to dsl links and given those links are powered over copper pairs that were long long long ago fully paid for, if ATT can monetize the wifi, then their ARPU should go up quite a bit!  zero cost for the spectrum.  fully depreciated written off cost of the physical plant.  Not bad.


However, I must point out that that rf spectrum does not belong to ATT.  It was intended to be a free band for anyone.  If ATT decides to really monetize it, shouldn't they be paying for that spectrum?  I'm just sayin.....


of course I know I might get spammed for my post.  


but I think the issue of us giving free spectrum to ATT to monetize is an interesting topic.


sailboat

VoiceOnTelecom
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VoiceOnTelecom,
User Rank: Light Beer
12/5/2012 | 5:44:30 PM
re: Wi-Fi Usage Drives AT&T to Raise Prices


Regardless of the specifics of AT&T's moves here, I agree that the times are changing in WiFi.  You have Republic Wireless, with its niche market, which would be devastated by the loss of free WiFi.  But you've also got True Corp. in Thailand spending as much as anyone on the cellular/WiFi handoff.


Where does it all end?  I have no idea.  I'm not buying the "one spectrum" argument though.  Would consumers accept that?

dave@qwest
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dave@qwest,
User Rank: Light Beer
12/5/2012 | 5:44:29 PM
re: Wi-Fi Usage Drives AT&T to Raise Prices


Well geez...AT&T had to fork over @ $4 Billion to Deutche Telcom---they need to recover somehow...:-)   The entire board needs to be fired!!!

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