Experts Say Mobile Internet Rates Likely to Rise

LOS ANGELES — Mobile Internet data rates are likely to rise in the near future.

This analysis comes on the heels of news that mobile voice rates are falling. According to CNET News, Spring Nextel plans to roll out a $69.99 monthly rate. A price war among the major carriers is also likely, and even though that will be good for consumers, it’ll mean trouble, too.

To make up for the money they’re due to lose on voice services, mobile carriers will likely pump up the prices on Internet service.

"Voice revenue is declining for the carriers," said analyst Charles Golvin of Forrester Research. "And the vision for the future is to use data revenue to make up for the shortfall and to kick [average revenue per user] into growth mode."

Consumers are primed for these price increases. Most mobile carriers offer catch-all data plans at large flat rates. AT&T, Verizon and T-Mobile all offer data plans that range in price from $30 to $40, and those are in addition to their rates for voice services.

These data plans promise big things but don’t always deliver. Spring Nextel claims to offer unlimited data for a flat rate, but there’s actually a 5GB cap, above which consumers get charged extra fees.

And users are dialing up the Internet more and more on their mobile devices. In the second quarter of 2009, AT&T saw a 37.2 increase in usage, while Verizon’s usage went up 52 percent.

Text messages also kill consumers. Even though it’s widely known that delivering text messages costs carriers very little, they all charge a premium for it. If songs costs as much to download as text messages cost to send, one track would cost more than $5,000.

Related:  

Copyright © 2026 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

Chaturbate Launches Year-Long 15th Anniversary Campaign

Chaturbate has launched "CB15," a year-long campaign to celebrate the company's 15th anniversary.

AV Bulletin: Loopholes and Lawsuits

This roundup provides an update on the latest news and developments on the age verification front as it impacts the adult industry.

Utah 'Porn Tax' Bill Will Head to Governor's Desk

A bill that would tax adult websites and make them liable if minors circumvent geolocation has passed the Utah state legislature and will soon head to the office of Gov. Spencer Cox for signature or veto.

Flirt4Free Co-Founder Gregory Clayman Passes Away

Gregory Clayman, a pioneering figure in the live cam sector and cofounder of the long-running webcam platform Flirt4Free, has passed away.

Pornhub to Restrict Access in Australia as AV Rules Take Effect

Pornhub parent company Aylo will restrict access to its free video-sharing platforms in Australia in response to new age verification regulations, the company confirmed Thursday.

ASACP Announces F2F as 1st Gold Sponsor

The Association of Sites Advocating Child Protection (ASACP) has announced Friends2Follow (F2F) has upgraded its sponsorship and become the organization’s first Gold Sponsor.

House Committee Approves Online Safety Bill With Federal AV Requirement

The U.S. House of Representatives Committee on Energy and Commerce on Thursday passed the Kids Internet and Digital Safety (KIDS) Act, which includes provisions to make age verification by adult websites federal law.

Segpay Adds 'Pay by Bank (UK)' Payment Solution

Segpay has added the Pay by Bank (UK) option to its direct payments solutions.

Creator Verification Platform 'VerifiedCollab' Launches

Performer Eli Thomas has launched VerifiedCollab, a verification platform for creators and producers.

House Committee to Weigh Online Safety Bill With Federal AV Requirement

The U.S. House of Representatives Committee on Energy and Commerce will meet Thursday to consider and potentially amend the Kids Internet and Digital Safety (KIDS) Act, which includes provisions to make age verification by adult websites federal law.

Show More