AT&T Drops Unlimited Data Pricing Plans

WASHINGTON — AT&T Inc. today became the first major U.S. wireless company to move away from unlimited Internet pricing plans for new wireless subscribers, kicking off a shift in how carriers bill their customers.

The move — which marks the company’s second price cut for wireless plans in the last six months — came after months of talks about the need to switch to metered billing in an effort to reduce congestion and improve service on its mobile networks.

There's also concern about wireless consumer's complaints to the FCC about "bill shock."

The company said about three percent of its smartphone customers account for 40 percent of its wireless data usage.

AT&T has been particularly vulnerable to the network jams because it’s the exclusive carrier of Apple’s iPhone, whose customers tend to use more data than other subscribers.

The new billing structure takes effect June 7 when Apple is expected to announce its new iPhone.

AT&T said it will eliminate its $30 unlimited data plan for new smartphone subscribers and replace it with new offerings costing $15 a month for 200 megabytes of data traffic (about 1,000 emails without attachments, 400 Internet-page views or 20 minutes of streaming video), or $25 a month for two gigabytes. AT&T said 98 percent of its customers use less than the two gigabyte upgrade.

The new plans will lower the cost of an entry-level voice and data plan to $54.99 from $70. The company thinks the lower price will bring in customers deterred by the current cost.

"I think what it's going to do is bring more people into the smartphone marketplace," said Ralph de la Vega, head of AT&T's wireless operations.

The new plan may benefit most subscribers, but regular users of streaming video services like Google's YouTube or audio services like Internet radio could quickly burn through their allotments, AT&T said.

"A lot of people use less than they think they do," AT&T spokesman Mark Siegel said. "Customers will be warned via text or email if they approach their limit and they can check their usage easily with their phones."

Existing smartphone customers and iPad users can keep their existing plans indefinitely (even if they switch phones). The company is hoping customers will shift their data use to more robust Wi-Fi networks, where unlimited use of 20,000 hot spots around the country will be free under the plans.

A tethering option will also be available for an additional $20 a month that allows customers to use their phones as modems to hook up their laptops to the Internet. Tethering will become available after Apple releases its newest iPhone operating system later "this summer," AT&T said.

Related:  

Copyright © 2024 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

Democratic Governor Fails to Veto Kansas Age Verification Bill

Kansas’ Democratic governor, Laura Kelly, expressed strong reservations about the state’s version of the age verification bills being sponsored around the country by anti-porn religious conservative activists, but ultimately decided not to veto it, allowing the legislation to become law by default without her signature.

FSC's Alison Boden Testifies Against California Age Verification Bill, Urges Action to Defeat It

Free Speech Coalition Executive Director Alison Boden testified Tuesday against AB 3080, California’s version of the age verification bills being sponsored around the country by anti-porn religious conservative activists.

Phoenix Marie Sues Aylo, Danny D Over Incident on Digital Playground Set

Phoenix Marie has filed a lawsuit against Aylo, performer/producer Danny D and other defendants, alleging she has suffered defamation and damage to her career over a 2023 incident on a Digital Playground set in Spain.

New Premium Creator Platform 'Lemon Social' Launches

Premium creator platform Lemon Social has debuted.

MomPOV Producer Pleads Guilty in GirlsDoPorn Case

MomPOV producer Doug Wiederhold, who was formerly the partner of GirlsDoPorn owner Michael Pratt as well as the first male talent for GDP, pleaded guilty Thursday to a federal conspiracy charge.

Streamate Exec Liz Rek Joins FSC Board

The Free Speech Coalition board of directors has tapped Streamate executive Liz Rek as its newest member, effective immediately.

2024 XBIZ Creator Awards Nominees Announced; Voting Now Live

XBIZ is pleased to announce the nominees for the 2024 XBIZ Creator Awards, presented by Fansly.

Adult Site Broker Talk's Bruce Friedman Reflects on Podcast Success

The 200th episode of “Adult Site Broker Talk” will air next week, with 2023 XBIZ Performer of the Year Cherie DeVille as the featured guest.

FSC Asks Supreme Court to Overturn 5th Circuit Decision, Strike Texas' Age Verification Law

Free Speech Coalition (FSC) filed a petition for certiorari on Friday asking the U.S. Supreme Court to overturn the Fifth Circuit panel decision that partially upheld Texas’ controversial age verification law.

Details Emerge About Capture, Arrest of GirlsDoPorn's Michael Pratt

Further details have emerged in the past week about the capture and arrest of GirlsDoPorn owner Michael Pratt in Spain in December 2022, following his extradition to the U.S. last month.

Show More