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 © 2025 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

New Fansly Analytics Platform 'SlyKiwi' Launches

SlyKiwi, a new analytics platform exclusively designed for Fansly content, has officially launched.

FPNCash Appoints Kimi Evans Head of Business Development

FPNCash has appointed Kimi Evans as its new head of business development.

CamModelDirectory Launches Platform Upgrade

CamModelDirectory has launched its CMD 3.0 platform upgrade.

AEBN Publishes Popular Searches by Country for June, July

AEBN has released the list of popular searches from its straight and gay theaters by country in June and July.

Playboy to Move Global HQ to Miami Beach

Playboy announced today that it will be moving its global corporate headquarters from Los Angeles to Miami Beach.

Bellesa Plus Names Magalie Rheaut as Chief Growth Officer

Bellesa Plus has named Magalie Rheaut as its Chief Growth Officer.

PASS to Relaunch Performer Subsidy Fund

PASS has announced that it will relaunch the Performer Subsidy Fund (PSF) to cover sexually transmitted infection (STI) test panel costs for up to 10 people each month.

Pineapple Support Taps Austin Ponce as Brand Ambassador

Pineapple Support has named Austin Ponce as its newest brand ambassador.

Taylor Vixxen Stars in New DezyRed Interactive VR Game

Taylor Vixxen stars in an interactive VR game from DezyRed.

XBIZ Amsterdam's Jakarta Hotel Sold Out, Additional Hotels Announced

Guest rooms at XBIZ Amsterdam’s host conference venue, Jakarta Hotel, are now completely sold out.

Show More