On the front page of Friday’s Wall Street Journal, http://on.wsj.com/wlmlws, AT&T announced their latest attempt to control their costs for providing broadband services. They are planning to reduce the speed of your data service on your mobile device once you have surpassed your monthly purchased data limit.
With the growing popularity of mobile devices (smartphones such as the iPhone and the Android) as well as the iPad, the appetite for broadband services has surged. Last year, over 50% of all cell phone purchases were smartphones, whether new users or upgrades.
Most consumers don’t understand their data plans. Cell providers (AT&T, Verizon, etc.) offer “tiered data plans” based on data usage. What this means is that it is important to know your data usage and determine which plan is right for you. This information is available by simply contacting your provider. Streaming video from sites like Netflix will use up a lot of your data allotment.
The problem with this program is that, as their customer, you are being penalized for their inability to keep up with the demand for broadband services. Why not make sure their customers understand their data plans and make sure that they are subscribing to a program based on their usage? This is done for your calling plans without the risk of diminishing service once you have surpassed your purchased minutes.
Let’s hope that their competitors don’t follow this strategy. I called my provider, found out my average monthly usage and purchased a plan that was right for me. I suggest you do the same.
If you need help understanding your data plan, do not hesitate to contact me at 917 921-4518 or by e-mail at jblue@bluetutor.com. Feel free to click here to receive my free white paper on Technology Tips on setting up a home office and becoming a true road warrior.
