Is the iPhone Creating Troubles for AT&T?
Can business be TOO good for AT&T right now? The exclusive deal AT&T has with Apple for its iPhone customers has brought many new consumers. These customers now account for 7.5% of the AT&T subscriber base. That’s the good news. The bad news is that these consumers use two to four times the data of other smart phone users, but are being charged the same ($30.00 monthly) as other users. AT&T is in a difficult position, because they obviously want to hold onto as many customers as possible, but they need to add bandwidth to handle the added traffic. Raising prices or limiting plans to the consumer does not seem an option, so the cost will be AT&T’s burden. AT&T has some difficult decisions ahead, and the ending of their exclusive arrangement with Apple does not make things easier.
UPDATE:
AT&T angered more people this week when they announced that they would restrict the new SlingPlayer Mobile iPhone application to operating only on Wi-Fi. The company said the app would take up too much bandwidth, but critics believe that restricting the app to Wi-Fi effectively diminishes the advantages and content of the application. More challenges for AT&T brought on by the popularity of the iPhone and its applications.