AT&T Downplays iPhone Tiered Data Talk
Posted 12/18/2009 at 7:20am
| by J.R. Bookwalter

AT&T is constantly finding itself on the hot seat as Apple’s exclusive iPhone partner in the United States, particularly for comments made last week that inferred that iPhone data hogs may soon pay more if they use more. But now, the company seems to be backing off of that unpopular stance.
The tech world has been buzzing this week about today’s planned “Operation Chokehold,” a grassroots movement aimed at bringing AT&T’s network to its knees by having as many iPhone users as possible use data-hungry apps over a 3G connection for exactly one hour this afternoon. Although Chokehold started as a joke, there are enough disgruntled AT&T subscribers that the plan has gained momentum as the week has dragged on.
Whether it’s related or not, AT&T Mobility CEO Ralph de la Vega -- who made the comments last week that triggered the Chokehold reaction -- now appears to be downplaying the idea of tiered data plans for the iPhone,
according to MacRumors.
de la Vega
told The Wall Street Journal on Wednesday: “We have not made any decision to implement tiered pricing.” Such a plan would charge the customer according to how much data they use (or presumably, don’t use), rather than the current $30 per month unlimited plan for everyone that the iPhone has made popular.
Of course, AT&T saying it hasn’t made a decision isn’t the same as saying it won’t be doing it in the future. There has been talk this week of giving high-volume data users incentives to use less data, including expansion of free Wi-Fi hotspots for customers and possibly ramping up the company’s 3G MicroCell program. The 3G MicroCell is intended to boost signal strength indoors by handing off the voice & data signal to Wi-Fi.
The pressure is really on AT&T after this week’s disclosure that the telco boosted their data profits by roughly 80% since the iPhone’s debut in 2007, yet the investment in their network has fallen during the same period. This would seem to indicate that the company enjoys a healthy profit from 3G data users but is slow to reinvest that money to improve their network, despite extremely vocal criticism regarding dropped calls and slow data connections.