Thursday, June 03, 2010

ATnT new data plans

ATT recently released its new data plans according to which the unlimited data plan for 30 dollars will be replaced by two plans, one that provides 200 MB for 15 dollars and the other that provides 2 GB for 25 dollars. Any overage will be charged per some unit of data, for example, 10 dollars for every extra 1 GB used. Existing unlimited plans will remain unaffected, but contrary to previous promises new 3G iPad will not come with unlimited data plan any more.

There are two sides to the decision. Some feel that this is a step backward in terms of technology. The example being given is that of the internet plans that moved from limited data plans to unlimited plans for a fixed price. The other side feels that people who use more should pay more than others. In fact a large percentage of people (including those using the iPhone) can now opt for the 15 dollar plan since the actual usage per month is in fact less that 200 MB for them. Even for heavy duty users (business users who browse internet and check mails every hour) the usage would be less that 2 GB allowing them to save 5 dollars. The people who would be impacted most are those who watch videos on their phones regularly.

In my humble opinion, even though it is imagined that our telecom/wireless industry is one of the most advanced technology sector, we have to remind ourselves that the data usage has multiplied 100 times in last 4 years and even though the telcos had a lot of spare bandwidth at their core, not only is it depleting fast, but also higher data usage is requiring installation of more towers per unit area. May be 10 years down the line, the telcos will catch up with the demand for data but unlike wired routers used for the internet, the 3G wireless technology is highly energy inefficient and I believe that it should always be charged according to usage in the same way as gas is paid for according to the distance that one travels. Otherwise this will become a major cause of pollution in years ahead both in terms of energy consumption and expensive heavy duty toxic batteries.