Data Plans’ Business and the Role of Smart Phones
We like all the new smart phones coming out on the market, but how do the wireless providers feel about them? They’re generally happy, too. I’s opened up an entirely new business model for them, generating revenue hand-over-fist. All that data that’s running through our app-ridden smart phones is big business for companies like AT&T and Verizon (and all the rest).
But let’s focus on AT&T and Verizon for a moment, because of the iPhone. AT&T is the only company in the U.S. that offers data packages for the iPhone, and its network has seen several burdens as a result. And who likes a burdened network? AT&T doesn’t, and it’s changed its data plan offerings as a result. No more unlimited package options, meaning it will cost more for consumers to use apps on their iPhones.
Not to mention, the lack of choices when it comes to your iPhone service. Verizon has been the rumored front-runner for the next iPhone seller, though T-Mobile has been entered into the running as well. But a recent change to Verizon’s pricing model is making the company look even more like AT&T. Good for Verizon, bad for smart phone users. From PCWorld,
“The AT&T tiered pricing caused somewhat of a backlash online, with AT&T users threatening to jump carriers for unlimited data–and now it looks like those users may have to change course if they were thinking of going over to Verizon.”
Other changes at Verizon speak to the money-making potential of its service. Information released from a Verizon Customer Service Representative shows how the company is looking to upsell you on its data packages. That’s to be expected, but I expect even more customer backlash for both AT&T and Verizon if the gouging continues to get out of hand.
The phone companies can complain all they want about the effects of smart phones and their data-heavy apps. But it’s another business opportunity for them, and a pretty good segue into data-driven profits. More importantly, it’s a market for reasonable profit-making, if the mighty AT&T and Verizon can manage to appeal to consumers fairly, and cut the crap.
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