I am against tiered pricing and here is my reasoning.
For ATT 3% of users use about 40% of network capacity. At a first glance, it 
would look like a lot of people will spend less money if they paid for what 
they used. Unlimited users should pay more then casual users. Right? If that is 
true, the carriers will lose money if they move to a tiered model. No? Then why 
are are proposing tiered pricing? Theoretically it may be true if they keep per 
GB cost low but practically what will happen the carriers/telcos/cable 
providers will bump the unlimited and per Mb usage charge way high. There will 
be a perceived value in getting the higher limit plan. It's like wine tastes 
better because you paid more for it.  For most providers doing this will 
increase their average revenue per user (AURP). Also, why are users forced to 
get data plans when they get a smart phone? Now, the carries have started 
forcing users to get data and text messaging plans because the cost of voice 
calls are going down. Okay. I will stop my rant now. 

 





--
Karthik Poobalasubramanian
Louisiana Board of Regents
[email protected]
[email protected]
(225) 341-5855
skype: poobal









On Mar 3, 2010, at 2:07 PM, Dustin Puryear wrote:

> I know I'll catch a lot of flack for this, but, honestly, I'm not against 
> tiered pricing from service providers like AT&T for high-bandwidth users:
>  
> http://www.appleinsider.com/articles/10/03/02/att_says_tiered_data_pricing_inevitable_not_rushing_towards_4g.html
> Why should users that use little bandwidth subsidize high-bandwidth users?
>  
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> Puryear IT, LLC - Baton Rouge, LA - http://www.puryear-it.com/
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