AT&T Drops Unlimited Data Plan – New Rate Plans Seem Stupid to Me

AT&T will no longer offer new subscribers buying an unlimited data plan (starting June 7).  This has been predicted for a long time, but it’s sad to see it actually happen.  In my mind it’s a naked grab for cash.  The mobile web is the fastest growing segment of the Internet and clearly AT&T wants to glom onto as much of the new iPad craze as it can.  The crazy thing is that I really don’t understand the thinking behind the new plans.  You can buy the DataPlus package with 200Mb/month for $15, and can add second block of 200Gb/month for another $15.   Uhm, #fail!  You can buy the DataPro package with 2GB/month for $25.  You pay more for less?  That’s stupidity!

But the thing that really gripes me is that they want to add a $20 kicker for tethering.  I realize they stupidly have already been charging for tethering and I did not understand it then.  I still don’t, especially now that they had a chance to make a big splash to change it.  They are selling BANDWIDTH.  They actively want to sell more devices to sell more bandwidth.  Yet if you have two devices, you have to pay nearly double even if you consume the same total number of bits! They clearly either think we are ignorant savages who they can exploit, or more likely, see that for some period of time we have no choice so if we want to connect we will pay their stupid fees.  Cash grab.

The reality is that Sprint, Verizon and T-Mobile have a golden opportunity here:  buck the trend and don’t just play follow the leader.  Go the other way and offer 5GB for CHEAPER.  And let folks tether!   It’s the same bandwidth after all, it’s no skin off the carrier.

AT&T has just exposed a soft underbelly.  Will the other carriers have the courage to do something about it?  Or will they just follow along and play gouge the consumer again, and then whine like babies about churn?  Time will tell.