AT&T is Working on a Way to Have Developers Pay for Your Data Usage

POST

MAIL

Posted February 27, 2012 at 7:01pm by iClarified

AT&T is working on a new service that who let developers and content providers pay the wireless data charges that the users incur on the AT&T network, according to the WSJ.

AT&T's network and technology head John Donovan said the service would be like toll-free calling for the mobile broadband world.

"A feature that we're hoping to have out sometime next year is the equivalent of 800 numbers that would say, if you take this app, this app will come without any network usage," Mr. Donovan said.

He noted that there was interested in the service from companies who were looking to get business from customers wary of data intensive services.

"What they're saying is, why don't we go create new revenue streams that don't exist today and find a way to split them." For example, a customer might be more likely to purchase a movie if he knew it wouldn't take anything out of his monthly data allowance. "It'd be like freight included," Mr. Donovan said.

Read More

AT&T is Working on a Way to Have Developers Pay for Your Data Usage

Follow iClarified

rogue.neutron - February 28, 2012 at 4:32am

This feels like a bait-and-switch because using the app is not really 'toll free' at all. AT&T would have the App/content makers buy bandwidth, and that cost will then be passed to the customer. Its just another way to get users to pay more for bandwidth.

Reply · Like

Matt Sawyers - February 28, 2012 at 12:18am

This isn't good IMHO. Consumers are likely to pay more for the data this way. riddle me this: You pay $30 for "unlimited data" per month. For App1 you pay $0.99 Now that App1 offers "no data usage for using our app" they increase the app to $9.99 There aren't many devs/providers that would be able to sustain a service of this sort without requiring an increase in app price. Now imagining this happening for all your apps. Maybe not a price per app, but what happens if they start charging per year? Just saying...

qw1987 - February 27, 2012 at 9:35pm

I can actually see the advantage here for some people. It is obviously of no value to those of us with uncapped data plan, especially once ATT is required to discontinue their throttling. But for a capped data plan, especially one that is on your child's phone, there is a certain attraction.

Calum - February 27, 2012 at 7:58pm

They just got sued for breach of fair trade law. Unlimited plans are being throttled back. So that so called "unlimited" plan is a lie. So what do they do with the hint of a class action law suit on the cards? Get the developers to pay instead. How about a fair priced data plan with honest terms and conditions.

MrYogi - February 27, 2012 at 7:36pm

The CEO needs to be replaced!!!! His strategy sucks