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AT&T CEO voices regret over iPhone unlimited data model

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Re: AT&T CEO voices regret over iPhone unlimited data model

#11
In the end AT&T and the other carriers don't want to be "dumb pipes", but that's what consumers want. Can you imagine the same applied to water? "I'm sorry sir, but we know you used an unapproved toilet AND you went over your allotted shower minutes this month."

We can only hope that it'll work out in our favor and they can stop preaching to us how we should use their bandwidth.

Re: AT&T CEO voices regret over iPhone unlimited data model

#12
post #6

"Apple iMessage is a classic example. If you're using iMessage, you're not using one of our messaging services, right?" It's hard to believe this is a real quote by such a senior executive. If the profitability of your business is so significantly based on a hack (SMS) that you stay awake at night worrying about it, and you didn't bother innovating by developing a real solution to the problem (pervasive real-time com…

Despite SMS being a hack that costs carriers (essentially) nothing to send [1], the reality of this situation is that telcos will be/are quickly losing one of their largest profit points to services like iMessage.

Real question: Where are they going to recover that profitability from?

[1] http://www.wired.com/gadgetlab/2008/12/text-messages-c/

Re: AT&T CEO voices regret over iPhone unlimited data model

#14
post #4

The iMessage thing is, IMO, the more interesting comment. Apple has effectively ripped a revenue stream away from the providers, and they can't do much about it apart from raise prices for other stuff. They're not alone, of course- BBM does the same thing. But they're all disjointed networks, which plays into the provider's hands right now. People still need text plans to contact people on other devices. I wonder if…

Probably not. There have been dozens of challengers (Kik, Beluga, WhatsApp), no one has gathered the ubiquity or reliability of SMS. The one one I can conceive of hitting that goal is Facebook, and at the moment they don't seem to be trying too hard.

Just another silo. You know what has the ubiquity of SMS? Email.

Re: AT&T CEO voices regret over iPhone unlimited data model

#15
post #6

"Apple iMessage is a classic example. If you're using iMessage, you're not using one of our messaging services, right?" It's hard to believe this is a real quote by such a senior executive. If the profitability of your business is so significantly based on a hack (SMS) that you stay awake at night worrying about it, and you didn't bother innovating by developing a real solution to the problem (pervasive real-time com…

Despite SMS being a hack that costs carriers (essentially) nothing to send [1], the reality of this situation is that telcos will be/are quickly losing one of their largest profit points to services like iMessage. Real question: Where are they going to recover that profitability from? [1] http://www.wired.com/gadgetlab/2008/12/text-messages-c/

Providing value over what a 500 loc client app and a 50 loc Node.js server can offer would be a good start.

Re: AT&T CEO voices regret over iPhone unlimited data model

#16
post #6

"Apple iMessage is a classic example. If you're using iMessage, you're not using one of our messaging services, right?" It's hard to believe this is a real quote by such a senior executive. If the profitability of your business is so significantly based on a hack (SMS) that you stay awake at night worrying about it, and you didn't bother innovating by developing a real solution to the problem (pervasive real-time com…

What makes the move from unlimited data to "pay for what you eat" is the bizarre tethering restriction: they expect people to pay $25 more per month to tether without additional data.

If your shifting your model to selling data, wouldn't you want to make it as easy as possible for your customers to consume more data?

I don't get it. If tethering was free, I'd use more of it, and happily pay for it.

Re: AT&T CEO voices regret over iPhone unlimited data model

#17
post #15

Earlier quoted context omitted.

Despite SMS being a hack that costs carriers (essentially) nothing to send [1], the reality of this situation is that telcos will be/are quickly losing one of their largest profit points to services like iMessage. Real question: Where are they going to recover that profitability from? [1] http://www.wired.com/gadgetlab/2008/12/text-messages-c/

Providing value over what a 500 loc client app and a 50 loc Node.js server can offer would be a good start.

I was going to say something similar. While I realize that we are mostly entrepreneurs here, aren't there some of us who believe in working hard and providing a reasonable service or product at a reasonable price? In all seriousness, people often consider giving to charities and whatnot as a contribution to society. Wouldn't it be even greater to simply run a service - especially in this case - for an "honest" amount of money; ie, enough to make some profit, save some, and cover costs? Is this line of thinking completely absent from society?

Re: AT&T CEO voices regret over iPhone unlimited data model

#18
post #6

"Apple iMessage is a classic example. If you're using iMessage, you're not using one of our messaging services, right?" It's hard to believe this is a real quote by such a senior executive. If the profitability of your business is so significantly based on a hack (SMS) that you stay awake at night worrying about it, and you didn't bother innovating by developing a real solution to the problem (pervasive real-time com…

Despite SMS being a hack that costs carriers (essentially) nothing to send [1], the reality of this situation is that telcos will be/are quickly losing one of their largest profit points to services like iMessage. Real question: Where are they going to recover that profitability from? [1] http://www.wired.com/gadgetlab/2008/12/text-messages-c/

Where are they going to recover that profitability from?

They won't. They'll eventually need to adapt to the reality of their business, which is to move data from one point to another. They'll get to decide how to monetize their dumb pipes but their current SMS business model won't last.

Re: AT&T CEO voices regret over iPhone unlimited data model

#19
I bet Ma Bell had the same sad face on when they no longer had a monopoly on leasing phones to customers.

Time moves on and the pipes get commoditized. I hope congress chooses to side with the people rather than mandate profits for the corporations to whom we lease our airwaves.

Re: AT&T CEO voices regret over iPhone unlimited data model

#20
post #11

In the end AT&T and the other carriers don't want to be "dumb pipes", but that's what consumers want. Can you imagine the same applied to water? "I'm sorry sir, but we know you used an unapproved toilet AND you went over your allotted shower minutes this month." We can only hope that it'll work out in our favor and they can stop preaching to us how we should use their bandwidth.

> Can you imagine the same applied to water?

I don't get unlimited water for a monthly fee, I get charged per gallon. I'd imagine virtually all people have this situation.

Utilities - water, electricity, gas, etc. - compare to AT&T's new model better than their unlimited one.

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