AT&T Decision to End Unlimited Wireless Data Plan Could Threaten Mobile Content Consumption
AT&T announced on June 2 that it is phasing out unlimited data plans for wireless service. The New York Times reported that mobile app developers worry that if all wireless service providers adopt a similar pricing plan, customers will be reluctant to download and use the most bandwidth-intensive apps and that developers will cut back on innovative new features that would push customers over the new limits. However, many of the most successful applications are the simplest, and the announcement may drive developers that have been creating complex programs towards simplicity. There may also be more trends towards layered products, whereby small apps are available and support the largest user base, and the small number of heaviest bandwidth users use richer apps with more features and functionality of a given service, for higher fees. Considering new devices coming online (the newest Android-powered devices and the new Nokia devices seem far more advanced than the iPhone’s operating system), models for micro-transactions ‘in app’, and new purchase capabilities through m-Commerce innovations such as billing to the wireless service provider, it is safe to say that the announcement will certainly be another dynamic for market innovators to drive new behavior.
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