The Future is Flat: One Fee to Rule Them All
Like it or not, service providers will have to start charging flat rates for Unlimited usage to stay competitive. When Globe Telecom started offering their Visibility HSDPA service for only Php 2,000 (around $40 or 30 euros) a month, the prospect of accessing the Internet at broadband speeds with smartphones like the Samsung SGH-Z560 and Nokia E90 became more attractive. The same happened when competitor Smart Communications started charging Php 10 ($0.20 or 0.15 euros) for 30 minutes of 3G (EDGE) usage.
Flat rates are great, because it lets users do more while paying less. It doesn't matter if customers only check their email periodically, download songs, or even enjoy mobile TV. The bill at the end of the month will be the same. Cheap, unlimited fees are like an addiction: once you get hooked, it becomes a habit impossible to break.
Flat rates are inevitable, as service providers rush to one-up each other. It's not a matter of if, but when. So companies will face the challenge of providing reliable service despite lowering profit margins. They'll have to find a way of squeezing out more capacity out of networks with less money to work with.
The competition will grow fierce; only service providers who give what users will demand (Vodafone's new tariff scheme will probably apply to smartphones and PDA phones soon), and infrastructure manufacturers (like Nokia Siemens Network) who can supply the cheap, yet reliable and high-capacity network hardware needed for this will survive. It's possible that the first to the game will leave the winner.
What's great about all this? No matter what happens, the customer will win.
apple iphone
March 15th, 2007 at 8:00 pm #
Most of the carriers in the U.S. offer several data plans based the usages. The basic data plans may appear much cheaper than the unlimited ones, but once you exceed the quota, the cost can be much higher. I would go for the unlimited data plan for a flat rate.
Rico
March 19th, 2007 at 4:25 am #
@apple iphone, and I think customers will clamor for unlimited rates especially since mobile web access is becoming a necessity.
The first service provider who gives people what they want, as I said, will be a winner.
ThxRehab
May 11th, 2007 at 10:56 am #
It is true, I’ve experienced myself this phenomenon, only it was with my home Internet subscription. Unlimited download was the phrase that caught my eye and ever since I can’t help to stay online and download all sorts of data I need for my work.