Thursday, September 16, 2010

Against the Limited "Unlimited" data plans

Once upon a time the Mobile Operators had loads of bandwidth and not enough data users. So they decided to lure the poor users into buying the 'unlimited' data plans. They were sure that the devices are quite rubbish and no one can use enough data. Just for the precaution some clever operators added a small print where unlimited meant 1 or 2GB. The operators thought that the users will never reach this amount.

Then came the iPhone and changed the whole world. People actually started using the data on their devices. The operators started panicking. Android just compunded this problem. So the operators now have started advocating against these unlimited plans.



The CEO of Vodafone , Vittorio Colao , has told attendees at this year's Nokia World 2010 event that he welcomes the end of "unlimited" Mobile Broadband data plans. Colao also warned consumers that "data pricing has to adjust", thus signalling a greater focus on tiered pricing models.

He added: "The principle here must be that, a bit like motorways or hotels, every class of service needs to have its own price and customers must be able to pay for the level of service [they want]. Pricing should be adjusted to reflect the usage and load. We are approaching the end of the free era."

The cowboy salesmen are still fooling the average Joe when it comes to unlimited plans. People sue the operators but dont succeed.

We are begging to see the return of those bad old days when WiFi was the only option in conferences, etc and they were really expensive. Now instead of WiFi we have got our dongles that may not work well anyway inside the conferences or hotels due to the structure or location but when they do, you again have to think about the costs.

In Korea, KT Telecom had to introduce unlimited plans because the other rival introduced one. This is probably because they still have spare bandwith available. Once that gets used up then they will either be running for caps or advocating against the unlimited plans.

I have been against the unlimited plans from the beginning but I advocate that the operators become a bit wise in the way they charge us, the end users.

If I have 4 devices I dont want limited data on all devices because I dont want to keep track of which devices use how much data or have an allowance. Maybe what I need is a data bundle that I can use across devices and maybe share with my family members. Wallmart has recently come up with something similar in US. Wallmart is a MVNO using T-Mobile network. Though their data plans are expensive compared to T-Mobiles plans just because they allow data sharing and rollover, people may go for them.

Rollovers are available on Pay as you go plans but not on Pay monthly which makes the pay monthly (generally on contract) people seem stupid. Operators should encourage this, maybe keep a maximum that can be rolled over.

Finally, there is this net neutrality and QoS discussions are going on. Eventually some kind of QoS or destination based speeds, etc will come but for the end user they will go where they will get what they want. The operators should remember this.

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