The Federal Communications Commission (FCC) has formally initiated a rule making process towards establishing net neutrality among the internet service providers.
This proposed rule, which shall also apply to wireless broadband service providers like AT&T, has been a hot point of debate over several months now.
If implemented, this would then make internet providers liable to provide access to all legal websites and applications without any selective blockage or slowing down of content. Wireless broadband providers have been strong opponents of the rule claiming that this could prove to be a huge hindrance in them offering quality service to their customers. This comes in the backdrop of a terrific growth in AT&T's broadband usage over the past few months that has led to constant criticisms among customers over their network congestion.
Time and again, AT&T has acknowledged that smartphone users; mainly the iPhone owners have been voraciously consuming their bandwidth. Jack Gold, an analyst at J. Gold Associates who agrees with AT&T's plight claims that 5% of the users sometimes take up to 90% of the bandwidth.
So what is AT&T's plan of action if net neutrality comes into effect? According to Ralph De La Vega, the CEO of AT&T Mobility, his company has seen "data explosion like we've never seen ... and a lot is driven by a small percentage of customers". De La Vega has confirmed that AT&T is in the process of finalizing a pricing plan that could impose higher charges on users consuming large volumes of data. According to him, AT&T has been:
"experimenting with focus groups to figure out how to handle that [issue] of how to get that small percentage [of users] to carry their weight, if you will, without imposing on others in a way that's detrimental".
While we can expect a lot of furore if AT&T moves ahead on this plan to penalize data consumers, it certainly makes a lot of sense for a majority of customers who are affected by the 1% of AT&T customers who Jack Gold calls 'bandwidth hogs'.
With AT&T's iPhone exclusivity tentatively coming to an end next year and with the roll out of HSPA 7.2 in the coming few months, AT&T could face some relief from network congestion. However, considering that this is an industry-wide problem and not merely that of AT&T, we would tend to call this an inevitable move on part of AT&T when net neutrality comes about.
Let us know your thoughts in the comments.
[via IDG News]
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Data overload is going to happen. Regardless. And in the future, it's only going to get worse as technology incrases and people browsing the web on their phones + app. usage become more popular. Ralph needs to figure out why AT&T's 3G network coverage sucks, fix it using profits from their record-breaking quarter, and give the customers what they want. Or else, they will go elsewhere. Like Verizon. When they start selling the iPhone.
I'd certainly use a lot less of my data plan if 2G were not so slow … AT&T blames the user rather than its decrepit network, for which we subscribers have paid dearly over the last 2+ years. We won't miss you, AT&T.
Honestly im not sure what all the complaining is about AT&T and their network, where I am at they smoke the competition ten fold, I have great service everywhere i go and never have less than stellar speeds with 3G.. I've done speed test with AT&T and Verizon and from where i stand AT&T wins hands down…
My question if everyone like Verizon so much why are they with AT&T? go on move to another service and clear up the network for those of us that appreciate AT&T for bringing us the iPhone!
I wonder who is considered Bandwidth hog? If any one uses more than 20Mb/mo (which is the lowest AT&T international package) is considered bandwidth Hog? This definition would be critical. If AT&T or any one else for that matter charges for what many people may consider as minimum required to effectively use it, then the use of the smart phone can be questioned.
If that's the case, I say AT&T would be breach of contract (since I signed up for unlimited bandwidth), so the customers are not bound by contract and can move to any other provider without penalty. I wonder if AT&T would allow that to happen.
AT&T REALLY NEEDS TO GET THERE HEAD ON STRIGHT, WHEN I GOT THE IPHONE I HAD TO GET A UNLIMITED DATA PLAN, SO NOW IM A BANDWIDTH HOG?? I DIDNT HAVE A CHOICE AND NOW AT&T WANTS TO CHARGE US A PENATLY FOR USING TOO MUCH DATA? I THOUGHT I'M PAYING FOR UNLIMITED DATA??? THIS IS REALLY STUPID AND IF AT&T DOES START CHARGING PENATLYS SORRY APPLE BUT I REALLY LOVE THE IPHONE BUT, I WILL LEAVE AT&T, WE THE CUSTOMERS ARE WHAT ARE THE DEMAND OF THE COMPANY AND AT&T DOESNT WANT TO SUPPLY. WHAT A BOUGS COMPANY.
I can see what is going to happen, AT&T will collapse between them loosing Iphone Exclusivity and then charging higher fees to "bandwidth hogs" they will be forced to merge with another carrier, it's a double edge sword for them! I would leave AT&T without thinking about it. I am up for upgrade in Nov to 3GS I might not extend my contract! I might not take that option up! this looks like the beginning of the end! and yes if they do decide to change the terms of the contract we can leave without early termination that's why it's a BI-LATERAL contract!
its people like me that use 7-10 gigs a month via the iphone tethering hack that they are pissed at,
7-10 gigs? I can use that without tethering quite easily, just using Apps in the App Store, such as the various streaming audio apps and Youtube, I love to listen to them when I drive and I live in the Los Angeles area, so you know that I am in the car a lot.
The coverage where I normally drive is o.k., but in many place it is a lot worse than with T-Mobile.
Damn!!! I average 200 Mb a month n I'm always on my Iphone…
Please Please PLEASE cut back on the ads embedded in your text, iphonehacks.com!!! Its is extremely annoying to be scrolling down the page and not even be able to read the text because pop up after pop up is blocking the text. This frustration has definitely turned me off and I will no be getting my iphone news from modmyi and boygenius report until this is fixed.
Truth is AT&T does not exist to provide you with service. They exist to make a profit, by providing you with service. And like anything else that becomes wildly popular, they will figure out how to profit greater from it. AT&T will have to engage money-grab-mode while they still can, as the window is closing.
Fuck them they don't even provide the people they have with the 3g service they pay for every month (unlimited 3g coverage on the fastest 3g network in the country) bull they have the smallest 3g coverage area of any company in the country. So I say to you ATT finish and or fix your delapadated non contractual conforming network and then you can have the right to bitch about bandwidth. I have been with ATT since the first bag phone and am really getting tired of them botching about bandwidth usage when they are providing an unlimited bandwidth package and not addressing the real probablem witch is there 3g network or in my and many other peoples cases the lack there of even though were getting charged extra for it but don't have acess to it. Untill you sweep your porch ATT don't be sweaping ours!!!
AT&T is just crap now. I've been with them through, AT&T, Cingular, and back to AT&T…and swore by them no matter how much people argued against them, but since the iPhone has come about, my opinion has changed. Not only has the quality of their service suffered, but the solutions to most of the issues is that the end user, that is paying for an agreed service, has to cut back. Shame on Apple for not giving us MMS like every other phone has for almost a decade, but when they finally enabled, AT&T wasn't ready?!? Was this a f**king surprise to them? … and instead of addressing the problem during the whole 2 years they had before it was enabled, they want me to be ok with waiting because they have to make the appropriate upgrades for the increased data?! Now they are complaining about the amount of data the iPhone uses and how users should have a cap placed on the amount they use?! I pay $30 extra a month for the UNLIMITED DATA. I only pay a little more than that to have highspeed to my PC which is way more capable than the iphone and uses WAY more data. AT&T have really shown that they were never ready for smartphones and how they are incapable of figuring out solutions without effecting the, already crappy, service that I pay for. I feel bad for AT&T because like I said before…I would have argued with people if they complained about them, but now, they are making their own damn bed.
agreed!
I'm sick of this shit.It was Apple now it's AT&T turn.What fucking ever.Just go a head,don't try to scare to the loyalty customers.
I am an att customer and if they try go up on 1 more thing they whine about every month they ROB us> I will buy out my contract and tell all these assholes where to go.we the people are tired of bogus ass charges and we not gonna take it no more because the way I see it you are charging us for airtime you don't own and never did.so unless you people realize we don't want your service anyway so stop with he fear tactics,cause it gets you no where but more customers leaving your sorry asses and your pitiful services
Sameazel
Yes iPhones pay a higher price then the other phones like Windows Mobile other phones can have data plans for I believe $15 and iPhones are $30 so yes we use more but also pay more. It is now coming to a point where most of the money they are getting is from iPhone sales so why complain and fix the network and if they don't like the iPhone then get out of the contract and let other providers also sell the iPhone and iPhone users will drop ATT in a second due to all the problems they have with thier network. It is just lack of planning and if their network can't handle then slow down on the sales oh wait they wont do that cause that is money and let the iPhone uses and other suffer from lack of planning.
wait wait wait…..
i believe that i signed a contract??!?!?
meaning that i have UNLIMITED DATA
now they want to change it and charge me?
this sounds like a perfect way to get out of a 2-year contract for free!!
i cant change the rules in the contract so why can they?
CANT WAIT!!!!!!
I pay 155 for my iPhone if they go one penny more
I m gone. I will be with t mobile.
Ahmen
If you have T Mobile in your area, why havent you unlocked your iphone and switched already?
I wish they would take some of my 200 a month and put it into fixing things instead of their pocket. What will I have to pay now? This is too much ATT. I cant wait until someone else picks them up. I will look into the t mobile hack this weekend.
If you read your contract you will find they made you agree that they may change the terms and conditions without notice. They can literally do whatever they want.
What are you talking about? This website is excellent! What popups?
Oh wait… you don't have a popup blocker?
……….
……..
FML
At&T did not bring you the Iphone. Apple brought you the Iphone. AT&T paid big time to be able to control where you buy it…
4 to 8G is what I average without tethering.
What kills me is on on hand ATT whines about bandwidth yet still pays heavy subsidies to get more and more subscribers into the iphone.
Dont subsidize the phones then you wont have millions clamoring to get the iphone and hogging the bandwidth.
ATT stop your whining about bandwidth aleady.
If you don't want people to use unlimited bandwidth.. then don't tell them that they have unlimited usage.
If you advertise to people that they are free to use your service in an unlimited (ie. without limitations)manner then don't cry when they take you up on it. : p