The Problem With Tiered Data Plans

by Christopher Paul on February 24, 2012

TechDirt reported on a study which concludes usage among mobile users is the same whether their on an unlimited but throttled data plan or a tiered plan. That means, it’s about making more money. A fair strategy. But Mike Masnick warns this could backfire down the road:

The problem with a tiered or throttled data plan is that it actually makes the mobile data service less valuable. Not only does it cost more for the same usage, it adds mental transaction costs as users have to keep track of their usage. That’s only going to make people value alternatives much more.

Hotspots are first alternatives that come to mind. And with so many coffee shops, fast food places, book stores (those that remain), public parks, and even cable telcos offering free or really cheap Wi-Fi, there’s almost no need for a data plan Soon, there won’t be a need for a voice plan either.


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