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U.S. carriers are desperate to keep ARPUs from falling even as voice usage plummets in the face...

U.S. carriers are desperate to keep ARPUs from falling even as voice usage plummets in the face of growing text messaging and e-mail use. Their solution: phase out calling plans that offer a bundle of minutes in favor of more costly unlimited plans. AT&T (T) and Verizon Wireless (VZ, VOD) both reported Y/Y declines in voice revenue in Q1, though this was offset by higher mobile data revenue. AT&T's CEO recently suggested the industry would eventually see data-only plans.
Comments (3)
  • hdweiner
    , contributor
    Comments (224) | Send Message
     
    Cable providers will eventually move to the same formula. Instead of a group monthly price for a triple play (phone, cable, and internet), you'll pay a single price for a bucket of bandwidth. You can use that bandwidth for telephone calls, messaging, downloading/streaming audio/video, and internet access.

     

    The providers like the transparency bandwidth-only pricing provides, but it's a road that only leads to labeling--and charging--higher charges based on the importance of the data packets you send and receive. Streaming anything will cost more than downloading. Telephone bandwidth will cost more than bandwidth used for messaging.

     

    Remember, only Comcast is climbing the vertical to control content. Everyone else is selling pure bandwidth. If all bandwidth features one price that does not reflect use and importance, then they'll leave money on the table. We want things now, and we're often willing to pay for promptness.

     

    The more you use, the more you'll pay. The faster you want it, the more you will pay. Want stability (streaming, telephony) with no pauses or breakups, the more you'll pay.
    5 Jun 2012, 06:34 PM Reply Like
  • dividend_growth
    , contributor
    Comments (2878) | Send Message
     
    This development bodes well for continued migration to smartphones
    5 Jun 2012, 11:18 PM Reply Like
  • papertiger
    , contributor
    Comments (10) | Send Message
     
    I hope wireless carriers offer their customers more choices: data only, family shared data plans as soon as possible. It's a change we need.
    6 Jun 2012, 11:40 AM Reply Like
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