AT&T CEO Regrets Unlimited Data Plans, Worries About iMessage
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Posted May 4, 2012 at 10:17pm by iClarified
AT&T CEO Randall Stephenson made some interesting comments about the iPhone and iMessage at a conference this week, reports The New York Times.
Stephenson said he wished the company had never offered an unlimited data plan for the iPhone and that he loses sleep over services like iMessage.
"My only regret was how we introduced pricing in the beginning, because how did we introduce pricing? Thirty dollars and you get all you can eat," he said in the on-stage interview at the Milken Institute's Global Conference on Wednesday. "And it's a variable cost model. Every additional megabyte you use in this network, I have to invest capital."
Notably, the switch from unlimited to tiered data has provided AT&T with $6.1 billion in data revenues during the last quarter alone.
It's not only data that worries Stephenson. He's also worried that iMessage could replace SMS services offered by AT&T.
"You lie awake at night worrying about what is that which will disrupt your business model," he said. "Apple iMessage is a classic example. If you're using iMessage, you're not using one of our messaging services, right? That's disruptive to our messaging revenue stream."
Over all, Stephenson said he didn't regret the decision to support the iPhone.
"I remember asking the question: Are we investing in a business model, are we investing in a product or are we investing in Steve Jobs?" Mr. Stephenson said. "The answer to the question was, you're investing in Steve Jobs. Let's go after this thing. And we went after it, and the rest is history."
Let's take a closer look at this:
You were the exclusive domestic wireless carrier of the iPhone for over three years.
For those years in exclusivity, you sold just a fraction of iPhone inventory, compared to Apple Stores each year, for the simple fact that you did not want to give commission to your own pressured, hardworking employees, especially when Apple salespeople can sign up contracts to new customers, collect activation fees, and sell accessories, all for free.
You increased the price of the unlimited data plan for users going from the iPhone 2G to the iPhone 3G, while no longer including the small text messaging plan.
You also forced all users who had iPhones, regardless of off-contract or hand-me-downs, into these data plans. You also refused to unlock the iPhone, regardless of legitimate reasons.
You sat back and collected the revenue from iPhone users, laughed at the other non-iPhone wireless carriers losing market share, and neglected your wireless infrastructure while ignoring the complaints of iPhone users who were having trouble making simple phone calls, to the point of public ridicule on late night talk shows.
Instead of listening to customers and using the revenue to build out your burdened infrastructure, you instead introduced two pointless PR campaigns, Seth the Blogger Guy and Rethink Possible, as a means to establish some sort of damage control.
You went from unlimited data plans to paltry tiered plans, with no limit of repetitive charges, for both iPhone and even new iPad 3G users, a month after its worldwide release.
For the loyal, early, and long-standing subscribers who bought into the unlimited data plan, you reward them by threatening them and throttling them at your own discretion.
You tweak your network speeds and demand that Apple call it 4G on their devices, just so you can compete with carriers who have moved to LTE or truer 4G bandwidth speeds.
You directly blame customers for all your offerings, which you now claim to be your mistake, and for them using your network in the manner it was intended.
You attempt to acquire T-Mobile, purposely mislead the FCC, FTC, the USDoJ, consumer advocate groups, the mass media, and the general public about practically everything to said acquisition, then after your surprise at its failure, you gloat at T-Mobile for laying off employees.
Even with your overpriced text messaging plans, you're surprised and complaining that Apple's iMessage service is distrupting your revenue stream. Note that RIM's BlackBerry Messenger (BBM) has been around for years using a similar internet-based infrastructure.
You pretty much represent everything wrong with Corporate America.
Am I missing anything? Are you still expecting violins yet? I certainly don't hope so.
What a joke. Yet another money hungry businessman that complains that he could have more. If he paid any mind to 'us' users, they might actually have a stronger client list. Instead, many consumers are leaving AT
First, I don't feel sorry for him one bit. Lying awake in one of his multimillion dollar homes. Big deal.
Second, people still pay for the Txt plan. In Fact! iMessage means less people use the sms service meaning they're paying for the service but not using it. That's better for them.
Third, the price scheme they have now is way way way too high. 4G costing extra, increased speed/access but decreased cap makes zero sense. Conflicting models like that should keep him up.
If ATT and Verizon mirror each other then how can they truly differentiate? Only by actual (or perceived) service, and att loses out.
"losing sleep cuz he's counting money all night" that's the real reason....and this ladies and gentlemen is my our world is turning to shit. Greed, and more love for objects rather then human life.
1 for unlimited att iPhone Internet
I'm amazed at the amount of hate people have for AT&T.
I've been with them for over 10 years, have 3 iPhones on my account, and never had a customer service issue with them.
So because you have never had a customer service issue, no one else has a reason to complain? Your experiences are the benchmark for everyone else? Not smart thinking.
Ass. You didn't plan on people using that much data, and thought it would be a great way to lure in customers.
iMessage taking away from messaging services? What's the actual cost to AT&T for each SMS? Nothing. Profits? Lots. iMessage will still use data that you are now trying to reign in for even more money.
I'm just glad they finally unlocked my iPhone.
Are you joking? Worried about what, being exposed that your bait and switch service actually tweaks users with unlimitied data plans after so many gbs are reached actually slowing the transfer of data to a snail's pace. While the worry is many folks being jammed with their 2 year contracts and the inability to pay their bill so you bang them even more of top of the equipment. Not that AT
I have 5 iPhones and the data usad last month was as follow.
Iphone #1 500 MB
iPhone #2 250 MB (most of the time on WiFi)
Iphone #3 1.5 Gbs
Iphone #4 2 Gbs
Iohone #5 3.1 Gbs ( throttled after exactly 3
I think the A tt ceo es full of crap
Montly payment $310.
I will swich when iphone 6 come out.