Carriers blame the iPhone for data caps and increased upgrade fees

http://www.bgr.com/2012/08/06/iphone-data-caps-upgrade-fees-att-verizon/

by zacharye • 14 years ago

15 15 14 years ago

It is so frustrating that these carriers continue to have such a strong hold on customers. They are true monopolies and their desire to have their bottom lines raised is obviously more important than any type of innovation on the technology front. Eventually I think we'll see the same breakup/restrictions of these large carriers in the same way AT&T's land lines were done.

mgkimsal• 14 years ago

"To hear the carriers tell it, the iPhone is a major inhibitor to their profits as last year they were “only” generating wireless service profit margins in the 38% to 42% range."

It would seem pretty simple then - stop carrying and supporting the iPhone, and they would have higher profit margins. This is basic math. If they want higher profit margins, drop iPhone.

Wait... what? They want higher profit margins and higher revenues? Perhaps those days are slipping away, and they may have to deal with higher revenues and 'only' 20% profit margins.

Uh oh - what if that happens? We'll stop seeing all the innovations from carriers we've seen over the past 20 years like...

Oh yeah, we haven't really seen any. SMS spam? That's been the only change in my wireless life I can directly attribute to wireless carriers, other than wireless service itself. Is there anything else I'm missing?

untog2• 14 years ago

We'll stop seeing all the innovations from carriers we've seen over the past 20 years like... Oh yeah, we haven't really seen any.

I don't want to be in the position of defending the cellphone networks too much, but things like 3G and LTE upgrades to cell towers aren't easy or free. Neither were the 4G auctions.

hifoo• 14 years ago

Profit is calculated after capital purchases are taken into account. The profit margins should include the amortized costs of the tower upgrades.

SchizoDuckie• 14 years ago

This problem will solve itself (at least in europe) now that 'share your broadband and you can use other people's shared broadband connection' schemes are popping up everywhere.

The telco's have had a monopoly position for too long. The consumer does not care if his call is routed over the internet, skype, broadband or 3g, he just wants his connection, and wants it cheap.

Data limits and increased prices are not the way to solve this, evolving the infrastructure is.

And don't tell me they need to make huge investments. They've got a vastly automated infrastructure and millions of customers that they're leeching off monthly.

jiggy20112• 14 years ago

My router has built in software to participate in these broadband sharing schemes but frankly they scare the shit out of me, so I don't touch them.

Firstly , I'd be amazed if the TOS for my from most domestic ISPs actually allow you to "resell" your connection in such a way.

Secondly what happens if somebody uses your connection for nefarious deeds, how can you prove it wasn't you?

mmoche• 14 years ago

How can they prove it WAS you? This is why it makes sense to avoid locking down a connection. If someone breaks in and does something illegal, you'll have a much tougher time proving it wasn't you than with a wide-open network.

jfoutz• 14 years ago

37 million phones in Q1. $30/month for data. Seems like the billion dollars a month could help offset some of those expenses.

benologist• 14 years ago

More BGR spam.

http://online.wsj.com/article/SB1000087239639044354550457756...

Carriers blame the iPhone for data caps and increased upgrade fees

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