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Wednesday, July 21, 2010

Cell-Phone Carriers like AT&T and Verizon Killing Unlimited Data Plans


Cell Phone Carrier

AT&T killed its unlimited data plans recently due to large volumes of data, most probably from the Apple iPad. From $30/month for unlimited plan to $25/month for 2 GB of data bandwidth transfer per month for the Apple iPad. $20/month for iPhone limited to 2GB as well. For some it may seem like 2GB is enough, but it really depends on how often you use your data services. How often are you using your email?

Apparently, this bandwidth payment deal started around June 7th.

Engadget reports that Verizon will be switching to this limited data system soon as well (that they've hinted at for a while). No word or confirmation on pricing or whether it even will happen but Verizon will probably not miss out on this opportunity to make extra cash, especially if their biggest competitor is doing it.

This is where I'm glad I still use T-Mobile--I hope they won't follow these other company leads.

If consumers want to actually make a difference, they need to use their purchasing power to force these companies to get rid of these rip off offers. For example, all airline companies now charge $25 for the FIRST bag; Southwest doesn't, so it makes sense for consumers to start using Southwest. Similarly, we need to switch cell-phone carriers to unlimited plans to make those limited plan ideas crawl back under the rocks from whence they came.

The only way capitalism can work perfectly is through informed consumers who will punish those companies that find loopholes and ways to charge more money. Informed consumers like yourselves need to take a stand and switch to the competition no matter what. Another example, almost every cell phone company makes 2-year contracts; well then we should try to switch to providers who don't have any contracts (if they exist).

Consumer rip off

Unfortunately, most consumers are use to taking whatever is thrown at them and biting the bullet. Imagine the charge amounts when you accidentally download too many attachments (which sometimes automatically get downloaded if they are images). They already double the monthly charge when you accidentally go over your minutes.