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AT&T On Data Throttling: Blame Yourselves
zacharye writes in with a story about Senior EVP of AT&T technology and network operations John Donovan's blog post detailing why customers with unlimited smartphone plans are getting throttled. "In an effort to justify its policies surrounding data service throttling for subscribers with unlimited smartphone data plans, AT&T on Tuesday issued a brief report regarding data usage on its nationwide wireless network. Senior EVP of AT&T technology and network operations John Donovan wrote on a company blog that data traffic on AT&T's network has grown a staggering 20,000% over the past five years. Usage has doubled between 2010 and 2011 according to the executive, due in large part to the proliferation of smartphones. AT&T sold more smartphones in the fourth quarter of 2011 than in any other quarter in its history. And because its smartphone subscribers use so much data, AT&T seems to suggest it has no choice but to put measures such as data throttling in place."
In one of the rare moments of clarity our federal government has, they told AT&T to spend some of the cash they wanted to use to buy out competition to expand their infrastructure instead (there was a link on slashdot a while ago).
Seems like they do have a choice, but aren't willing to do anything but screw their customers.
Is there no way to traffic shape over wireless? Why can't I choose between several "unlimited" packages with varying speeds, like I can with a regular wired ISP?
Wouldn't this solve their "problem" users issues? Or is there something about wireless networking that I'm not aware of making this difficult/impossible?
Take a dollar, divide it by 100, take two and call me in the morning.
Or, perhaps they could use a portion of the money they've obtained from their "staggering 20,000%" growth over the past five years to improve the network instead of lining their higher-ups pockets? You would think that since "AT&T sold more smartphones in the fourth quarter of 2011 than in any other quarter in its history" they would have SOME profit available to them for reinvestment?
Oh, but investing in your company's future means that your share-holders see less profits short term, and thus sell shares. It's really too bad that stock price is based on opinions and feelings instead of actual value...
Sadly, it's more profitable to increase prices and reduce service quality than to actually provide better services. YAY FREE MARKET!
The real abuse of consumer rights is that an "unlimited" plan even exists. Because of bandwidth overallocation, it's impossible for a company which promises unlimited bandwidth to actually deliver it to all its customers. Common sense says that tiered plans are the way to go. It's just that the marketing department found the term "unlimited" so sexy they overruled the engineering and accounting departments to be able to call their plans "unlimited". And as a competitor, how can you compete with your 1 TB plan when your competition is offering unlimited? You can't. You have to adopt their crappy marketing decision and label your plan as unlimited as well.
Now they're being hoisted by their own petard. The FTC should've cracked down on this a decade ago back when it first began, with wireless companies selling unlimited data plans but having secret data caps, which if you surpassed they would warn you and/or drop you as a customer. That practice has come under increasing criticism from the government, so they're now resorting to throttling. The root cause of the problem isn't that consumers are using too much bandwidth. It's that "unlimited" plans are snake oil. Yes I know that tech geeks love their unlimited plans (I'm on one myself). But be realistic - given your pipes to the Internet have a finite amount of bandwidth, can you think of any way in which you can make your "unlimited" plan truly unlimited? You can't. It's unlimited only as long as the bandwidth per customer * number of customers
So while the blame doesn't fall upon the customers who were sold and bought unlimited plans, neither do I think it's realistic for them (and me) to truly expect unlimited data.