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AT&T Should Be Investigated For 'Fraudulent' Data Policies, Says PK

zacharye writes "AT&T on Monday announced a new plan that will let developers pay for the data used by their apps and services. The data consumed by apps that make use of this new feature would not apply toward a user's data cap. The new service was pitched as a way for content providers to ease customers' growing concerns over wireless data usage, however one public interest group sees the feature as a slap in the face to AT&T subscribers. 'This new plan is unfortunate because it shows how fraudulent the AT&T data cap is, and calls into question the whole rationale of the data caps,' Harold Feld, legal director of Public Knowledge, said in a statement. 'Apparently it has nothing to do with network management. It's a tool to get more revenue from developers and customers.'"

4 of 138 comments (clear)

  1. AT&T Investigated by Anonymous Coward · · Score: 5, Insightful

    I don't need to read more than "AT&T Investigated" in order to agree.

    That is all.

    Hang'em high.

  2. So now AT&T is saying it's NOT a capacity prob by DickBreath · · Score: 5, Insightful

    So all the bandwidth everyone needs is actually there? The data caps were just a ruse to get more money for it.

    Since people balked, even sued, AT&T now proposes that maybe developers could pay the difference.

    That is telling. It means the bandwidth necessary for, say, Netflix never was a technical problem. It's just that AT&T looked at the fact that they are just a dumb pipe and AT&T wanted more money for valuable content traversing its network. It's the Net Neutrality problem all over again.

    --

    I'll see your senator, and I'll raise you two judges.
  3. It takes a while for the obvious to sink in by tkrotchko · · Score: 5, Insightful

    " 'Apparently it has nothing to do with network management. It's a tool to get more revenue from developers and customers.'"

    To use a phrase, "Well, DUH!".

    If you had looked in AT&T Wireless's annual reports for the past two years, they never indicated they were reaching any sort of limits on their network.

    So either they were lying to their shareholders or to a gullible press and public.

    Which is more likely?

    --
    You were mistaken. Which is odd, since memory shouldn't be a problem for you
  4. Will Someone Think of the Developers! by robwgibbons · · Score: 5, Insightful

    At first glance, this seems like a good idea for the consumer, but for smaller, independent and boot-strapped developers (from whom most of the innovative products come) this is basically a nail in the coffin. The only reason the Internet is as innovative as it is now is because any Joe Schmoe with a great idea, some time on his hands and a deep willingness to learn can get his software into hands of millions of people and literally disrupt industries.

    Allowing a company to pay for their users' data usage seems like a great idea for consumers, at least in terms of immediate monetary value. Google or Pandora can pay for my data usage and I can consume all I want.

    The real problem is that this allows large, well-funded (and probably stagnant) software companies to completely crush smaller, less well-funded companies who have innovative or disruptive ideas. Who's to say You and I don't have a great idea together and want to compete with Pandora? Oh that's right, they have millions in investment capital and we only have time and development skills.

    This is the same argument as allowing certain websites to pay extra for faster Internet speeds. Sounds like a great idea on paper, especially for consumers in the short-term, but in the long-term it will harm the entire industry in general by stifling creative innovators.

    In the end, whoever has the most money wins.