Change Is In The Air

Yesterday Todd wrote about changes T-Mobile is making with their WEBCONNECT pricing. WEBCONNECT is T-Mobile's mobile broadband service for notebook computers that works with USB adapters or as a data only service on smartphones. The key to T-Mobile's change is an elimination of a 5 GB cap on the data you can transfer for a monthly fee, instead T-Mobile plans to address overuse by slowing down data speeds for the remainder of the billing period after the 5 GB data transfer amount is reached. In a piece that Joel Evans wrote for ZDNet, Joel shares that T-Mobile told him the speed throttling will alow web browsing and e-mail but will prevent streaming audio and video. What I find encouraging is that mobile carriers are changing their plans to make wireless data more affordable. Even with a 5 GB cap, T-Mobile's $39 monthly price for mobile broadband is significantly less than similar plans from AT&T, Verizon, and Sprint. If T-Mobile sold a Mi-Fi like device I would seriously consider buying one with WEBCONNECT even though T-Mobile has the lowest 3G data coverage in the United States. It is also likely that this change is a prelude to an upgrade coming to T-Mobile's network this summer that will dramatically increase the speed of its Internet access. Of course, the challenge is that T-Mobile knows with $39 per month being lower than most cable and DSL services, some people may decide to use WEBCONNECT as their only Internet access and that would put a strain on their network. To somewhat protect their network T-Mobile is souring the plan a bit with the speed throttling. Some day soon, though, the carrier networks will reach the capacity to support our full Internet needs and then we will finally see real competition for Internet access. While T-Mobile is addressing data caps and price, AT&T's 3G service plan for the iPad is introducing the idea of pre-paid, low price mobile broadband that you manage right on the device. To my knowledge there is no other data plan that allows you to turn service on or off with no penalty and provide truly unlimited data transfers for only $30 per month. Now, it is true that the service is restricted to a specific device, but with that device one can do almost as much on the Internet as they do on a computer. To me the iPad 3G is more about low cost and flexible mobile Internet access than tablet computing. I have got to believe that Verizon and Sprint are watching what T-Mobile and AT&T are doing to see how well they are received. Sprint is pushing its 4G wireless Internet service and will start selling the first 4G smartphone, the HTC EVO, very soon, but the service retains the 5 GB cap and high monthly price. If either T-Mobile or AT&T have success then Verizon and Sprint may make similar changes, hopefully with an overall result of lower wireless Internet access. Why does that matter? When was the last time the cost of your home Internet access went down?

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Change Is In The Air

Frank McPherson

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Frank McPherson