High Data Users Cut to 2G Speeds on High Usage

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AT&T has recently stopped its unlimited monthly data plans and now gives users data plans with caps on usage. AT&T has gone a step further by sending SMS messages warning of decreased speed due to high data usage in any particular month to those smartphone users who fall in the top 5 percent of the users of data in its network. And for the remainder of the month or the billing period their gadgets will only work in 2G data speeds.

Why AT&T Goes For Data Caps?

But users never expected throttling of data in the AT&T network. Sources at the company say that this is just a temporary decision and will be scrapped once the improvements that they have planned for the network are complete. AT&T has banked on the acquisition of T-Mobile and uses its network to revamp its swindling network, but now that does not seem to be on the track since the Federal Communications Commission (FCC) approval is still pending. On top that there is a lawsuit that needs to be resolved in the Department of Justice, according to the Forbes magazine.

The Future Not Looking Good For AT&T

AT&T has fallen in consumer satisfaction indexes. And the fact that Verizon and Virgin Mobile also having a cap on large data users on a monthly basis has not helped the cause of AT&T. The data throttling, though temporary, may adversely affect the user base of the mobile network.

Meanwhile, the two year iPhone 4 contracts from June 2010 are nearing expiration in the next six months. Also, Apple Inc. is likely to introduce iPhone 5 in the middle of the next year and iPhone 4 users will be told to upgrade. Hence, AT&T is running the risk of losing customers to other mobile networks, or rather to more stable and advanced data networks.

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Category: Tech News

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