Randall Stephenson, AT&T’s CEO, has admitted in a recent interview that the carrier didn’t carefully consider the implications of offering an unlimited data plan for iPhone customers. If the carrier hadn’t come up with this offer, maybe the revenue would have been substantially larger.
By allowing heavy data usage on its networks for customers who pay fixed amounts, the carrier is essentially bleeding money. More disturbing for them is that non-frequent users are forced to subsidise the costs of others’ unlimited plans, since the carrier needs to get money from someone.
“My only regret was how we introduced pricing in the beginning, because how did we introduce pricing? Thirty dollars and you get all you can eat,” said Stephenson. “And it’s a variable cost model. Every additional megabyte you use in this network, I have to invest capital.”
To make matters worse, Randall Stephenson has admitted losing sleep over Apple’s services that surpass the ones offered by carriers – such as iMessage, that allows iPhone users to send free texts. He believes that Apple is launching services that are disrupting carriers’ businesses.
Source: NY Times