ATT_Term_APA[1]

ATT_Term_APA[1] - AT & T DECISION TO MOVE AWAY FROM UNLIM...

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AT & T DECISION TO MOVE AWAY FROM UNLIMITED DATA PLANS 2 Author Note This paper was prepared for Business Administration 230, Section 01 taught by Professor Eric Rhodes, J. D.
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AT & T DECISION TO MOVE AWAY FROM UNLIMITED DATA PLANS 2 Abstract In an extension of research explaining why AT&T has ceased selling unlimited data plans for smartphones and Apple iPads and implemented monthly data limits, this present study examines the reasons for this change. Wireless companies globally are struggling to maintain the capex levels required to keep up with the exponential growth in data traffic, affecting the experience of the end user. A poor user experience translates into an increased service abandonment rate. More important, however, are the changes that operators will have to make to their service plans in order to achieve their dual objectives of increasing the revenue derived from existing data users and attracting new and voice-only users to data plans. We have found that unlimited data plans are not sustainable in the long term, as they cap spending while usage continues to increase.
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AT & T DECISION TO MOVE AWAY FROM UNLIMITED DATA PLANS 2 Our reviews of research on bandwidth and demand have concluded that operators have analyzed the evolution of pricing for mobile data plans and the impact on subscriber adoption and usage levels. It begins by reviewing the evolution of data plans to date and highlighting the limitations of existing plans, particularly the “all you can eat” model. We then provide examples of why AT&T believes that data plans must evolve in order to address two key objectives of operators: increasing spending from existing users and attracting new users ( Global Telecom Insider / Vol. 2, No 2, June Edition) . Most cell phone company use catchy slogans, and low introductory rates to lock in their customers. The most eye catching deal is unlimited everything, minutes, text, and data, but in the coming months everything unlimited will be no more. Carriers are building out long-haul network capacity like it was 2001, but they are not going to break the bank this time around, according to a report out today from TeleGeography Research. The firm’s Global Bandwidth Research Service says the growth in submarine cable and long-haul transport capacity is in response to a 64 percent surge in international bandwidth usage last year. Higginbotham (2009) found the following, more than 60 percent of U.S. network operators surveyed will light new fiber on their network in 2009, and there are 16 planned undersea cable projects for 2009. That’s more than the number of cables laid in 2001, during the peak of the submarine cable investment bubble. This time around it will be cheaper, too, with the firm estimating the planned cable construction will cost $2.6 billion compared to $13.5 billion spent on systems back in 2001. The build out in undersea optical cables should be viewed as a
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This note was uploaded on 07/13/2011 for the course ACCT 232 taught by Professor Hawk during the Spring '11 term at HCCS.

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ATT_Term_APA[1] - AT & T DECISION TO MOVE AWAY FROM UNLIM...

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