In a recent move, AT&T has reduced the speed it supplies to its heaviest users of data for the iPhone 4. Although customers thought they had an unlimited data plan, under a new policy, AT&T has started cutting their data speeds as part of an attempt to manage data usage on its network. Unlimited plans were discontinued by the company in 2010 and 17 million customers with “unlimited data” plans are now subject to throttling, representing just under half of its smartphone users.
1. In the article, what was the amount of data limit that the company set before throttling occurred?
2. According to the article, how many customers were affected by the policy last month?
3. Explain how the company might attempt a cost/benefit analysis of this policy. What components would you include regarding competitors?
Associated Press. (2012). AT&T Surprises Customers with Limits for ‘Unlimited data’ usage; heat is on “5 percenters.” The Washington Post, Feb. 13 (Retrievable online at http://www.washingtonpost.com/business/technology/atandt-surprises-customers-with-limits-for-unlimited-data-usage-heat-is-on-5-percenters/2012/02/13/gIQABFHHAR_story.html?tid=pm_business_pop)