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  • AT&T CEO: We Never Should Have Offered Unlimited Data; and iMessage...?

    As it appears, AT&T C.E.O. Randall Stephenson had a lot to say this week about the company, and the iPhone. It appears that his choice to offer unlimited data in the first place, as well as the fact that Appleís new iMessage feature is biting into AT&Tís text-messaging earnings, is causing him lack of sleep at night. That, or maybe all the greed has gone to his head. The comments by Stephenson, recorded by the New York Times, are as follows:

    Quote Originally Posted by Randall Stephenson
    "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," he said in the on-stage interview at the Milken Instituteís Global Conference on Wednesday. "And itís a variable cost model. Every additional megabyte you use in this network, I have to invest capital."

    "You lie awake at night worrying about what is that which will disrupt your business model. Apple iMessage is a classic example. If youíre using iMessage, youíre not using one of our messaging services, right? Thatís disruptive to our messaging revenue stream."

    ďI remember asking the question: Are we investing in a business model, are we investing in a product or are we investing in Steve Jobs?Ē Mr. Stephenson said. ďThe answer to the question was, youíre investing in Steve Jobs. Letís go after this thing. And we went after it, and the rest is history.Ē
    AT&T once offered the unlimited data plan for most phones for only $30 per month, which is a very cheap price in comparison to the overpriced tiered data plans that are now plaguing cellular providers everywhere. Stephenson admits that he regrets offering the unlimited data plan because heavy data users take advantage of the unlimited data and donít get charged overages Ė this leads to less revenue for the company.

    While Sprint continues to offer unlimited data and plans to do so even beyond the release of the next generation iPhone, AT&T and Verizon have moved past unlimited data, offering very limited services for almost the same price as Sprint wants.

    Apart from his beef with the unlimited data, Stephenson trash-talked Apple iMessage as well in respects to the fact that it means less text messaging from AT&Tís end. AT&T offers an unlimited text messaging option, but also used to offer limited text messaging options, which people have been getting around with Appleís internet-based communication system. With the amount of Android phones out on the market today, it's not as if iMessage controls the entire messaging world (it is iOS-to-iOS only), which illustrates the C.E.O.'s true, greedy colors.

    All in all, while AT&Tís Stephenson appears to have a lot of issues with the way the iPhone is running the phone industry today in terms of iMessage and cellular data, there isnít much he can do about it as closing the iPhone out of AT&Tís phone options would kill the companyís revenue dramatically.

    As for Apple? They should just keep releasing these free, Internet-based features so AT&T canít make us pay for them!

    Sources: New York Times
    This article was originally published in forum thread: AT&T CEO: We Never Should Have Offered Unlimited Data; and iMessage...? started by Anthony Bouchard View original post
    Comments 83 Comments
    1. Assassination's Avatar
      Assassination -
      This CEO is money hungry!
    1. smith288's Avatar
      smith288 -
      Quote Originally Posted by spooneditr View Post
      Serves him right!! Damn bastard has so much damn money coming out of his ears. He can't sleep? What about people out there not sure if they can pay there next bill or dinner!?
      I dunno...maybe drop their expensive luxury iPhone plan and get a cheap clamshell plan? It must hurt to be so entitled. Jeez-us-H-keerist.
    1. H4CK3R's Avatar
      H4CK3R -
      They do charge a ton of money to iPhone users. And then they start questioning why people want unlocks? Really?