Why Are Wireless Users Paying More, Getting Less? - Carriers trying desperately to keep profit party going in face of openness…


It’s looking to be an interesting week in wireless broadband, with Verizon ditching contracts (sort of), T-Mobile launching the first Android OS phone, and Sprint finally taking the wraps off of their mobile WiMax service, Xohm. With the excitement over wireless connectivity heating up, Business Week proclaims that wireless carriers are struggling with the demand for bandwidth. Odd, given that just last week, AT&T admitted that iPhone bandwidth usage was considerably less than what they prepared for. GigaOM’s Stacey Higginbotham correctly hits upon the reason wireless prices remain high and your choices remain limited, as carriers lament the state of network capacity:

The real reason carriers are limiting services and charging more is to maintain control of what people can do on their networks. Carriers, especially in the U.S., are trying to avoid becoming dumb pipes. Efforts such as limiting P2P on wireless networks and capping data use at 5 GB per month are attempts to keep the barn door shut before the horses run out. It s too late for broadband access through DSL or cable, but a variety of factors, from limited spectrum to the early nature of 3G, means wireless broadband could stay under carrier control for years to come.

Carriers whose record profits are thanks to the fact they can charge forty cents to transmit a 140 byte file aren’t going to go gently into that dark, open access, neutral network night. Expect the same bandwidth capacity scare stories we’ve seen from terrestrial operators to dominate the wireless sector — as the idea of fabricated scarcity helps justify draconian policies and high prices. How much are you paying for wireless broadband (usually with a 5GB cap) from your mobile phone operator? Do you think you’re getting your money’s worth?
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Posted in: DSLReports | 22 September 2008 | by: admin #130

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