As Mobile Masters we spend a lot of time talking about mobile applications, wireless data security, backend connectivity, etc. One of the things we do not discuss often enough is the cost to an enterprise for all of the wireless data bandwidth that is being consumed, and more importantly, the cost of all of the wireless data bandwidth that will be consumed as enterprises deliver ever increasing mobile capabilities – especially video streams. This sort of topic will usually fall under the discipline of enterprise wireless expense management, but let’s think about it at a higher level; you know, just a bit higher up in the thought cloud than where the actual bean counters sit – I mean absolutely no disrepsect to any bean counters what so ever in saying this!
I’m writing about this as a result of finding myself on my commuter train just the other day sitting next to someone who is responsible for figuring out just this sort of wireless data bandwidth cost thing at his place of business. The conversation started with, ‘So, you have a BlackBerry Torch – no iPhone or Android for you?’ To which I replied, ‘Well, yeah, I’m a long time BlackBerry user…’ The conversation somehow threaded its way to my talking about RIM’s extremely efficient use of enterprise wireless bandwidth through BES/MDS, and led in turn to talking about the profligate use of data bandwidth by iPhone users.
All of this bandwidth talk, in turn, led us to talking and thinking about the latest AT&T-Verizon developments…
As a consumer, whenever that magical time arrives when your most recent two year contract with your wireless carrier of choice is up for renewal, you ultimately discover that you don’t have all that much negotiating power: pick a new phone, and pick a new data plan – but no longer an unlimited plan with AT&T (unless you are grandfathered in, as I am) and various other carriers – and then manage it up or down as usage requires – something usually discovered ‘and managed’ while staring in shock at your latest wireless phone bill.
Enter Verizon – which, as everyone knows, is finally launching its own iPhone. But there’s more – Verizon is also now launching a new unlimited data plan. In response, AT&T has just announced its new lowest end, $15 data plan. Talk about living at opposite extremes.
Some of us have thought – based strictly on the strength of being able to use an iPhone that makes use of Verizon’s 4G/LTE wireless network – that AT&T is not really likely to lose all that many current iPhone customers to Verizon. Throw in an unlimited data plan, however, and the underlying value of switching suddenly changes dramatically. The personal consumer equation becomes unbalanced enough in Verizon’s favor that we may very well end up seeing a sizable subscriber shift from AT&T to Verizon after all.
The truth of the matter is that no matter how much AT&T suggests that not having an unlimited data plan helps the consumer to better manage costs and ultimately save money, we all know that the allure of the unlimited plan is a significant one. In fact, my unlimited and grandfathered in data plan with AT&T acts as a set of golden handcuffs…or at least it does until my next contract renewal.
Will AT&T find itself needing to reverse itself on eliminating the unlimited plan? Or will it double down and wait for Verizon to realize that unlimited plans are likely not economically sustainable (outside of assisting in a subscriber landgrab)?
Users Like Enterprise Data Plans
In a previous blog post I noted a survey that strongly suggests that mobile enterprise employees love making use of enterprise-sponsored data plans. Given this, I asked my fellow commuter if he thought that the Verizon-AT&T scenario that is now unfolding would or could create opportunities for enterprises and SMBs to either negotiate or re-negotiate large scale enterprise data plan contracts and get better deals both for themselves and for their employees. His answer was an unequivocal, ‘If not now, when?’
It will be very interesting to see if such enterprise negotiations will – with Verizon serving as the motivator and catalyst – force AT&T to bring back the unlimited data plan for enterprise employees to take advantage of. Individual consumers can only vote with their feet…by changing carriers. Enterprises, on the other hand, can indeed negotiate. Indeed, if not now, then when?
I will be very interested to hear from fellow Mobile Masters on this front. Let us know your thoughts and your positions here!
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Tags: AT&T, BlackBerry, Data Plans, Enterprise Mobility, iPhone, Mobile Observatory, Tony Rizzo, Unlimited Data Plans, Verizon
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