AT&T CEO Regrets Offering Unlimited iPhone Data
AT&T’s CEO Randall Stephenson, in some surprisingly candid remarks, has stated that offering unlimited iPhone data was a mistake and that he loses sleep over iMessage, Apple’s internet-based messaging service, a service that is cutting into the company’s revenue stream.
According to the New York Times, in remarks at the Milken Institute’s Global Conference in Los Angeles today, Stephenson stated very plainly that his “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 also went on to say that “it’s 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,” said Stephenson. “Apple iMessage is a classic example. If you’re using iMessage, you’re not using one of our messaging services, right? That’s disruptive to our messaging revenue stream.”
And while Stephenson said that he regrets ever offering unlimited data for the iPhone, he says that he does not regret carrying the smartphone itself saying that it moved the mobile industry toward the data driven model that it has in place right now.
AT&T got rid of unlimited data for the iPhone and its other devices back in 2010, however, some customers still remain grandfathered into unlimited data plans, something that has been a point of contention in recent days.
An iPhone user took AT&T to court claiming that the carrier unfairly throttled his data after advertising an unlimited data plan. Surprisingly, the iPhone owner won and AT&T had to dole out $935 in a settlement.
The court case was likely the catalyst for the carrier to finally reveal its data throttling policy.
Back at the beginning of March, AT&T finally made its throttling policy public and announced that those grandfathered on an unlimited data plan were subject to a 5GB threshold with a 4G LTE data plan and 3GB when using HSPA+ 4G or 3G.
iMessage was introduced in 2011 with iOS 5 and it has replaced traditional text messaging for some users. Because it’s free, the service has cut into the revenue streams of mobile providers, something that clearly spawned Stephenson’s comments today.
Apple’s iPhone, as it stands, is currently the best selling smartphone on AT&T.