Before you go postal on AT&T, let’s take a look at what this could ultimately do. Let’s say NBC creates an application that lets any user of the app stream NBC and its affiliate channels to their phone or tablet. On the end-user side, we know that streaming is great, but often times are hindered due to tiered data plans or throttled limits. Instead of picking the app up for whatever the cost is or subscribing to NBC service, you skip it and suffer. That leaves a hole in NBC’s potential streaming customer base because of carrier data restrictions.
AT&T is looking to offer developers a flat rate data use charge that would allow that specific application unrestricted access to the network for connection. That rate could be whatever AT&T wants to set it as, but we could say $0.01 per MB. Ultimately this would let you have unlimited access to said application and the time spent streaming would not count towards your data plan.
It sounds like a pretty descent idea, but there are many issues and factors to consider. The app developer would need to decide if the app would be free, free with a monthly service subscription like Netflix or Hulu, is a paid app with free service or paid app with paid service. After all, they aren’t going to just pay your data charges out of their own pocket. The profit margins would all be relevant to the number of active users and how heavy those users use the applications though. There is one other issues that could very easily kill this idea. If AT&T is already throttling unlimited users because they are “slowing down the network” wouldn’t having an application that ultimately slowed down the network work against AT&T and what they are already doing?
It could be a win for app developers in the long haul, but I fear it would put greater strain on a network that is already trying to duct tap its self together.
Source: WSJ via IntoMobile
