Users Want Unlimited Mobile Broadband Plans, But Carriers May Not Want to Offer That

A Sanford Bernstein survey finds that users prefer unlimited data plans on their devices, despite AT&T’s insistence that most users consume under 1 GB of data per month. However, according to Sanford Bernstein analyst Craig Moffett, carriers who aren’t moving towards finite tiered data plans–like AT&T has done–can use this as a value proposition to entice users to their network. But carriers who do this also run the risk of wearing down their networks, warns Moffett. “At the same time, however, carriers who maintain unlimited pricing in the face of AT&T’s move to usage-based pricing could self-select to the heaviest users, impairing future profitability.”

News of consumers wanting unlimited data is nothing new as it just confirms recent trends and what we’re already seeing in the industry. Verizon and Sprint have both said that they will evaluate the market, with Verizon more committed to a tiered data structure when the carrier launches its 4G LTE network. T-Mobile, the fourth largest carrier in the U.S., is still keeping a 5 GB monthly cap, and users who exceed 5 GB will not be charged overages. Rather, the carrier will just throttle down mobile data speeds.