Then there’s the whole network performance thing:

‘Verizon also can’t resist jabbing AT&T by asking “Why pay more for the 3G version and get 3G service on an overloaded network with limited coverage?” This bullet point, though, must have been written before the PC World article from last month was released. Much to the embarrassment of Verizon, the results from the latest carrier showdown reveal that AT&T’s network is passing with flying colors, while Big Red is showing a bit of strain under the load of Android.’

Here’s the rest: Verizon Touts Mi-Fi

Bottom line, the data thing in wireless is where the action will be and change will come – I just didn’t think we’d see it so fast. BTW – one of the comments in the first BGR piece wasn’t concerned about tiered pricing. Give it time, we’re going to see some real interesting iterations on pricing plans and there’s one thing for sure, they won’t be going down in cost. I’d jump on the Skype thing quick and encourage all my friends to do the same; the only way you’ll be able to drive your voice calls over your data plan is Skype-to-Skype. But then there’s Google Voice and they’ll be others.

Bob

Granted, there will be some kinks in the early stages like spotty adoption by network providers, some bad apps initially and some other limitations, but this is coming folks. (See my original post about Android and iPhones as SUVs for a more complete reference to this post.)

By adding network access options such as wi-fi, it will create pent-up demand for a whole new set of devices. Wi-fi hotspots will compete for your cell signal in order to sell you more with ads for free access. It’s just a matter of time before everyone figures out how to make money.

Remember, they can’t force you to make more calls, but they can lure you onto the web alot more with all that glitters… and that’s where the next cash cow is.

Click here for the story:     http://www.engadget.com/2010/02/16/verizon-to-allow-unlimited-skype-calling-over-3g-starting-next-m/

I wholeheartedly agree. Network providers don’t build networks to offer outstanding service; they build them to add new users and more importantly – revenue. User satisfaction is a happy coincidence. No? Compare the network maps of rural America with low income demographics and metropolitan areas where the cost of living is sky high. Network planners try to stay one half-step ahead of subscriber churn. It’s only when they start to see a shift in users that they budget their build outs.

It’s going to get real interesting when the vectors of net neutrality, Internet access, and user expectations finally come together in critical mass.

Data Overload Vs. Revenue

It’s not just about increasing revenue, say analysts. Carriers are banking on the consumer-friendly aspect: phones are more fun and useful with the Internet.

“The ‘naked aggression’ reason is to boost revenue to offset declining voice revenue,” said Charles Golvin, mobile analyst with Forrester Research. “But carriers also realize consumers won’t get the enjoyment out of their devices without data.”

But analysts caution that carriers need to be careful of data overload. 3G data networks are already in high demand from smartphone users, and smartphone usage was up 40% in 2009, according to an IDC study. AT&T has had well-documented 3G network troubles in New York and San Francisco due to the success of the data-hogging iPhone.

“Carriers are getting people to move to data, but they’re doing it cautiously,” said Lamas. “Rather than have everyone move to data immediately, they’re testing the waters and taking the people who can weather higher prices first.”

“Look how much revenue AT&T is getting from the iPhone,” said Golvin. “It’s easy for Verizon to make hay of AT&T’s problems, but it’s a problem that Verizon wishes it had.”

NOTE: AT&T announced it was releasing 6 Android phones at CES in January. Verizon and T-Mobile are working with multiple hardware manufacturers on newer Android devices. The multi-media device by Apple, the  iPad will be coming out in both Wi-Fi and 3G starting in March, so you do the math.

Bob

As an iPhone user who really enjoys its functionality and actually gets good performance; I’m really not interested in AT&T’s network congestion problems or what causes them. I pay my bill on time and don’t want to hear any whining about how 3% of the users consume 40% of the data usage. I simply bought what you advertised. (Technically, they were Apple ads, but remember that whole exclusivity thing?) Your job is to make sure it works. It all part of the bond you have with your customers. DO NOT try and blame me for your success. If you didn’t see this coming that’s your fault.