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As broadband and telecom providers feel the squeeze of high bandwidth, some have toyed with the idea of moving away from the one-size-fits-all model of unlimited bandwidth towards tiered pricing, which would put limits on how much information could be transmitted in a single month. But despite rumors to the contrary, AT&T has denied they will take these steps with the iPhone.
"We have not made any decision to implement tiered pricing," AT&T Mobility President Ralph de la Vega says in an interview with BusinessWeek,adding that AT&T is in the midst of researching multiple options to deal with the growing problem.
The iPhone currently generates over half the mobile web traffic, but as more technologically proficient mobile web browsers arrive on smartphones, the traffic hitting the mobile web is due to increase exponentially over the next few years. AT&T has already taken hits from the bandwidth bottleneck created by the iPhone, so creating some type of strategy is definitely a good idea. However, a strategy centered around trying to decrease the data consumed by customers is a plan doomed for failure. Cloud computing is pushing the web towards mobile freedom, which means more and more bandwidth will be sucked up by smartphones.
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