<A> AT&T Premiers Flat Rate Pricing for Wireless Data Service; New Wireless IP Rates To Provide Unlimited Local or National Access
KIRKLAND, Wash.--AT&T today introduced new monthly flat-rate pricing plans providing unlimited wireless data transfer for a variety of applications -- including wireless e-mail, remote LAN, and corporate Intranet access -- for mobile computing customers.
The aggressive new plans ultimately simplify wireless data pricing and allow AT&T customers to better anticipate monthly usage costs with no surprises. The two new plans include Local Unlimited, a monthly rate of $54.99, which carries an additional $0.05 per kilobyte roaming fee when users are outside of markets where AT&T operates wireless IP service, and National Unlimited, a monthly rate of $64.99 with no roaming charges.
Wireless IP (also known as CDPD or Cellular Digital Packet Data) rates historically have been based on a variable charge for each kilobyte of data the customer transmits over the network.
"This is the second bold pricing move in a month for AT&T. We put a major stake in the ground with the introduction of Digital One Rate service: a single, all-inclusive rate for wireless voice customers. Now we are taking a similar step with these unlimited pricing plans for our wireless data customers," said Kendra VanderMeulen, senior vice president and general manager of the AT&T Wireless Data Division. "Our customers need simplicity, practical solutions and value for their money. They're getting it all now at unprecedented levels -- with a combination of great voice and data services, rates and coverage, only from AT&T."
The new rate plans are designed for customers who use a wireless IP-compatible modem with their laptop, hand-held computer, PDA, or a specialized portable computing device. The Local Unlimited plan will appeal to customers who use their wireless applications mainly in their local AT&T wireless IP markets. The National Unlimited plan is designed for frequent travelers who need wireless access to information from various locations across the country. Both unlimited plans will benefit customers who, on average, send and receive at least one 1 MB of information wirelessly a month, or whose usage level varies monthly.
"Flat-rate pricing offers a user the ability to accurately budget for communication needs," said Roberta Wiggins, director of Wireless Mobile Communications at the Yankee Group. "With remote access to data becoming an increasingly vital tool for mobile professionals, AT&T's new data pricing plan allows the user to utilize their investment in wireless technology with less regard to access costs. This is a definite step in the right direction."
The plans are available to customers with a service address in one of the 48 U.S. markets where AT&T operates wireless IP service, including major business centers such as New York City, San Francisco Bay Area, Dallas-Fort Worth, Minneapolis, Miami, Denver and Seattle. Local and National Unlimited plan customers will be able to use their service in all wireless IP coverage areas operated by AT&T Wireless Services, as well as 56 additional markets where AT&T is interconnected with other wireless IP carriers.
The new rate plans are effective immediately. Subscribers to either new plan will incur a one-time $45 activation fee for each subscriber unit.
Each activated subscriber unit requires a minimum one-year service term.
The Wireless Data Division of AT&T Wireless Services develops wireless data communications networks that meet the entire spectrum of business data communications requirements, from messaging, data entry and dispatch, to file transfers and interactive computing. Customers can contact the Wireless Data Division at 1-888 DATA-ATT (328-2288), ext. 164, or at the AT&T Wireless Web site at www.attws.com and click on the wireless data icon.
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Oranges and nectarines (OK, maybe grapefruits), but this does give SOME reference for the value of business data service (and this isn't even broadband!). Most line revenue projections (for WCII, and I presume for TGNT) that I've seen are in the $70s/month range, and this is inclusive of local and LD. I think these line revenue projections are WAY low (several analysts agree with this point). Initial business xDSL numbers are being put out in the several to many hundreds of dollars per month, and this does NOT include local LD and IXC. Granted, these prices will likely come down some, but they will STILL be for LOW END broadband (1-5 Mbps).
Just thought I'd make this point as current DCF models (which yield $60-90 EOY targets for WCII) are NOWHERE near these kind of broadband data figures. And having had this discussion with a good number of the WCII analysts, the hesitancy seems to be their discomfort in presuming these kinds of dollars for broadband data - since we don't really HAVE much of a current market to justify them. And I KNOW these analysts aren't really familiar with datacom and the projection research. |
