Once I calmed down I tried to understand what motivated such a desperate move ...
See also:
[1] If Apple were to make iMessage available as an app and independent of texting we'd go that way; we're still exploring options.
[2] AT&T is required to do that on request. They don't like to admit it's possible. Say you want "administrative texting only". We also dropped a $5/month "Smart Limits for Wireless" plan because that is useless with smarphone accounts. There are other responses that AT&T won't like. As long as we have to pay a data plan, we might as well get a contract too. That redirects AT&T's revenue to Apple, and let us make money by selling either the new or older phones.
When I wrote that I hadn't read a GigaOm post from 11/3 ...Gordon's Notes: AT&T and the mandatory iPhone tax - even out of contract phones must payFor about two years my son has used my old iPhone on our family plan. He has never had a contract and he doesn't have a data plan. The phone is configured not to use cellular data...Today AT&T enrolled him in a mandatory data plan because "he has a smartphone". His text messaging stopped working, perhaps because his cellular data was turned off...... [I think ... ] They are preparing for the end of their text messaging revenue stream.
They figure they can hold onto voice for a while; longer than most of us think. They do, however, expect Apple, Google, Facebook and others to steal text messaging. So in the short term they're getting as much money as they can out of text messaging, while ensuring every single customer has a data plan...
Operators better say goodbye to the SMS cash cow — Broadband News and Analysis
... The carrier cash cow of SMS text messaging is on the wane, driven by third-party messaging apps that include BlackBerry Messenger, iMessage, Skype and others. The trend was highlighted Thursday by Wireless Intelligence, which used data from Dutch mobile operator regulator OPTA ...
According to OPTA, the total number of SMS sent in the Netherlands stood at 5.7 billion for the first six months of the year, down 2.5 percent from 5.9 billion in 2H 2010, even though total SMS revenue rose slightly (0.6 percent) to EUR378 million during the period.,,,
... This year, AT&T changed its messaging plans to push new subscribers into an all-or-nothing price plan where they pay per text or pay up for unlimited. The bet is most people who weren’t on unlimited plans will find themselves paying more or getting stuck with insanely high bills for sending a few too many texts.
... That’s how AT&T is squeezing out the last bit of value from its cash cow, but it’s undoubtedly aware that such draconian measures or too-high-rates on the unlimited side might push people over to the third-party apps even faster. The downside to most of those apps is that users have to make sure their friends are also on the service, which can be complicated. For carriers, the downside is they are trading high-margin texting revenue for barely profitable data use.
So expect more texting and data plan changes, and a continued focus on machine-to-machine communications, as well as more apps that try to make third-party messaging across different platforms easier...Turns out we're right on target then, because our response to AT&T's mandatory data plan/cost increase is to drop our $30/month unlimited texting plan (offsets price increase exactly) and switch to a combination of Facebook Messenger and Google Voice while disabling all texting [2]. As predicted, AT&T's moves are accelerating customer migration from their most profitable revenue stream.
See also:
- Gordon's Tech: Testing Facebook Messenger as a texting alternative (4 and 3G)
- Gordon's Tech: AT&T Smart Limits for Wireless is almost worthless
- Gordon's Notes: AT&T and the mandatory iPhone tax - even out of contract phones must pay
[1] If Apple were to make iMessage available as an app and independent of texting we'd go that way; we're still exploring options.
[2] AT&T is required to do that on request. They don't like to admit it's possible. Say you want "administrative texting only". We also dropped a $5/month "Smart Limits for Wireless" plan because that is useless with smarphone accounts. There are other responses that AT&T won't like. As long as we have to pay a data plan, we might as well get a contract too. That redirects AT&T's revenue to Apple, and let us make money by selling either the new or older phones.
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