Friday, May 15, 2009

AT&T's mobile broadband house of cards - FierceBroadbandWireless

May 14, 2009

It has to be an unsettling week for AT&T Mobility. Looking to put a more aggressive stake in the mobile broadband market, competitor Verizon Wireless introduced a new netbook and dropped its overage fees for its $60 and $40 mobile broadband plans, from $.25 per megabit to $.05/MB and $.10/MB. And the $40 plan has seen its data usage limit increase from 50 MB to 250 MB.

In comparison, AT&T Mobility offers a 5 MB cap on its $40 plan and charges some steep overage fees: about $1/MB as an overage rate for its $40 plan and $.51/MB for its $60 plan. Analysts predict Verizon's new moves will prompt AT&T, which is by far the most aggressive at subsidizing laptops and netbooks, to change its mobile broadband pricing and overage fees...