Those currently under the Unlimited Data plan are not in harms way as it is a contractual agreement. However, if you wish to upgrade from a 3g to 4g device (4th Generation Wireless Communication Standards) you are then forced to sign a new contract attaching yourself to their tiered system of 4g data rates. Effectively marking up the price of access to the internet, and allowing those who are able to afford it, a better connection.
Now this phenomena of a corporation trying to extort its customer base for access to the internet is not new in the least. Earlier this year, Canadian ISP's attempted to switch the population's internet access from computers, phones, etc from a monthly static fee, to a metered service where you would be charged for each byte of data flowing to and from your devices. Needless to say, this attempt failed catastrophically.
While being web developers may not have a direct effect on whether or not these types of services being to proliferate, we must take into account that our profession requires that we retain access to the internet almost indefinitely. Effectively, as a web dev on a metered connection, you'd be pouring your wallets down your Ethernet cords.
Therein leading to the only way to counterbalance that charge, charging more for our services. This leads to a nasty cycle where both developer and client both now must take into account just how much they would need to pay the internet companies to run even the smallest websites. Small development companies would begin to suffer, and freelancing on a whole would become a dead art. This is just the view from a Web Programmers point of view. What of other organizations like schools and small town businesses?
These are hot button issues which we must inform ourselves of and let our opinion on these matters be known.
What are your thoughts?
Sources:
Canadian Metered Internet: http://openmedia.ca/meter
I personally hate having these tiered services. I really don't want it because I am a heavy user when I am using the computer internet. However, I am not a heavy user on my phone. The general populace wouldn't ever feel these effects.
ReplyDeleteBut a company that design things and moves data, like online storage backup companies need to realize their customers cannot move large amounts of data in a month. However, this may mean that compression technologies will need to be developed to compress the amount of data.
I know these companies are doing this to curb their heavy users that use up most of their networks resources and they can make money by doing the tiered system.
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ReplyDeleteTiered services are designed to create the notion of scarcity, which reinforces the consumers' belief that the service is valuable in the same way a physical item such as gold is. It's basically a load of BS that many people will begrudgingly accept considering the only alternative is to not have service. The growing disparity in prices between home service and mobile service make it highly suspect that prices actually reflect the providers' overhead.
ReplyDeleteIn a way, I believe hand-held technologies have become a sign of social status, and thus have become more valuable than the purpose with which they are used. If anyone has seen a recent I-phone commercial, listen closely to the message - "If you don't have an I-phone..." and I will paraphrase the rest, "well, you are not cool like the rest of us that do". Companies in the modern era have learned that creating social hype about a product or service is the best way to make it succeed beyond its real potential. This is perhaps why mobile service prices are so much higher than much better home services - computers and home phones were not "cool" anymore when phones adopted the same functionality.
I would thus expect that what is occurring with mobile data rates is not something that will be mirrored by home service rates. And personally, as a developer, I see no real reason to have the internet in my pocket at all times. I think that level of connectivity is insane, as I would prefer to look at the world around me when I am not at home or office. However, with the great debate of net neutrality popping up in the news every now and again, I am still concerned just who will seek to control the internet in the future and in what way. Of course if everything goes awry, on the bright side, all of us web programmers can apply our skills as talented software engineers instead.
AT&T already does this and it was one of the main draws for iPhone owners to switch to Verizon when they got the phone. I am glad I got the unlimited plan when I did because I personally would prefer to have no data plan at all if my only other option was paying for tiered service. It's a joke. I really agree with Ben that tiered services like this are designed to create the notion of scarcity when no such thing actually exists. It is the carrier's way of getting out of investing in improved infrastructure to support increased data usage (which anyone can see is where we are going). I don't see this being a lasting fad.
ReplyDeleteI don't currently have a smart phone, but was planning on finally converting this summer. When I do get around to it I don't think I would want anything, but the unlimited plan. Anything else seems silly to me. I am in favor of all data plan or nothing.
ReplyDeleteI agree with Benjamin and Brett. I think the prices are too high, but also they will not guarantee what you are paying for. Both Version and At&t say you can get up to for a high price.
ReplyDeleteAlso, At&t has higher rates than Verizon. At&t wants to charger $45.00 a month for 4gbs of and 20 cents to send a text message unless you buy there unlimited texting plan for $20 more dollars a month if you have a smart phone. That does not even include the talking part of the phone.
This makes data a valuable item in the peoples minds and it really is not, in the way we are using it. A phone does not have as much data volume as a computer uses so, i think the prices and the reasons for it is ridiculous.
I am not really sure that I agree with your assessment that tiered charges would completely torpedo the freelance web development industry. Web developers in tune with the industry and general business practices would collectively increase the cost of their services to account for the increase in expenses. They might encounter initial resistance from clients because some developers would attempt to maintain cheaper pricing structures, but these developers would eventually run themselves into bankruptcy, leveling off the market value of web services. People still need websites and the cost of a freelance developer would still probably be much less than that encountered when hiring a firm or agency, even one of smaller scale.
ReplyDeleteThat said, I think that tiered pricing for Internet use is ridiculous, unnecessary, and just another reflection of the dangers involved with letting a small handful of companies assume control over the costs involved with obtaining access to the Internet. If you want high-speed Internet in Burlington, your options are pretty much Comcast, FairPoint, or Burlington TeleCom (hah!). With only three options, many consumers will pay what they have to in order to secure reliable Internet access and companies take advantage of that when pricing their services.
The existence of such oligopolies should make us nervous as informed consumers and should also increase concern when business deals that decrease industry competition and consumer options--such as AT&T's proposed acquisition of T-Mobile--are not more strongly opposed by the public and governing agencies.