Another year comes and yet another increase comes with it. It seems that Mobile giant, AT&T, has increased the cost of its internet. While many customers are not surprised, many are outraged. However, there are reasons to substantiate their decision.

The prices of AT&T internet deals went up by 33% as the rates were increased for both smartphone and tablets. But the question on everyone’s mind is why they did it. It is pretty simple, as you use more mobile data, mobile carriers will charge more for their services.

AT&T is quickly run out of valuable spectrum. For those of you who do not know, spectrum is the wireless capacity of a data network. It is similar to the bandwidth you have on regular internet. The more traffic there is, the slower the network. This is the primary reason why AT&T increased its charges in 2012.

 

Smart Phone

If you look at everything else in life, the same rules apply. If you are looking for a car that was made in a limited amount, the price of it will increase. If you use more data than your service provider gives, you will have to pay more for it. As resources are strained and competition rises, the prices will increase. As the demand increases and the supply runs low, prices increase. All of the above examples are simple commerce principles.

We all know that the amount of data used by smartphone is increasing and that there is a need to fulfill those needs. However, this cannot be done for free; especially considering how much data is used. It seems that as the need for more data usage rises, the costs of data plans will only increase. When asked, AT&T did not state how many of its users were using more than 2 gigabytes every month.



The prices of AT&T internet deals may have increased but AT&T has also increased the data usage caps so it should be a win-win situation. The cost of AT&T’s lowest-tier data package (for smartphone internet) has been increased to $20 per month (was $15).

However, the data usage has also been increased by 100 megabytes (the old cap was 200 megabytes). This allows users to gain an extra hour worth of video streaming. The higher tier plan has also received a data boost. They now get 3 gigabytes a month instead of 2 (if they pay $30 per month instead of $25).

Tablet users have also seen an increase in their mobile internet plan. You can choose the $15 per month plan that grants you 250 megabytes to use. If you double the monthly pay, you can get twelve times the data usage (3 gigabytes). Last but not least, $50 gets you 5 gigabytes of glorious data every month. However, AT&T will notify users if they exceed their monthly limit preventing them from incurring extra charges.

Additionally, the prices of AT&T’s plans usually go up every February. Most people perceive this to be nothing more than another increase which they feel is fine. However, many of AT&T’s customers feel that the annual increase should not occur.

However, many users feel quite the contrary. Many of AT&T’s customers believe that an annual increase is not justified and that the increases in data usage are not scaling well with the increases in the cost of the data plan.

However, the costs of going over the cap have also been increased. $20 will be charged to low-tier plan users for every 300 megabytes of extra data used. $10 will be charged for every extra gigabyte used by high-tier plan users.

However, according to AT&T Mobility’s chief marketing officer David Christopher, it is the demand for competitive mobile internet rates that caused the increase. The usage of data by AT&T users has increased by 40% every year. He says that people want more and that AT&T will give them more. However, there will always be a cost for using more data.

It seems that the increase in demand, the annual increases and the ever-rising need for more data will always cause the prices to go up; whether a little or a lot. The strain on the current resources and wireless spectrum does not seem to make these matters any better.