Bloomberg’s recent story about Clearwire seeking to raise $2.5 billion to $5 billion in a wireless-spectrum auction has Wall Street all abuzz. A recurring question on Wall Street is whether regulatory approval would be given to such a sale, particularly if AT&T or Verizon were the winning bidder. To the extent Clearwire needs the funding to support its network construction, my view is that the FCC would likely approve the sale no matter who wins the “bidding.” I examine the possible scenarios below:
Posts Tagged ‘ AT&T ’
“Preserving” the “Open Internet” Is Doublespeak
When the FCC kicked-off its net neutrality proceeding in 2009, it labeled the proceeding “Preserving the Open Internet.” But to “preserve” means to “make lasting” or “maintain” rather than “change,” and that’s what many public interest advocates really want to do – change the way the Internet currently operates. For them at least, renaming “change” as “preservation” is classic doublespeak designed to disguise the real intent of net neutrality regulation. Read the rest of this entry »
When Lowering Prices Is Bad for Consumers, You Know It’s Opposite Day
Patrick Star: “Opposite Day? Hey, I’ve heard of that.”
SpongeBob: “You have?”
Patrick Star: “No, what is it?”
SpongeBob SquarePants (1999)
Last week AT&T announced “new wireless data plans that make it more affordable for more people to enjoy the benefits of the mobile Internet.” How will AT&T do that? It is abandoning unlimited data services effecting June 7, 2010, and moving to usage-based pricing plans. The lowest-price plan is 50% less expensive than AT&T’s current unlimited data plan and offers enough data to satisfy approximately 65% of AT&T’s customers on average according to AT&T’s press release. The current unlimited plan is $30 per month. The new smallest plan available is only $15 per month for 200 MB of data (but, if customers exceed 200 MB in a monthly billing cycle, they will receive an additional 200 MB of data usage for $15 for use in the cycle). AT&T will also offer a plan that allows up to 2 GB a month of data usage for $25 (with an additional $10 charge for an additional 1 GB over the limit).
With these new plans it looks like the average AT&T customer will actually save money, which should make “consumer groups” happy, right? Not when it’s opposite day. Rather than recognize the benefits of a more rational pricing scheme – one that accounts for actual usage patterns – Chris Riley at Free Press accused AT&T of “price gouging” for charging “low-end users $15 per 200 MB” rather than the $30 per month they pay now for unlimited service they don’t need. Yes, SpongeBob, it is price gouging when you lower prices – on opposite day.
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AT&T broadband Free Press wireless