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.