ATT Announces Plan to Slow Data Speeds for "Top 5%" of Data Users On its "Unlimited" Access Plan

Earlier this week, ATT released a statement which declared that its "top 5%" of data users in its unlimited mobile data access plan would slow those customers' broadband speeds. The duopolist characterized this corporate policy as a way to manage what ATT claimed was "exploding demand for mobile data." The story has appeared in many major news outlets; the LA Times link is reasonably succinct version of the announcement and its implications.

For some time, it has been evident that rationing of broadband access, via tiered access plans, was in the works. ATT is hardly the only interested party in this scenario. The other member of America's unloved mobile telephone duopoly, Verizon, has skin in this game. So does Sprint, which ATT wants to gobble up. The cast of usual suspects expands if one counts the cable TV distributors.

The financial stakes for consumers, distributors, and content providers are profound. Consumers are being set up to swallow the notion of eye-popping mobile phone service bills. For example, some users who send infinite numbers of stupid "Here We Are" mobile phone photos to their friends will soon pay extra for the privilege. Small businesses advertising via YouTube videos will be pegged in the 5% crowd, and be compelled to move into expensive, often annoying enterprise plans. Institutions such as K-12 schools, which have regarded the Internet and mobile phones as their panacea for the so-called "education crisis," will be made-to-order for captive, high rate schedules. Meanwhile, the duopolists, through its management of an allegedly finite spectrum, can charge "market rates". And why would a duopolist stop at a mere 5% of "heavy" data users? Why not 10%? Or 20%? Also, by not establishing a line in the data sand (say, 100 GB), the telephone companies establish a moving, monthly target left undefined for consumers, until the unlucky user crosses an invisible line of violation.

ATT' s announcement notes how the firm would send usage warnings to those nearing the undefined area of "too much." Would you feel any comfort from that arrangement?

Finally, ATT's statement does note one goal of this initiative. It plainly asserts the company currently lacks sufficient spectrum to manage its customers' anticipated demand. For that reason, ATT reiterated its desire for the federal government to approve its merger with Sprint and its valuable spectrum range.

Whether or not ATT gets its way with the Sprint deal, this week's announcement casts a bit of a dark cloud over the euphoria regarding mobile phones, endless applications for them (and tablets), and seemingly unlimited access. We may soon see a class system developing in the mobile data world, and it may very well resemble the financial one that has ironically diminished our citizens' social mobility.