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3 GB v. 250 MB?


Lucky
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The IPad data plan I have with AT&T offers me 250 MB of data for $14.99 a month or I could get 3 GB for $24.99. Now isn't that 12 times as much data for just twice the price? I didn't study this in school! I came in just 2 MB under my limit for this month so see no reason to buy more, but I do wonder why they offer so much more if you do upgrade. Opinions?

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The IPad data plan I have with AT&T offers me 250 MB of data for $14.99 a month or I could get 3 GB for $24.99. Now isn't that 12 times as much data for just twice the price? I didn't study this in school! I came in just 2 MB under my limit for this month so see no reason to buy more, but I do wonder why they offer so much more if you do upgrade. Opinions?

 

A gig is 1024MB, so yes you are correct. If you go with the 3 gig you are paying about $.008 per MB as opposed to $.06

 

I am sure it is more worthwhile to move to the higher tiered plan rather than pay for an overage. And I am sure ATT did their research when setting up these plans, they likely found the average user would consume 260. That isn't me being skeptical, it's the way the mobile carriers work here in the US. But that is really nothing compared to what they have done with text message pricing.

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The IPad data plan I have with AT&T offers me 250 MB of data for $14.99 a month or I could get 3 GB for $24.99. Now isn't that 12 times as much data for just twice the price? I didn't study this in school! I came in just 2 MB under my limit for this month so see no reason to buy more, but I do wonder why they offer so much more if you do upgrade. Opinions?
You're correct on the data but wrong on the money - $24.99 is only 66% more money, not twice as much. Alternatively, if you had gone over your 250 MB allotment, how much would you have been dinged for going over?
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And I am sure ATT did their research when setting up these plans . . .

 

Indeed.

 

According to this article, AT&T's incremental cost of providing an extra GB of bandwidth is about a penny, or three cents for the 3GB they want to charge Lucky an extra ten bucks for. The same article says that AT&T charges their U-verse customers the very same ten bucks for an extra 50GB of bandwidth.

 

A reasonable conclusion would be that AT&T's pricing is more a function of what they think they can get folks to pay for bandwidth, rather than what it actually costs them to provide it.

 

As you say, they did plenty of consumer research before setting their prices. They'll have a pretty good idea of how many will make the upgrade, how much is too much, how customer attitudes about pricing have changed in the past year or two, and where they'll be in the next year or two. They'll also look at what their competitors are doing, and how much bandwidth each has available to sell. AT&T knows plenty about pricing, and one of the things they know is that their customers have no idea how much incremental profit they're making on bandwidth.

 

What's interesting about Lucky's numbers is a reverse view: If AT&T can profitably sell you 3GB for $24.99, why do they think you'd pay $14.99 for 250MB? Do they think you'd be willing to cut your usage by more than 90% just to save 40%? They're counting on at least a few folks to conclude they're getting screwed on the cheap plan and make the upgrade. They'll still be getting screwed, but maybe it won't hurt as much. http://www.maleescortreview.com/forum/public/style_emoticons/default/rolleyes.gif

 

In the end, though, I think it's not so much what you pay for bandwidth as what you do with it.

 

 

http://26.media.tumblr.com/tumblr_m2bh4lUpkw1qhwvivo1_500.jpg

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Sorry, Lookin, I didn't see what you wrote. Damn nice picture though!

 

BTW, I screwed up on the pricing. The 3 GB is $29.99, not $24.99. Much of the response given is still quite relevant.

And thanks for the replies! And the pic- quite hot!

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My other problem with AT&T is that I canceled a line. It was five days into a new month, so they insist that I pay for the whole month before they will send me a final bill. of course, I don't owe for a full month. They would just have to refund the money minus the five or so bucks that I do owe.

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My other problem with AT&T is that I canceled a line. It was five days into a new month, so they insist that I pay for the whole month before they will send me a final bill. of course, I don't owe for a full month. They would just have to refund the money minus the five or so bucks that I do owe.

 

Same thing happened with me with T-mobile. They claimed it was in the fine print of my contract, and I have not the time to look it up, but I imagine it is there somewhere. They will extract all that they can from you.

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