Mobile phone networks are calling time on unlimited data usage by their subscribers. The reason is that they can't cope with the demand. Having converted us all to the benefits of mobile data, they now have to choke us. It's all that video we're consuming. According to Cisco, while a year ago 1% of customers were generating 30% of mobile data traffic, today their share has dropped to 20%. With volumes growing fast, this means that more of us are using more data.
Pricing data usage is one way of dealing with demand. The other weapon is to increase capacity. I believe we'll see a cyclical effect in networks' attitudes to data as waves of technological development roll in. Over the long term, we'll see eras of unlimited use alternating with charging structures. But since the different networks won't be synchronized in their developments, we will also see variability in market leadership. This is likely to further erode customer loyalty as people switch to the current best provider.
The constant amid all this turmoil will be the growing demand for data anytime, anyplace. That genie is out of the bottle. Unlimited Data
Comments