Posted by Levi Sumagaysay on July 13th, 2011 at 10:37 am | Categorized as Uncategorized | Tagged as android , Apple , AT&T , data caps , EA , Electronic Arts , Facebook , FaceTime , gaming , Google , mobile , movies , Netflix , smartphones , streaming video , Verizon , video , video chat , wireless
As the trend away from all-you-can-eat Internet data continues, companies are rolling out or updating services that demand more and more bandwidth. GMSV first explored this issue last year (see Tech advances zig while access zags ), but now it is compounded by the fact that Verizon last week joined AT&T in moving further away from unlimited access. With the nation’s two largest wireless carriers now offering only tiered data plans to new subscribers, some, such as the Mercury News’ Troy Wolverton , worry about how this trend will affect innovation.
Some might argue that the trend is too new to have affected innovation so far. For example, included in the Android Market update announced Tuesday is the ability to rent movies to watch on mobile phones for as low as $1.99 a pop. Also, some see’s much-maligned move, also announced Tuesday, to raise its prices on subscription plans that include DVD rentals along with online streaming as a tough-love push to wean subscribers off DVDs. Netflix CEO Reed Hastings has said he would like to transition the Los Gatos company largely to streaming only. (The move is probably also a way to offset Netflix’s rising costs in securing rights to movies and TV shows. By the way, while customers are just outraged , investors are loving the move, with shares in the Los Gatos company up more than 3 percent to $300.91 as of this post.) Also Tuesday,announced that it was buying PopCap , maker of mobile games.
So, movies and video games on mobile phones. With Google andhaving recently rolled out video chat on their social networks, you have to think they’re working on bringing those features to smartphones as well.’s newest iPhones, of course, already have FaceTime. The companies don’t appear to be dialing back on new, whiz-bang features so far, although of course that remains a possibility.
But for now, what will consumers do? Will they heartily cheer and use all the new, bandwidth-consuming features without reservation, knowing they could run up against the data caps and possibly run up their wireless bills? Download an app that helps them keep track of the running meter on their smartphones, perhaps? Or will they cut back on smartphone use?
A recently released Pew study suggests that it won’t be the latter, with consumers adopting smartphones “faster than just about any high-tech product in history,” according to the Washington Post . In fact, according to the Post, some users are increasingly relying on their smartphones as their only means of Internet access. For many of us, having a taste of Internet access wherever we go means we probably won’t be able to go back to the no-smartphone days. This means we, the consumers, are the biggest losers in the growing trend away from unlimited data — as the mighty wireless carriers enjoy strong profits (AT&T reported a first-quarter profit of $3.4 billion in April) and surging stock prices (Verizon shares have risen 40 percent in the past year, according to Fortune ). Where’s the outrage over that?
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