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AT&T: We Should Have Never Given You People Unlimited Data

Illustration for article titled ATT: We Should Have Never Given You People Unlimited Data

Ugh. Customers. The little brats. You give them the chance to pay extra for unlimited data so they can use their smartphones as designed, and then when you take it away, they complain! AT&T's #1 regrets the whole damn thing.

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In retrospect, you see, it would've been better to use tiered, capped data, like AT&T does now, because it allows AT&T to make more money, the company's CEO told the NYT:

"My only regret was how we introduced pricing in the beginning, because how did we introduce pricing? Thirty dollars and you get all you can eat," he said in the on-stage interview at the Milken Institute's Global Conference on Wednesday. "And it's a variable cost model. Every additional megabyte you use in this network, I have to invest capital."

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On the one hand, this is a rare moment of corporate honesty—the executive baldly admits the obvious, that the only point of any business is to make money for that business and its shareholders, even at the expense of the customer. On the other hand, the executive baldly admitted the obvious, that the point of his business is to make money for his business and its shareholders, even at the expense of the customer. That's us. [NYT]

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DISCUSSION

That quote was about fixed-rate pricing to customers for a product that is a variable cost to them. I don't know enough about the logistics to verify that, but if that's the case, then of course it should be variable cost to the customer as well.

We don't bitch about variable cost water. Or variable cost pizza. You don't pay Dominos $30 month for unlimited pizza.

If anybody here has some expertise in the matter, that would be a conversation worth having. The cost structure certainly has a mix of both fixed and variable, but it would be nice to have that info rather than complain in ignorance.