AT&T imposes new limits on mobile data usage

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AT&T imposes new limits on mobile data usage

By CAROLINE GABRIEL

Published: 6 May, 2009

READ MORE: AT&T

Like all major operators, AT&T is trying to increase its revenues from wireless data, while preserving margins - a hard balance to strike amid rising price wars, and the investment it needs to make in enhancing its 3G network to support the iPhone and other key drivers of data usage.

Indicating a bigger push into non-iPhone data devices such as netbooks (perhaps in fear of losing its Apple exclusive), AT&T has changed the terms of service for its wireless data plans. Heavy data users on the AT&T network - dominated by iPhone owners - could find their usage more restricted, though the carrier hopes this will also avoid overloading of its network, and deliver a better experience to customers. This balancing act will be vital as it introduces more heavy-duty data products such as netbooks, dongles and new smartphones (it recently added the Nokia E71, though without Wi-Fi).

According to the new terms, data sessions may be conducted only for internet browsing, email and intranet access, and "certain uses that cause extreme network capacity issues and interference with the network are therefore prohibited". These banned applications include using the phone or netbook as a server to host computer apps; camera posts and broadcasts; peer-to-peer file sharing; and gadgets that maintain continuous active internet connections. AT&T gives the example that downloading legally acquired songs is legal, but downloading movies using P2P file sharing services, redirecting TV signals to view on PCs, or web broadcasting are not.

Other carriers are likely to follow suit - the move to open access, and the increasing uptake of applications like Sling Media (for redirecting TV signals) or video-based social networking, are putting huge strain on 3G networks, and many cellcos believe they need to reset consumers' expectations of mobile broadband. This could be bad news for software houses like Sling, which says it has submitted its SlingPlayer app to the iPhone App Store but has already waited more than a month without approval. Apple's store decisions have sometimes been tightly tied into AT&T's requirements.