When first announced, the shift away from unlimited data plans by US wireless carriers was seen by many in a fairly negative light. Given that the telcos have a long history of charging odious fees when a customer used more of a service than was purchased, it was fairly understandable. Nobody wants to be in the position of having an unexpected ultra-large bill at the end of the month. In practice it hasn’t turned out bad at all. In fact, this latest shift in pricing models turns out to be pretty rational.
Instead of a large fine—the kind you expect to be levied by the state when you break a law—the net result of using up a purchased block of data is that you simply get charged for another. Don’t get me wrong. There are still things to quibble about. For example, AT&T effectively requiring the purchase of another 2GB of data to enable tethering seems pretty silly to me. I currently pay $40 per month for 4GB of data, of which I normally don’t even use half. But, that doesn’t take away from the point that the way overages are handled is rational and and comprehensible. The customer is treated as a consumer who wants to more of a product, not as a criminal who broke a traffic law and needs to be punished.
Go overseas, however, and this newfound rationality goes right out the window. Sign up for AT&T’s 100MB international data roaming plan and what costs a penny per MB in the states suddenly is valued at over just a buck per MB. That’s one hundred times the going rate of domestic data. Furthermore, go over the limit and you get charged $5.12/MB. That’s over five hundred times the domestic rate. $5000/GB. It’s unbelievable.
Wireless data isn’t any more precious in Europe than it is in the states. It’s about the same price, really, if not a bit cheaper. On my latest trip, I picked up a T-Mobile SIM in Edinburgh and paid £5 for a month of data capped at 1GB of usage. The fact I can do that without a contract is astonishing to me. Certainly, if I can buy data at that rate from T-Mobile directly in the UK on the street without a contract, AT&T can do even better in bulk.
Now, I don’t mind at all the idea of paying more for my data usage when I travel internationally. It’d be worth something—actually quite a bit—to me to be able to just use my iPhone with my AT&T +1 number anywhere in the world and not bother with finding a local SIM and juggling two phones like I currently do. How much would I pay? That’s a good question. Whatever the price, however, it’s time for the simple and rational system for buying blocks of data that we have domestically to make its way to the international plans.
Of course, I don’t expect this to happen anytime soon. Now that they are available in the US, I’m planning on buying an unlocked iPhone when I next upgrade. On the other hand, who’d have expected the latest plans to be as rational as they are today?