Why Did AT&T Eliminate Data Overage Fees?



AT&T’s new wireless plans

According to a Wall Street Journal report, AT&T (T) introduced new wireless data plans. These new wireless data plans will reduce costs for heavy data users and have higher prices for low data usage customers. The company also eliminated data overage charges and will instead slow down Internet speeds for users who have reached their data limit. Other wireless carriers that have done away with data overage charges include T-Mobile (TMUS) and Sprint (S).

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According to the report, AT&T’s cheapest plan will cost $30 per month and will offer one GB (Gigabyte) of data. One reason that wireless carriers could be doing away with data overage fees could be because they have been quite unpopular with customers. The FCC’s net neutrality rules don’t explicitly rule out data caps, but they do specify that broadband providers must disclose data caps to users.

Earlier this year, Comcast (CMCSA) also announced that all 300 GB (gigabyte) data plans in Comcast’s trial markets will be shifted to a terabyte plan, “regardless of the speed” by June 1. For customers who want a data plan that exceeds a terabyte, the company will offer an unlimited data plan option at an additional cost of $50 per month, or customers can purchase an additional 50 GB for $10.

About AT&T GigaPower service

AT&T GigaPower is similar to Verizon (VZ) Fios. GigaPower is capable of providing Internet speeds of up to one Gbps (gigabits per second), which is subject to conditions. For Fios, the maximum symmetrical Internet speeds are 500 Mbps (megabits per second), according to the company. These 100% fiber-based services provide the telecom players with the ability to compete effectively with cable players like Charter Communications (CHTR) and Comcast.


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