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	<title>The iPhone Blog &#187; tiered pricing</title>
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	<link>http://www.theiphoneblog.com</link>
	<description>For people who dare to Phone Different.</description>
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		<title>AT&amp;T Wants to Throttle iPhone Data&#8230; or Just Charge More for Heavy Usage?</title>
		<link>http://www.theiphoneblog.com/2009/10/08/att-throttle-iphone-data-charge-heavy-usage/</link>
		<comments>http://www.theiphoneblog.com/2009/10/08/att-throttle-iphone-data-charge-heavy-usage/#comments</comments>
		<pubDate>Thu, 08 Oct 2009 19:22:28 +0000</pubDate>
		<dc:creator>Rene Ritchie</dc:creator>
				<category><![CDATA[News]]></category>
		<category><![CDATA[AT&T]]></category>
		<category><![CDATA[data management]]></category>
		<category><![CDATA[packet shaping]]></category>
		<category><![CDATA[tiered pricing]]></category>

		<guid isPermaLink="false">http://www.theiphoneblog.com/?p=12913</guid>
		<description><![CDATA[

PCWorld has an article up saying that, based on AT&#38;T CEO Ralph de la Vega&#8217;s comments during yesterday&#8217;s CTIA Keynote, AT&#38;T was laying the groundwork to &#8220;manage&#8221; or &#8220;throttle&#8221; iPhone users&#8217; data.

de la Vega did use most of his time, after announcing VoIP over 3G for iPhone, to rail against the FCC&#8217;s net neutrality push. [...]<p>This is a story by <a href="http://theiphoneblog.com">the iPhone Blog</a>.  This feed is sponsored by <a href="http://store.theiphoneblog.com">The iPhone Blog Store</a>.<br/><br/><a href="http://www.theiphoneblog.com/2009/10/08/att-throttle-iphone-data-charge-heavy-usage/">AT&#038;T Wants to Throttle iPhone Data&#8230; or Just Charge More for Heavy Usage?</a></p>
]]></description>
			<content:encoded><![CDATA[<p><a href="http://www.theiphoneblog.com/images/stories/2009/06/att_iphone_3g_s_hate_you_cant_leave.jpg"><img src="http://www.theiphoneblog.com/images/stories/2009/06/att_iphone_3g_s_hate_you_cant_leave-400x202.jpg" alt="att_iphone_3g_s_hate_you_cant_leave" title="att_iphone_3g_s_hate_you_cant_leave" width="400" height="202" class="aligncenter size-medium wp-image-9441" /></a></p>

<p><a href="http://www.pcworld.com/article/173320/atandt_wireless_ceo_hints_at_managing_iphone_data_usage.html">PCWorld</a> has an article up saying that, based on AT&amp;T CEO Ralph de la Vega&#8217;s comments during yesterday&#8217;s CTIA Keynote, <a href="http://www.theiphoneblog.com/tag/att/">AT&amp;T</a> was laying the groundwork to &#8220;manage&#8221; or &#8220;throttle&#8221; iPhone users&#8217; data.</p>

<p>de la Vega did use most of his time, after announcing VoIP over 3G for iPhone, to rail against the <a href="http://www.theiphoneblog.com/tag/fcc">FCC</a>&#8217;s net neutrality push. He claimed a small percentage of heavy data users (i.e. iPhone users) were hogging most of the limited data resources, and &#8220;crowding&#8221; out regular (i.e. non-iPhone users). He also stated that AT&amp;T would need to &#8220;manage&#8221; the network so that the few couldn&#8217;t crowd out the many.</p>

<p>This is what makes PC World think:</p>

<blockquote>
  <p>In the face of exploding data service demand and scarce wireless spectrum, does AT&amp;T intend to quietly begin rationing the data usage of bandwidth hogs like the iPhone? Will AT&amp;T begin to quietly “manage” the duration and speed of my 3G connection based on how much data I’ve used in a given day, or on the type of content or services I’m using the bandwidth to access?</p>
</blockquote>

<p>Aside from &#8220;AT&amp;T should spend some of their billions making a better network and getting 4G here faster&#8221;, it&#8217;s hard to argue that the iPhone hits the network like a freight train, and when you multiply that by tens of millions of users, it&#8217;s a huge load (something RIM emphasizes to carriers when pitching their  highly compressed, proxied BlackBerrys as &#8220;better network citizens&#8221;).</p>

<p>That&#8217;s an immediate problem for the iPhone on AT&amp;T, but arguably if another device with a great internet experience ever succeeds enough to reach those numbers on a single network &#8212; Android or webOS for example &#8212; it will become an everyone problem everywhere.</p>

<p>Dieter Bohn, editor-in-chief of our Smartphone Expert network was <a href="http://www.theiphoneblog.com/2009/10/07/tipb-ctia2009-att-keynote-liveblog/">live at AT&amp;T&#8217;s keynote</a> yesterday, but his takeaway was a little different:</p>

<blockquote>
  <p>It&#8217;s pretty clear from [de la Vega's] complaints about the top percentage that he would want tiered data prices instead of unlimited for everybody. That seems more likely what was meant by &#8216;managing.&#8217; I think that rather than rationing, ATT would just like to charge that top percentage more.</p>
</blockquote>

<p>What do you think? Do you want AT&amp;T &#8220;managing&#8221; your iPhone usage? Does it sound fair to charge heavy users more for that heavy use? </p>
<p>This is a story by <a href="http://theiphoneblog.com">the iPhone Blog</a>.  This feed is sponsored by <a href="http://store.theiphoneblog.com">The iPhone Blog Store</a>.<br /><br /><a href="http://www.theiphoneblog.com/2009/10/08/att-throttle-iphone-data-charge-heavy-usage/">AT&#038;T Wants to Throttle iPhone Data&#8230; or Just Charge More for Heavy Usage?</a></p>
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		<slash:comments>91</slash:comments>
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		<item>
		<title>Macworld: iTunes Goes DRM FREE!</title>
		<link>http://www.theiphoneblog.com/2009/01/06/macworld-itunes-drm-free/</link>
		<comments>http://www.theiphoneblog.com/2009/01/06/macworld-itunes-drm-free/#comments</comments>
		<pubDate>Tue, 06 Jan 2009 19:07:40 +0000</pubDate>
		<dc:creator>Rene Ritchie</dc:creator>
				<category><![CDATA[News]]></category>
		<category><![CDATA[drm-free]]></category>
		<category><![CDATA[itunes plus]]></category>
		<category><![CDATA[macworld]]></category>
		<category><![CDATA[macworld 2009]]></category>
		<category><![CDATA[tiered pricing]]></category>

		<guid isPermaLink="false">http://www.theiphoneblog.com/?p=6482</guid>
		<description><![CDATA[

Phil Schiller, during his Macworld Keynote (see our MASSIVE live blog!) today, announced &#8212; as rumored &#8212; that iTunes is going DRM-Free! 8 million songs will be available in higher-quality 256-bit, DRM-free iTunes Plus format immediately, the remaining 2 million or so songs following by the end of the quarter.

In order to wrestle this concession [...]<p>This is a story by <a href="http://theiphoneblog.com">the iPhone Blog</a>.  This feed is sponsored by <a href="http://store.theiphoneblog.com">The iPhone Blog Store</a>.<br/><br/><a href="http://www.theiphoneblog.com/2009/01/06/macworld-itunes-drm-free/">Macworld: iTunes Goes DRM FREE!</a></p>
]]></description>
			<content:encoded><![CDATA[<p><img src="http://www.theiphoneblog.com/images/stories/2009/01/showcase_itunesplus20090106.jpg" alt="" title="showcase_itunesplus20090106" width="500" height="253" class="aligncenter size-full wp-image-6483" /></p>

<p>Phil Schiller, during his Macworld Keynote (see our <a href="http://www.theiphoneblog.com/2009/01/06/tipb-macworld-2009-keynote-live/">MASSIVE live blog</a>!) today, announced &#8212; <a href="http://www.theiphoneblog.com/2009/01/06/itunes-rumors-drm-dead-variable-pricing-cometh-3g-downloads-iphone/">as rumored</a> &#8212; that <a href="http://www.apple.com/itunes/whatsnew/">iTunes is going DRM-Free</a>! 8 million songs will be available in higher-quality 256-bit, DRM-free iTunes Plus format immediately, the remaining 2 million or so songs following by the end of the quarter.</p>

<p>In order to wrestle this concession from Big Music, however, Apple had to give them a concession of their own: variable pricing. Apple had long resisted this policy, preferring the unified $0.99 model (a brief flirtation with $1.29 iTunes Plus pricing not withstanding). Today, however, Schiller announced a 3 tiered structure:</p>

<ul>
<li>$0.79 for older, catalog songs</li>
<li>$0.99 for mid-tier</li>
<li>$1.29 for premium (hot new singles?)</li>
</ul>

<p>Upgrading will cost $0.30 per song, $060 per music videos, and whole albums for 30% of the album price.</p>

<p>So, is it working for you yet? And are you upgrading? Or just buying new song?</p>
<p>This is a story by <a href="http://theiphoneblog.com">the iPhone Blog</a>.  This feed is sponsored by <a href="http://store.theiphoneblog.com">The iPhone Blog Store</a>.<br /><br /><a href="http://www.theiphoneblog.com/2009/01/06/macworld-itunes-drm-free/">Macworld: iTunes Goes DRM FREE!</a></p>
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		<slash:comments>16</slash:comments>
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