The iPhone Value Chain- Carriers caught in a hard place

See the recommendation from the author on this WSJ post.  For reasons, tech services and products always trend to unlimited plans (has to do with fixed vs. variable costs).  As networks continue to compete with each other, it’s hard to see the industry abandoning unlimited pricing plans, unless they collude.

The new networks are likely to be more efficient at delivering data applications. Even so, Sanford C. Bernstein analyst Craig Moffett argues that returns on invested capital related to these new services will be lower than on older services.

In the short term, carriers should abandon unlimited data pricing plans. Both AT&T and Verizon Wireless already charge extra for heavy users with wirelessly connected laptops. They will have to contemplate similar strategies for smartphone users.

Setting the right price won’t be easy. With competition, the temptation to discount will be hard to avoid. And there’s no guarantee that customers will pay as much for entertainment as for voice-calling and email.

via Network Demands Are iPhone Hang-Up – WSJ.com.

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