Saturday, January 29, 2011

Shift in Thinking About Broadband Devices and Usage?

Some observers have less faith in consumer common sense than others do. Some might argue that consumers will not accept reasonable policies and plans related to broadband access for their devices. Up to this point, some might simply point to growing usage, and argue that dire consequences will result if there are any changes in pricing that reflect usage to some significant degree. Others might argue that consumers and providers are rational, and that both are capable of changing usage patterns in ways that provide the value users want, and yet also allow providers the ability to recoup their investments.

Customers are rational, are capable of understanding the consequences of behavior, and so will change their behavior. "Contrary to the popular view, tiered pricing, whereby subscribers pay for the bandwidth they consume, will not signal the death of the mobile Internet," argues Yankee Group analyst Declan Longergan.

Service providers and consumers will learn to live with bandwidth and devices in ways that satisfy their needs, without bankrupting carriers or slowing innovation. "In the same way that the notion of eco-friendly consumption behavior has gradually entered the public consciousness, so too will the idea of network-friendly (and unfriendly) mobile devices," says Lonergan. Service providers and the most sophisticated end-users will pay more attention to which devices make most efficient use of limited network resources and monthly data allowances, and will change. Over time, so will most other people.

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