Sunday, March 4, 2012

What Role for End User Choice in Mobile Data Plans?

[NEUTRAL]Many consumers probably would jump at the chance to buy virtually any TV show, series or channel, including current episodes, a la carte, much as they buy single songs, rather than the bundled collections we call "albums" or "compact discs."

One reason is the somewhat logical expectation that such buyers will get precisely what they want, while saving money.

The issue is whether many consumers will have something of the same reaction to mobile Internet plans that, for example, offer lower data plans in exchange for a curated experience big on Facebook, YouTube or Twitter.

Orange apparently wants to find out. For less than $14 a month, customers get unlimited use of Facebook and Twitter. Web browsing on other sites costs about 70 cents for every 20 minutes of use, the Wall Street Journal reports. All Mobile Traffic Isn't Equal

The issue isn't whether this is the best way to match end user preferences on mobile devices with retail packaging. The issue is that it is an interesting way to customize and personalize use of the web apps people really value, while offering savings at the same time.

To the extent that users already have indicated preference for buying songs, not albums, or might prefer buying shows rather than channels, they might also prefer a focused approach to web apps on their mobiles.

Some won't like the idea, but they can buy the standard plans, and pay more money. Some policy advocates will worry about the implications for app competition or any number of other issues.

But if choice provides end user value in music, video, or stories, it isn't so clear why such choice does not provide equivalent value when mobile users buy and use their favorite mobile apps.

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