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Monday, 9 November 2015

Data Overage Charges Suppressing U.S Customers




U.S. cellphone customers are paying comparatively more data overage fees than before. 

More than a quarter of AT&T customers and also 20% of the Verizon customers have complained that they have started paying overage charges in the last six months. 

Well, instead of fading away, the problem is growing every year. The wireless industry is expecting data usage to double in the years to come. “I simply think our usage is outstripping our plans," said Colby Synesael, the analyst at Cowen & Co.

Verizon customers have drastically increased their data plans and the percentage of the customers who have switched from small to bigger plans has abruptly grown for the second quarter in a row. Strangely, the percentage of AT&T customers who have bumped up their plans to include a bigger bucket of data has fallen for four straight quarters. While Cowen & Co. believes that AT&T is not offering appropriate data tiers. It offers a 2GB plan for $30 a month, a 5GB plan for $50 a month and 15GB plan for $100 a month with nothing in between. 

Verizon recently made a smart move by adjusting its data bucket and started offering 1GB, 3GB, 6GB and 18GB tiers. If you wish to upgrade from one tier to the next level then it would cost just $20 a month extra, not the $50 jump that AT&T charges to go from 5GB to 15GB. 

Both, Verizon and AT&T kept numb on the story. On the other hand, T-Mobile and Sprint customers fared much better in the survey. T-Mobile doesn’t charge overages, but the provider slows down customers' speeds once they reach their monthly data allotment. T-Mobile allows 5GB a month to its subscribers and they can upgrade to an unlimited plan for just $10 additional. 

Virtually, all the customers are on unlimited data plans, but few of them are on tiered plans and 3% of Sprint customers have been recently reported paying overages. "We are always looking at what customers want and watching trends in data consumption closely, so stay tuned on this," said a spokesman for T-Mobile. Sprint confirmed that its customers get the best value. "They don't worry about overages with unlimited data," said a spokeswoman for Sprint. "Plus, AT&T and Verizon don't even offer unlimited plans to new customers."

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