Friday, May 29, 2015

Why Truly UNLIMITED mobile data plans will NOT die

I am going to give you a very simplistic explanation of why I believe that truly unlimited data will not go away.  In fact, I am going to go against the grain and propose that the articles suggesting the end of truly unlimited data are just apocalyptic attention grabbers; the same as CEO Marcelo Claure's remarks about the how unsustainable such an offering would be, on the long run.  What short-sighted comment that was!

A true visionary, like T-Mobile CEO John Legere, would likely agree that with the adoption of newer technologies, you simply will not have a need to cancel truly unlimited data.  Instead, the fact of the matter is that 5G, next-generation mobile networks are expected to achieve a 1,000-fold capacity.  The network providers that invest NOW in their infrastructure will be poised to be able to meet demand, easily. 

Add to that what one of the leaders in the development and proliferation of new cellular technologies, Nokia, has to say about network capacity in one of their publications:

"Innovative technologies will be needed in three key areas to maximize the efficiency of the HSPA and LTE layers, use all spectrum from 700 MHz to 3600 MHz, and increase network density by adding small cells.  Not only will this provide the required capacity, it also promises to
cut the operator’s total production cost for each gigabyte of data by a factor of 100 compared with typical levels today. By taking this path, operators will be able to profitably deliver one gigabyte of
personalized data per user per day to meet subscriber expectations for even more personalized and affordable mobile broadband."


In simple words: If someone needs to download a 1 gigabyte file at 7mbps then it will take them about 20 minutes. But at 50mbps it take well under 5 minutes to download the file and use less bandwidth.  IF that customer is being throttled at 256kbps its going to take almost 10 hours to download the same file.  In effect speed is an important factor in solving network congestion issues, not limiting the amount of data a person has access to.  Inconsistencies in speed will be greatly reduced as technologies are upgraded. 

Unlimited texts and calling were hardly heard of 10 years ago, and look where we are now, in that regards.  I think truly unlimited plans will be the ONLY plan networks will sell, in the future.  Which network will be the first to offer this?  Only time will tell.  I am willing to tell you who is UNwilling to just sit there and let capacity issues get in the way of UNprecedented growth.

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