Home Technology News Today AT&T Raising Data Rates and Allowances

AT&T Raising Data Rates and Allowances

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For heavy data users, AT&T’s new plans for smartphones and tablets offer a good value that could help avoid expensive overages.

But those who prefer the older plans still have a short window: The price increase goes into effect on Sunday.


More Coin, More Bytes

The nation’s second biggest wireless carrier announced Thursday that under the new rates, 300 megabytes of data will now cost $ 20 a month, 3 gigabytes will cost $ 30, and 5 GB will set you back $ 50, with mobile hotspot tethering capability thrown in. Each gigabyte over the limit will cost $ 10 for the latter two plans.

For tablets, those on the 300 MB plan can switch to 600 MB for $ 20, or choose the 3 GB and or 5 GB plans.

Existing customers can continue paying $ 15 for 200 MB, $ 25 for 2 GB and $ 45 for 5 GB of data, though a hotspot connection would add another $ 5, making it the same as the new plan.

“Given that these changes happen on Sunday, consumers who want the lower priced entry point should look at adopting before the price increases,” said wireless analyst William Ho of Current Analysis. “As before, unlimited data plan users or users with the older price points are grandfathered.”

The change comes as AT&T struggles to adapt after losing an early advantage in the smartphone market. It was the first, and for three years the only, carrier to sell Apple’s iPhone. Like other carriers, AT&T is also coping with soaring demand as data vastly overtakes voice communication in the level of traffic on wireless networks.

But data usage is inconsistent. Earlier this month market research firm Arieso released a study suggesting that just 1 percent of mobile Internet users are hogging a whopping 50 percent of all the data surging through wireless connections.

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