O2 CEO puts his point of view for dropping unlimited data

Published by Ewan Spence at 8:57 UTC, June 21st 2010

Following on from previous discussions of the dropping of “unlimited” data in smartphone contracts, CEO of UK network O2 Ronan Dunne blogs about the changes and why he believes they are fair and transparent. In any unmetered system, there will be heavy users consuming the most resource – it’s the nature of the arithmetic – but is this a long term plan, a quick fix, or a grab for more income?

In part, Dunne writes:

We don’t think it’s fair that the many should subsidise the behaviour of the few, and we think that we have a responsibility to our customers to address this kind of imbalance. So from June, O2 will pioneer a simple but important change to our billing structure, in which we will begin to ask our heaviest data users to pay more for using large amounts of data. The vast majority of our users will be completely unaffected by the changes – 97% of our smartphone customers currently use less than 500MB of data every month.

Lots of questions are still being asked, especially in the comments to that article (by the way kudos for O2 to have the comments open and be responding to them); including some crackers Slash Gear’s Chris Davies; "...this situation isn't going to get better in terms of people realising they should be frugal and use less data."

And it’s interesting that the O2 incubation project that is Giffgaff (which uses the O2 network infrastructure) is still offering unlimited texts, calls and internet access for £35 a month with no immediate plans to follow their sugar daddy for pricing.


 

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News Discussion

Ian McDonald
Can we have the link to the blog please in the article?

Thanks

Ian
Unregistered
Unregistered
Hi,

I somewhat agree to metered system because the flaw with the unlimited data is some user might be abusing the system. But I also agree to the unlimited system for the peace of mind of the user.

therefore, I would like to tell the rest of the world what is being use in Indonesia for ADSL & cell phone provider.
There were 3 data plan... metered, unlimited, and Multispeed.
the metered plan is obvious.... a metered system.
the unlimited plan is also obvious...

multispeed is the new breed of unlimited. It have a soft limit cap before the speed is downgraded.
for example. let say the internet billing start each month from date 1. and there were 1 soft limit, the 5GB. If on date 5, the user hit 5GB, then the speed is lowered.

example....
unlimited 386kbps, the price is US$ 90
unlimted 756kbps, the price is US$ 150
multispeed 1.5MBps/64kbps (2GB), the price is US$ 10 (after hitting 2GB softcap, the speed is lowered to 64kbps)
multispeed 1.5MBps/64kbps (5GB), the price is US$ 20 (after hitting 5GB softcap, the speed is lowered to 64kbps)
multispeed 1.5MBps/64kbps (10GB), the price is US$30 (after hitting 10GB softcap, the speed is lowered to 64kbps)
multispeed 1.5MBps/128kbps (5GB), the price is US$ 25 (after hitting 5GB softcap, the speed is lowered to 128kbps)
multispeed 1.5MBps/128kbps (10GB), the price is US$35 (after hitting 10GB softcap, the speed is lowered to 128kbps)
multispeed 1.5MBps/386kbps (10GB), the price is US$50 (after hitting 10GB softcap, the speed is lowered to 386kbps)

with this multispeed, user who use little data, can still have fast internet with peace of mind. :)
and user that use lots of data didn't put a burden on other user.
Unregistered
Quote:
Originally Posted by Unregistered View Post
Hi,

I somewhat agree to metered system because the flaw with the unlimited data is some user might be abusing the system. But I also agree to the unlimited system for the peace of mind of the user.

therefore, I would like to tell the rest of the world what is being use in Indonesia for ADSL & cell phone provider.
There were 3 data plan... metered, unlimited, and Multispeed.
the metered plan is obvious.... a metered system.
the unlimited plan is also obvious...

multispeed is the new breed of unlimited. It have a soft limit cap before the speed is downgraded.
for example. let say the internet billing start each month from date 1. and there were 1 soft limit, the 5GB. If on date 5, the user hit 5GB, then the speed is lowered.

example....
unlimited 386kbps, the price is US$ 90
unlimted 756kbps, the price is US$ 150
multispeed 1.5MBps/64kbps (2GB), the price is US$ 10 (after hitting 2GB softcap, the speed is lowered to 64kbps)
multispeed 1.5MBps/64kbps (5GB), the price is US$ 20 (after hitting 5GB softcap, the speed is lowered to 64kbps)
multispeed 1.5MBps/64kbps (10GB), the price is US$30 (after hitting 10GB softcap, the speed is lowered to 64kbps)
multispeed 1.5MBps/128kbps (5GB), the price is US$ 25 (after hitting 5GB softcap, the speed is lowered to 128kbps)
multispeed 1.5MBps/128kbps (10GB), the price is US$35 (after hitting 10GB softcap, the speed is lowered to 128kbps)
multispeed 1.5MBps/386kbps (10GB), the price is US$50 (after hitting 10GB softcap, the speed is lowered to 386kbps)

with this multispeed, user who use little data, can still have fast internet with peace of mind. :)
and user that use lots of data didn't put a burden on other user.
That can only work with ADSL (landlines) since speed can be capped for every subscriber. I don't think 3G towers enable such functionality.
Unregistered
You're right. At least o2 are open. [edited until some links to substantive stores added]
Unregistered
Here is a couple of proof that cellular data can also be soft-caped.

1. Three
http://www.three.co.id/broadband/
http://www.three.co.id/ShowDoc/BEA+R...mbroadband.jpg

The word is indonesian meaning:
To subscribe sent to 234 (free, the sms to that number is free)
max speed is 1.8MBps
For soft cap 500 MB rates is Rp. 25,000/month (US$2.8) after reaching softcap speed is down to 64kbps. to subscribe sent MAU<space>500MB to 234, to stop sent STOP<space>500MB
For soft cap 1GB rates is Rp. 35,000/month (US$3.9), after reaching softcap speed is down to 64kbps..

2. XL Axiata
http://www.xl.co.id/XLInternet/Prabayar#PIU150rb
Rp. 150,000 (US$17) /month
after reaching 1GB the speed is down to 64kbps

The other GSM/3G/3.5G in Indonesia, such as Telkomsel, Indosat, Axis also have similiar product. but I think this 2 provider already gives the idea. especially since 3 is a international provider that also operate in Europe and Asia (hongkong, thailand)
Unregistered
sorry to add more link

it seems XL have also the link in english
http://www.xl.co.id/language/en-US/X...bayar#PIU150rb
Unregistered
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