As carriers become interested in connecting new devices to their networks, such as digital cameras, netbooks and e-book readers, it will require more bandwidth and different business models. To cope with growing demand, AT&T (NYSE: T) is currently doubling the capacity on its network, by cranking up the speeds from 3.6 Mbps to 7.2 Mbps, and will again later this year, install new software that could triple peak speeds to 21 Mbps, according to Telephony Online.
As for business models, AT&T is also reconsidering how it bills for data. For instance, “a customer won’t pay for a $10- to $20-a-month data plan simply to upload a digital photo wirelessly from a camera to a picture frame, said AT&T’s Glenn Lurie. But a customer may be willing to pay a set nominal fee per photo. These new data models will have to “break some rules,” by discarding the notion of a steady monthly subscription. “Lurie: “This may be the single biggest opportunity in the wireless industry today going forward: growing incremental revenues.” Today, Sprint (NYSE: S) Nextel does this with Amazon’s Kindle.
Separately, Verizon Wireless (NYSE: VZ) also made an announcement about its 4G high-speed LTE network that is currently under development. The company recently released the specifications for devices that use its LTE network, which generally has “open” requirements, reports Unstrung. This also mocks the Amazon (NSDQ: AMZN) Kindle model. For more information, people can register to view the 31-page document at https://www22.verizon.com/opendev.
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