Blog Post

It’s Time for Shared Data Plans in Households

Earlier this week at the D9 conference, AT&T (s t) CEO¬†Ralph de la Vega hinted at offering shared data plans in the future. That could mean one of two things: either a customer would buy an amount of data that could be used across multiple network devices, or such data could be spread across devices used by different family members. I suspect AT&T is considering the former scenario, at least initially, and that would certainly help multiple device owners. One plan would cover your smartphone, tablet and MiFi use, for example. But I’m hoping that at some point soon, AT&T — or any carrier, really — creates a shared data plan for families because collectively, a family can be overpaying for mobile broadband.

I just happened to be looking at my family’s data plan usage because my son lost his iPhone (s aapl). He knows he should have enabled the “Find My iPhone” function, so we won’t go there right now. He’s thinking of switching over to T-Mobile for a Sidekick 4G, since he really liked the review unit he helped me review in April. So I went to check his data usage to pick an appropriate data plan with T-Mobile, in case we do make the switch. That’s when the potential benefits of a family data plan hit me, since we have three iPhone users in the house. Here’s a six-month look at the data usage on the three accounts:

Clearly, we have one data user that’s above the average if you consider that, per AT&T, 65 percent of smartphone owners use around 250 MB of monthly data while 98 percent use less than 2 GB. We also have one very low data user: my wife, and it’s mainly because she works at home and primarily uses a Wi-Fi connection on her phone. Essentially, we’re all over the map when you consider that the lowest data plan is 200 MB and the next step up jumps to 2 GB. The individual data use variance can swing widely from one month to the next and from one family member to another. But what happens when this data usage is combined?

Now the heavy data user is offset by the family members who aren’t using as much network bandwidth. With the individual plans, we have my wife signed up for 200 MB of data, which works well since she uses the least. Both kids are on the 2 GB plan because 200 MB is never enough for one and occasionally not enough for the other. A shared data plan for families could fit well in this¬†situation, depending on the plan limits and pricing, of course. In my case, even accounting for growth, the family could easily share a 2 GB plan; instead, we’re paying for two 2 GB plans and one with 200 MB.

Based on AT&T currently offering 200 MB and 2 GB plans, the scenario is clearly one of over-subscription. Once you move past the base plan, you have access to a plan that has ten times more data to use, which is a big jump, albeit for a modest $10 more per month. A shared data plan for families could still allow AT&T to hedge against high amounts of growing data use, but give households a way to better manage data use variance among multiple family members.

I suspect AT&T will first offer a shared plan for individuals so multiple devices on a single account can share a bucket of data. But my hope is that family data plans come soon, to all carriers, just like we have for family voice and messaging plans.

12 Responses to “It’s Time for Shared Data Plans in Households”

  1. My wife Melissa and I combined would fit on a 2GB/mo plan given our current usage. On one hand you’d think the carriers would make less money if they offered a family data plan. On the other hand, I have a Verizon iPhone and she has AT&T. Family data might give us a reason to consolidate on the same carrier, which would be a net win for one of the carriers.

  2. I’ve got 5 lines on my ATT Family Plan- 4 kids and me (that means we’re maxed out so my husband is stuck with a TracFone). I do pay $30/mo for family unlimited texting and one of my sons added a $10/mo non-smartphone data plan (which he’s supposed to pay me for each month. Uh, yeah, he did… once). I’ve been waiting and hoping for a family data plan. ALL of us would like to have smartphones, but with the individual data plans, that SO ain’t happening- I’m currently paying about $170/mo (with taxes and fees). Paying for 5 individual data plans would be lunacy.

    I’ve considered switching to T-Mobile or Sprint because of their data plans, but paying $35 per line (plus taxes) for activation plus the price of the new phones also seems like throwing good money after bad.

    GAK! I REALLY feel like the cell phone companies artificially inflate the price of services. I mean, I’m all for someone making a profit, but it just seems like there’s no reason for all of it to be SO high priced.

  3. Stuart

    I can’t see how shared data plans will be enacted in a way that really saves money. AT&T won’t let you share data you already pay for without an expensive monthly tethering plan. And you pay for that just for the privilege of having that ability. I can’t see the “sharing fee” being any less than the tethering fee. If fact, I can see it being more because you can use the 2 (or more) devices in separate locations while you use a sharing plan, but you can’t use a tethering plan that way.

    Why not just have “rollover data” like they had rollover minutes? (They do in fact have “rollover data” but that is only for prepaid customers.) A better solution might be a fair price for metered data but that is not in their interests.

  4. I have a feeling Mr. de la Vega was just pandering. If anything their love of tiered data plans means a “Family style” data plan would be priced outrageously if it happens at all.

  5. I would love to see this happen. This is one of the main reasons that I am considering a tablet, but only a WiFi version. I just don’t have the need for 3G/4G access on a regular basis. Likewise, I don’t have a hotspot, because I don’t need it often enough. (Actually thought about getting a Rover branded laptop dongle. Glad I didn’t go though with it!)

    If I could only pay for one data plan, and then monitor the combined usage, I would be much more likely to get multiple devices.

    However, would it really make any more money for the cell providers? If they are to protect their profits, I probably won’t want to do it.

    • varun


      And because it means less profit for AT&T, you can be damn sure this is not just going to take a while, it’s never going to happen. But it sure looks nice when you’re the CEO of a company that’s trying to destroy the last semblance of competition in the market.

      AT&T: more money for less service.