Value-Based Mobile Services Create New Pricing Models
The enormous popularity of smartphones and other advanced mobile devices opened the spigot for thousands of application downloads. The resulting flood consumes enormous amounts of bandwidth in mobile networks. As a result, many operators are abandoning unlimited-usage pricing plans in favor of tiered billing, an approach in which consumers pay a flat rate for data usage that is limited to a pre-defined amount, for example, 200 Mbps or 2 Gbps per month. Operators hope this new billing approach discourages "Excessive" use of bandwidth.