iPhone users represent 3% of AT&T Wireless' subscription base but they use 40% of the bandwidth. This is causing problems for their networks in New York and San Francisco. So what to do?

Many customers don�t know how much bandwidth they�re consuming, Mr. [President Ralph] de la Vega added. When AT&T conducted a broadband test, customers often reduced their data use. Longer-term, he said, a pricing scheme based on usage is likely, though it will be determined by industry competition and regulatory guidelines.

I first read this and thought "well why wouldn't you just use price to solve that issue?" But it turns out to be more complicated than that. Treating 3G wireless and broadband as the same thing in regulation is the issue. As a frequent VoIP user, I would be very interested in an iPhone if I could place international calls on VoIP lines like Skype or Google Voice.

In the meantime, my new htc Hero, after a week of annoying power draining, is working as advertised and I absolutely love the thing. And it makes Google Voice and Skype calls just fine.

Labels: economics