Randall Stephenson at a global conference of the Milken institute talked about AT & T. According to reports of New York Times, he said that he had only one regret that he was first to introduce and support the cellular carrier with iPhones.
He said that the model introduced was a variable pricing model. Following are the lines which Stephenson said in his interview.
“My only regret was how we introduced pricing in the beginning, because how did we introduce pricing? Thirty dollars and you get all you can eat,” he said in the on-stage interview at the Milken Institute’s Global Conference on Wednesday. “And it’s a variable cost model. Every additional megabyte you use in this network, I have to invest capital”.
He specified his worries about the different applications such as imessage bite in AT&T’s tradition messaging revenue stream and talked about history of partnership between AT&T and apple which coalesced few years back. He also described how the usage of data increased 20,000 percent from the year 2008 when apple store was initiated to 2011.
In view of that fact, AT&T has stopped providing unlimited data usage to their customers as well as to throttling users who have been using these plans for a very long time. Stephenson was also concerned about the effect of Skype on existing models of AT&T. His concerns can be well judged by following words which he said in his conference.
“You lie awake at night worrying about what is that which will disrupt your business model,” he said. “Apple imessage is a classic example. If you’re using imessage, you’re not using one of our messaging services, right? That’s disruptive to our messaging revenue stream.”
In spite of all these concerns AT & T is very successful in gaining profitable iPhone customers. In the previous quarter AT&T enjoyed profit of $ 3.58 billion from $29 billion sales.
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