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AT&T says 5G will be priced at home Internet pay more for faster speeds

AT & T VD Randall Stephenson.AT & T CEO Randall Stephenson said today that 5G is likely to be priced in the same way as wireline Internet, with customers paying more for faster speeds. With 5G, "I'll be very surprised if … the price system in wireless does. It doesn't look like the pricing system you see in a fixed line," says Stephenson during a revenue today. (See transcripts.) Some customers "is willing to pay a premium of 500 Mbps to 1 Gbps speed and so on" continued Stephenson. "And so I expect that is the case. We are two or three years away from seeing it play. " Generally, wireline home Internet Services has been priced based on speed, a subscriber pays more for 100 Mbps than 50Mbps, for example, mobile pricing is usually the same no matter what speed you At the same time, mobile operators have historically introduced much stricter data capabilities and overcharges than home providers, but there is some overlap between pricing structures, especially as Internet providers on the Internet face data protection, but in general, customers have paid for speed at home. -Internet and for the data set in mobile. AT&T has experience of both types of pricing, as it offers mobile service nationwide and cable networks in 21 states. On mobile, AT&T has redefined unlimited smartphone data in recent years But it also sells smartphone plans that allow customers to use less than 10 GB of data every month before encountering extreme interruptions…

 AT & T CEO Randall Stephenson stands with his arms crossed in front of a background with AT&T logos.

AT & T VD Randall Stephenson.

AT & T CEO Randall Stephenson said today that 5G is likely to be priced in the same way as wireline Internet, with customers paying more for faster speeds.

With 5G, “I’ll be very surprised if … the price system in wireless does. It doesn’t look like the pricing system you see in a fixed line,” says Stephenson during a revenue today. (See transcripts.)

Some customers “is willing to pay a premium of 500 Mbps to 1

Gbps speed and so on” continued Stephenson. “And so I expect that is the case. We are two or three years away from seeing it play. ”

Generally, wireline home Internet Services has been priced based on speed, a subscriber pays more for 100 Mbps than 50Mbps, for example, mobile pricing is usually the same no matter what speed you At the same time, mobile operators have historically introduced much stricter data capabilities and overcharges than home providers, but there is some overlap between pricing structures, especially as Internet providers on the Internet face data protection, but in general, customers have paid for speed at home. -Internet and for the data set in mobile.

AT&T has experience of both types of pricing, as it offers mobile service nationwide and cable networks in 21 states.

On mobile, AT&T has redefined unlimited smartphone data in recent years But it also sells smartphone plans that allow customers to use less than 10 GB of data every month before encountering extreme interruptions at speeds of only 128 kbps.

AT & T Mobile already has some speed-based differences in its plans. For example, AT&T limits video streaming to 1.5 Mbps (about 480p quality) unless customers pay for a more expensive plan that allows streaming in 1080p. What Stephenson described today seems to go beyond that, requiring customers to pay more for faster speeds for all online activities.

Pay more … and then more?

A key issue for 5G customers is whether they have to pay for more data and for higher speeds or if it were just one or the other. Given that Stephenson says that AT & T’s 5G pricing will see “something that the pricing regime you see in fixed line”, we can get some tips on how AT&T deals with home-use Internet today.

The answer – not surprisingly – is that AT & T Home Internet customers pay more for higher speeds and for unlimited data. The AT&T fiber-to-home Internet costs more for gigabit speeds than it does for 100 Mbps, and AT&T also charges different rates for different speeds on its older and slower DSL lines.

But only paying for access to higher speeds t guarantees that you can use these speeds without paying again for data transfer. An AT&T home user who actually uses their highest speeds will consistently blow AT&T’s home data loss. AT&T Home Internet customers receive 1TB per month and pay an additional $ 10 for each additional 50GB block. Customers can alternatively upgrade to unlimited home internet information from AT&T for an additional $ 30 per month.

If 5G mobile services are priced the same, you pay a higher base rate for faster speeds and set up additional charges if you use those speeds pushing you past the data cap.

Another unknown is which restriction policy would apply to 5G. With 4G, AT&T customers who buy unlimited data can use 22GB a month before facing potential slowdowns, even if these slowdowns are only introduced in congested network areas.

Speed ​​varies greatly by location

Justification of speed-based pricing on the mobile phone is more difficult than with internet on the Internet, because the speeds vary when smartphone users move and as public places become more or less crowded. Of course, mobile operators can easily attract a user’s speed, preventing them from getting higher speeds even in areas where the network supports it. But mobile network mobility means that the highest speeds will not be available in all areas, no matter how much customers pay.

Home Internet services can more easily deliver consistent speeds than mobile networks and 5G does not necessarily have to change it. Early 5G deployments and carrier statements show that the highest 5G rates will be reserved for small pockets in densely populated areas. This is because the 5G’s maximum speed will be available only on a millimeter wave spectrum, with signals not traveling far and easily blocked by walls and other obstacles. Considering paying extra for faster 5G speeds, it doesn’t necessarily mean you get those speeds all the time.

AT & T’s first 5G user is a company

So far, AT & T’s real 5G is not the 4G that AT&T renamed “5G E” is available in parts of 19 US cities, but it can only be used with a Netgear Nighthawk mobile hotspot. Given that AT & T does not yet offer 5G smartphones, this early 5G service is used by customers to configure Wi-Fi networks.

Companies are the first customers, Stephenson told investors today:

From a 5G standpoint, what we see when it comes to admission tends to be business. In fact, it is exclusively business for us right now. It works as a LAN replacement product. And we have a very impressive demand, where we show off the 5G service from companies that say “We want to put in a router” and that will be their LAN replacement.

AT & T’s 5G was launched in December for “selected businesses and consumers,” with AT&T saying it will be widely available this spring. At general release, customers will be able to get Nighthawk for $ 499 in advance and 15GB of data for $ 70 per month on a compatible plan and no annual commitment, AT&T says at that time.

Verizon is the only major operator 5G on a smartphone, but Verizon’s mobile 5G is only in Chicago and Minneapolis, it is barely available in these cities, it requires the use of a 4G Motorola phone connected to a 5G hardware , it requires an unlimited data plan and it costs $ 10 extra a month. Verizon also offers the 5G home Internet, based on a non-standard version of 5G, for $ 70 a month in small portions of some cities.

T-Mobile has said it doesn’t charge more for 5G.

Today, Stephenson said that AT&T will receive nationwide 5G coverage next year. As Stephenson said AT & Ts’s 5G pricing will play out over the next two or three years, we have to wait a while to find out exactly how to compare it to 4G prices.

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