Wall Street thinks the cap is about higher prices and price discrimination and it is going to be flowing in extra money and quickly. Customers inevitably will use more mobile bandwidth and consumers will ultimately pay as much as 50% more because of the change. The low cap also protects the wireless telcos lousy and over-priced video packages. With the low cap rates almost everyone will need to maintain their landline broadband for free wifi. There's nothing wrong with a cap at a reasonable level at least as high as today's 5-10 gigabytes. A 2 gigabyte cap will be destroyed by the market as Verizon + AT&T will soon marginalize wireless competition.
One of the biggest problems, developers and consumers say, is that users are not sure how much bandwidth they are consuming with an app. AT&T customers should be able to track data use via the company’s Web site portal and receive alerts when they near their quotas but is their an API available to provide more transparency? I doubt it. All mobile apps need WiFi only options and must show usage patterns and make it transparent about what the typical data usage is for various applications.
Game developers have been trying to add more robust features to games to take full advantage of the iPhone, but they might scale back features like adverting, location based multi-player. Games will have to be considerate of bandwidth usage or they may soon find themselves without any players if parents start to look at data monthly data bills.
Rapidly growing Pandora now has 54 million users who listen an average 13 hours a month over the internet, but only a fraction of its customers currently use the app over 3G. Pandora has been striking deals with auto OEM's to embed the service in radios. It remains to be seen if 4G will be the answer to the bandwidth issue and if cellular (LTE) will take over satellite as the preferred distribution means.
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