|Free WiFi is AT&T's Biggest Fear!|
AT&T's biggest fear is that the current grassroots movement of free WiFi hotspots crushes their hopes about getting customers to subscribe to 4G LTE. AT&T is terrified that their customers will not subscribe to their shoddy 3G and 4G LTE network data services for $60-$100 per month. Free ad supported WiFi is coming to the US the near future and this is the first step AT&T is making slow down the inevitable.
Most smart customers are already minimizing their data plans and using free WiFi for data connectivity whenever possible. Many customers are using WiFi to fill in dead zones and making phone calls on WiFi when AT&T cannot provide voice coverage in areas. AT&T is simply a dumb pipe and will never be a content rights holder and therefore will eventually have to compete with customers searching for free WiFi access points. Can 4G LTE compete with Free WiFi?
The simultaneous timing of this announcement is not surprising as it was overshadowed by their massive announcement that they were acquiring T-Mobile. AT&T's PR people had hoped the story would get buried in the major news announcement but its important news to DeadZones.com. It doesn't surprise me that AT&T is started to get scared about the huge grassroots movement of businesses and broadband subscribers opening up their access points for free use. WiFi hotspots are growing 25X faster than 3G or 4G cell phone towers. Why because it is free and doesn't require expensive data plans