Andre Yoskowitz
19 May 2012 0:48
AT&T Mobility CEO Ralph de la Vega has announced today that the company will reduce the amount it subsidizes for new phones.
The move will help the company "raise revenue," says the exec.
In addition to not giving back to the consumer, AT&T will follow Verizon's lead and create shared data plans for multiple devices and families who prefer to share a "bucket" of data, minutes and texts.
"We need to...allow customers to connect those tablets to some of the existing data plans that they have to be able to share them in a way that will drive more revenue for us, but also give a good deal to customers," says de la Vega.
The company also plans to "keep 2012 smartphone sales limited to 2011 levels to cut down on upgrade costs" including subsidies on new devices. "You can take it to the bank that our thrust is to lower that in every case we can."
What this means for consumers is higher prices up front, even when you sign up for a new two-year contract.