Carriers nix unlimited data plans

The move away from unlimited data plans is seen as a reaction to the continued increase of media consumption on mobile phones, which has caused well-publicized network congestion. Both networks are rolling out speedier 4G networks that handle more traffic and cost less. The bottom line is that by switching to tiered plans as well as building 4G networks, the carriers are positioning themselves to gain from consumers' increasing appetite for mobile media while they spend less to provide it.

The sole carrier for the iPhone

The sole carrier for the iPhone, AT&T, is replacing its unlimited plan ($29.99) with DataPlus (200MB for $15/month) and DataPro (2GB for $25/month), with the option of additional data (200MB for $15 or 1GB for $10) and a tether for $20/month (which allows iPhone users to use the phone as a broadband connection device for laptops and netbooks). New iPad customers will not be able to take advantage of the unlimited plan but will be offered 2GB for $25/month.

AT&T states that its new, tiered plans will make the mobile Internet affordable to more people, and that 98 percent of its current smart phone customers use less than 2GB of data a month on average.

Many in the industry question whether the demise of the unlimited data plans will have a dampening effect on the consumption of mobile content or even on the purchase of smart phones, citing consumer wariness about unclear data plans. But any significant impact — on mobile content producers, merchants, marketers or consumers — remains to be seen.