Thursday, October 30, 2008
AT&T's ulterior motive - 3G vs. WiFi
All hail! AT&T has given all the iPhone users free WiFi access inside their hotspot network at places like Starbucks. Pretty cool, huh?
Not so fast... While this may seem like altruistic behavior, it is just good business. 3G data is pretty darn expensive to deliver. If an AT&T customer with a dual-radio device, like an iPhone, is within range of their WiFi network, then it saves them a ton of cash to move that user onto the WiFi.
So, while it is definitely a nice capability for users, don't think AT&T is doing you a favor. They are just reducing their costs. On the other hand, if they suddenly enable VoIP over that free WiFi, the rules really would start changing.