T-Mobile to throttle data plans after 5GB
For cell carriers, the struggle continues to find a business model that balances rapid growth in mobile Web access with the demand for affordable service contracts. Earlier this week Canadian carrier Rogers was reported to be considering a flat-rate data plan that customers could use with multiple Internet-connected devices. And Tuesday T-Mobile announced it would drop overage charges on its unlimited data plan, but will restrict some services for those who exceed the 5GB limit.
Jim Evans reports that T-Mobile's "throttling" will allow e-mail and Web access to continue after the customer hits her 5GB monthly plan limit, but high-bandwidth services such as streaming video will be limited. Evans notes that Sprint has no overage changes in its new 4G Overdrive service, but does on the 3G version.