Observers might disagree about which of the new T-Mobile US marketing and retail packaging initiatives—zero rating music services or the Apple iPhone “free test drive” program is more significant.
Some might argue it is the zero rating of music streaming that is the more important, in a broad sense.
T-Mobile US “Simple Choice” customers will now be able to stream Pandora, Rhapsody, iHeartRadio, iTunes Radio, Slacker, Spotify, Milk Music and Beatport music without such usage affecting their data plan usage.
Zero rating of this type essentially has T-Mobile US subsidizing consumption of those particular applications.
And with all the confusion about “network neutrality,” and the stated concern over “treating all apps equally,” one wonders how long it will be until some complain that T-Mobile US cannot provide this value to its customers, as it favors streaming music over all other apps.
The other reason the zero rating is significant is because it illustrates one way end user value can be created when an app or service provider effectively lowers the price of using a particular app or class of apps.
Though the analogy is not completely perfect, the prior AT&T notion of offering sponsored data services to app providers on a voluntary basis, much as toll-free calling can be purchased by an organization, is largely apt.
Consumers win, T-Mobile US believes it wins, and the music streaming services arguably also win.
As has been the case in the past, a mobile service provider is able to take this approach because it has a new network, lightly loaded with traffic. Under those conditions, a service provider can afford to offer unlimited use of some feature because it has plenty of spare capacity, at the moment.
That ability to create a promotion taking advantage of a new and lightly-loaded network is not unprecedented. But the big unanswered question is whether some will challenge T-Mobile US right to offer such plans, because they are a “violation” of network neutrality.
Antivirus software is not enough. Apex Technology Services used its decades of IT and cybersecurity
experience to create budget-friendly network security packages every company needs.
Please take a moment to fill out your information so we can contact you directly regarding your request.
U.S. Secretary of State Mike Pompeo said he is looking at banning Chinese apps including social media platform TikTok this week. The move comes after …
It seems we spend the bulk of our time on devices these days, and many of us depend on the internet to help us complete our jobs, communicate with fam…
The Coronavirus pandemic has driven leaders to rethink the way that we do things, and although the threat to our health has placed many obstacles in o…
Cloud computing is far from being a novelty technology, but it's only recently that we've started to really use it to its full potential. The global c…
Today we get to the heart of the matter, that is, we will study all the most interesting and productive strategies for investing in cryptocurrencies a…