Cost Behaviour for cost-volume-profit Cost for sending message to AT&T, whats the profit margin for SMS

to AT&T How strong relation should exist between cost and price charged to provide a service ? US Senate antitrust subcommittee Diff in price to transmit KB of data via text message vs to transmit kb of data via smartphone

Some operators - 20% of revenue from text messaging Worldwide over $60 Billion of revenue In 2010 forecasts - $72.5 Billion worth text messages worldwide In 2009 no of text messages increased by 50%, amount of data surpassed voice minutes Senator Herb Kohl, chairman of Senate Antitrust committee more than 37 law suits against wireless carriers Senator Kohl Prices increased by 200% in a competitive industry Prof Keshav 0.3 cents per message 2009 3.3 trillion text messages sent worldwide Estimated 5 trillion text messages worldwide by 2011. Charendoff assumed - Text Messages Found Money, no additional infrastructure required, negligible size hence negligible cost Text message traversed 2 wireless and 1 wired path Customer paid for both outgoing and incoming Only need to estimate wireless Wired cost negligible Charendoff a control channel 81 messages per minute Charendoff - $10 million for database assuming carrier would carry 1% of worldwide text messages which was $3.5 trillion Charendoff messages were stored in databases when not sent. Cost of storage $1000 per terabyte 1,343 terabyte needed Chanderoff negligible cost

Data flow Introduction Issues Recommendation Advantages and Disadvantages of Recommendation

http://www.zdnet.com/blog/mobile-news/at-t-data-throttling-and-the-great-customer-ripoff/6817

AT&T data throttling and the great customer ripoff Top 5% of data users in a particular area - speeds throttled AT&T doesnt tell users how much data they have before they get moved to the slower dial up speeds However, the data is estimated to be 2GB This was specifically true to customers with existing unlimited plan. Complainants against this throttle have been asked to lump it. But if they do they cannot use the iphone with Verizon or Sprint networks as both are CDMA networks The best option these customers have is to move to a capped plan where they know how much data they get at the cost. http://news.cnet.com/8301-1023_3-57378453-93/at-t-data-traffic-doubling-as-users-complain-aboutthrottling/ AT&T data traffic doubling as users complain about throttling Data Traffic doubled each year since 2007 Over last 5 years data traffic has grown by 20,000% iPhone is possibly the major contributor to data consumption, since its launch in 2007 Growth is driven by smartphones AT&T spent over $95 billion on both wireless and wired network Last year invested $20 Billion in its network, claiming more than 150,000 improvements to its wireless network alone. This year it expects to spend another $20 billion focusing on 4G, distribution of antenna systems and addition of more wi-fi hot spots around the country. First broke the news of throttling in July and started implementation in October 1, 2011 The top 5 users are taxed with lower speeds. Basically its not the individual use of data but its the data used by you relative to others in your area Policy is said to be vague and inconsistent The throttling policy seems to be a way of pushing customers from unlimited to tiered plans which start from $20 a month for 300 mb to $50 a month for 5gb of data

AT&T latest to build data center in western NC Read more: http://www.dailystar.com.lb/Technology/International/2012/Feb-23/164399-att-latest-to-

build-data-center-in-western-nc.ashx#ixzz1nFvx1pxk
(The Daily Star :: Lebanon News :: http://www.dailystar.com.lb)

Invest more than $200 million in data center in Western North Carolina