Families looking to meticulously manage their monthly budgets have a major, highly impactful new development to consider today. AT&T is moving aggressively to build out 'FirstNet,' the dedicated nationwide broadband network specifically reserved for first responders. According to the regulatory filing, while billed as a public safety initiative, winning this massive government contract provides AT&T with billions in federal funding and exclusive access to highly valuable spectrum that they can leverage commercially.
The concept of shared data was initially pitched years ago as a way to simplify family billing, but it quickly became a source of intense household anxiety. Now, as the industry pivots aggressively back toward 'unlimited' tiers in 2017, that anxiety hasn't disappeared; it has merely changed shape. Instead of worrying about massive overage fees at the end of the month, parents are now forced to navigate the complexities of data deprioritization and strict video resolution throttling.
To fully understand why this is happening, it helps to look at the typical family plan trajectory. Over the last few years, the average household has more than doubled its cellular data consumption, almost entirely driven by mobile video streaming on platforms like YouTube and Netflix. Carriers are aggressively adjusting their entire pricing models to accommodate this massive strain on their networks, moving toward strict per-line configurations disguised as unified family plans.
We are also seeing the explosive rise of the cable MVNOs. With Comcast and Charter entering the wireless space by piggybacking on Verizon's network, the traditional telecom operators are facing a completely new type of threat. These cable giants are bundling wireless service with home internet, creating incredibly sticky ecosystems that drastically lower consumer churn rates.
Another massive factor at play this year is the looming shadow of the 5G transition. While actual 5G deployment is still years away from widespread consumer adoption, carriers are aggressively hoarding capital and spectrum. They need billions of dollars for the next-generation hardware rollout, and the easiest place to find that capital is by slightly tweaking the profit margins on current LTE plans under the guise of network upgrades.
We also absolutely cannot ignore the highly volatile regulatory environment at the FCC right now under Chairman Ajit Pai. With heated debates over the impending repeal of net neutrality rules making daily headlines, carriers are rushing headlong to implement zero-rating programs and targeted advertising networks, stress-testing the boundaries of what is legally permissible before the rules officially change.
Stepping back to analyze the broader market context, 2017 is proving to be the year of the 'Unlimited' war. After years of trying to force consumers into strict data buckets, the major carriers have completely capitulated, largely driven by T-Mobile's relentless marketing pressure. However, this new era of unlimited data is littered with heavy restrictions, including hotspot caps and optimized video streams, proving that true unlimited no longer exists.
So, what does this mean for your bottom line? If you are managing multiple lines, seriously look into prepaid family plans from major network MVNOs. You can very often get the exact identical geographic coverage for half the monthly price, provided you are willing to bring your own devices.
Don't let the artificial pressure of a 'limited-time promotion' force you into a rushed, poorly calculated financial decision. In the telecom industry, there will always be another major deal waiting just around the corner.