I believe there will be a continued demand for unlimited service rate plans in the $40-$60 per month range such as those being offered by providers like MetroPCS, Tracfone and Boost Mobile. The low-end market of pre-paid plans as grown to over 22% of the total market vs. 16% three years ago, according to Sanford Bernstein. Martin Peers from the WSJ
picked up on my idea
that we could see the Google Nexus show up heavily discounted to compete in this prepaid space. Meanwhile the major carriers struggle to grow ARPU in spite of increased costs due to bandwidth "hogs." Even Verizon's CTO, Dick Lynch says metered billing would benefit most consumers because they would not be subsidizing others. With plans to move to LTE by AT&T and Verizon, I see that exacerbating the problem. You provide faster water through the spigot; the users want to drink more water. Carriers and handset makers have created an addiction for what will become an expensive habit. The question is will users trade down-market for cheaper service instead of staying top-shelf at pure 4G.