AT&T has officially confirmed that there’ll be a price hike of $5 for its age-old unlimited data plans, making it the latest carrier trying to get users off older plans. The Cellular says that the price hike that is apparently the first in seven years since the plan was introduced, is an attempt to provide faster, more reliable services to all its customers without any network congestion.
The new price hike will go into effect starting February 2016, as AT&T customers on its unlimited data plan will now have to pay $35. It is worth pointing out that the new $35 price will only apply to the data portion of the plan. As customers will still have to pay separately for their calling and texting plans.
“Our unlimited data plan customers continue to receive an incredible value, especially those taking advantage of our 4G LTE network,” AT&T said in a statement confirming the news.
AT&T promises customers on its unlimited data plans that their data speeds will not be capped, before they reach the 22GB limit. Earlier, the company had to pay $100 million in fine to the Federal Communications Commission (FCC) after it was found guilty of reducing data speeds during the second half of the month.
Compared to other carriers, AT&T’s $5 price hike seems rather modest. Verizon recently bumped prices of its unlimited data plans from $30 to $50. T-Mobile has also raised the price of its unlimited data, talk and text plan by $15 which now costs $95 for new customers. While Sprint charges $70 for its unlimited plan offering similar services.
To recall, AT&T stopped offering its unlimited data service to new customers in 2010 which was instead replaced by tiered pricing models. Other carriers followed as even Verizon dropped the idea to offer unlimited plans for new customers in 2011. The ‘Big Red’ says that only 1 percent of its customers are still using its unlimited data plans.