The strong subscriber reaction to AT&T’s discontinuation of fixed rate data services and its implementation of a new tiered pricing strategy has highlighted the dilemma among network operators that though fixed rate data services are unsustainable, they are the most popular type of plan with customers.

Customers prefer fixed rate data plans. This is true because they take comfort in knowing what their phone bill will be at the end of each month. In markets where fixed rate subscription plans are available, most subscribers chose them.