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Analysts’ View: AT&T’s New Plan Is Good for the Industry

For more than a year, industry executives have faced questions from analysts about when they would begin charging based on data usage — a setup known as a tiered-pricing model. The idea behind tiered pricing is that it will discourage people from using so much data that the network is taxed, and that it will give the carriers the flexibility to charge more for data as usage becomes even heavier in the future.

“Tiered smartphone data pricing is positive for the entire communications industry” and will provide “long-term revenue growth” as data usage continues to grow, Oppenheimer analyst Timothy Horan wrote on Wednesday.

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