Content Providers and App Developers to Subsidize LTE/3G Bandwidth Costs? - MacRumorsOpen MenuShow RoundupsShow Forums menuVisit ForumsOpen Sidebar
Skip to Content

Content Providers and App Developers to Subsidize LTE/3G Bandwidth Costs?

overview bucket 4g
A story that is getting some traction this morning is a Wall Street Journal article about how quickly new iPad users are consuming their monthly bandwidth allotments over LTE. We covered this story on our iOS Blog. While the conclusion may seem an obvious, carriers are beginning to consider other ways to help shift the bandwidth cost away from the consumer.

In particular, the Wall Street Journal notes that AT&T is considering a plan to do just that by allowing the content providers to pay for usage of their apps:

AT&T, for example, is studying a plan to give app developers and content providers the option to pay for the mobile data their products use, thereby keeping those apps and videos from counting against a user's allotment of data, kind of like an 800-number for apps.

If implemented, this would presumably allow bandwidth usage for certain apps to be free. For example, watching shows from a TV network app such as ABC Player might not count against your monthly bandwidth allotment. Instead, ABC would pay AT&T (or Verizon) for the mobile bandwidth consumed. In return, ABC would likely see increased usage of their app to watch shows and more revenue from in-show advertising.

Mobile carriers in the U.S. have been moving away from unlimited bandwidth plans over the past few years. Instead bandwidth is sold in specific allotments (2GB, 3GB) per month with additional fees for overages.

Popular Stories

iOS 27 Next to iPhone

Here's When iOS 27 Rolls Out Today in Every Time Zone [Update: It's Out]

Sunday September 13, 2026 3:00 am PDT by
Update 10:04 a.m.: iOS 27 is rolling out now, though it may take a bit for all users to see it, so keep checking! Apple is about to release iOS 27, which will finally deliver more advanced Siri AI capabilities as well as a variety of other refinements, improvements, and new features to iPhones. It's Apple's biggest software update of the year, and Apple announced at Wednesday's iPhone event...
iOS 27 Icon iPhone

iOS 27 Available Now With These 8 New Features

Monday September 14, 2026 9:00 am PDT by
Update — 10 a.m. Pacific Time: Apple has released iOS 27. During its iPhone 18 Pro and iPhone Duo event last week, Apple announced that iOS 27 will be released widely on Monday, September 14. iOS 27 should be available around 10 a.m. Pacific Time / 1 p.m. Eastern Time today via the Settings app, under General → Software Update. Below, we have highlighted eight new features and...
Apple iCloud Plus expansion hero

iCloud+ Now Includes Apple TV, Apple Arcade, and Curated Apple Music Stations in Over 100 Countries

Tuesday September 15, 2026 1:43 am PDT by
Apple today announced a new subscription initiative that turns paid iCloud+ subscriptions into a broader services bundle in more than 100 countries. In select countries, Apple says every paid iCloud+ plan, including the cheapest 50GB tier, now includes Apple TV and Apple Arcade "at no additional cost," while family sharing extends the storage, TV and Arcade access to up to five people....

Top Rated Comments

189 months ago
This is a terrible idea. One of the best things about the App Store for developers is that it allows small companies to compete against the big boys. Doing this allows the big companies (that can afford to) pay the bandwidth costs, while smaller companies that might not be able to afford this will lose out, as the customer will always go to the app that doesn't count against their usage allowance
Score: 34 Votes (Like | Disagree)
miles01110 Avatar
189 months ago
Interesting idea, although that just means these apps will just turn into Hulu (ads every 3 minutes) or you'll have to pay a subscription fee, which is basically the same thing as paying for the data plan.
Score: 29 Votes (Like | Disagree)
Porco Avatar
189 months ago
I'm sure it is great to have LTE speeds... but when you've got 3GB data caps I don't really see the point for the majority of users.

I don't really like this idea either though, the answer is for the carriers to stop being so ridiculous and invest some of their huge profits in more infrastructure, not undermining whatever is left of Net Neutrality.
Score: 18 Votes (Like | Disagree)
189 months ago
This is just a variation of getting around net neutrality, and puts the smaller shops at a huge disadvantage against the big guys. Don't think that this will stop at being an optional service for developers. And don't think the costs won't be passed back on to the user, anyway.
Score: 16 Votes (Like | Disagree)
189 months ago
Horrible idea.
Score: 13 Votes (Like | Disagree)
189 months ago
It's just going to make those content providers raise their prices elsewhere (online content, cable costs etc) so the consumer will end up paying for it somehow.
Score: 9 Votes (Like | Disagree)