Flat-rate mobile broadband fees will go, says IBM

Mobile broadband customers could be inspired to switch service providers in the future after a new report said flat rate fees are set to be a thing of the past.

A recently-published study by technology giant IBM said that under the current system there is “no way” for rival firms to compete.

Currently most mobile broadband providers charge a standard rate set to a usage policy for customers using mobile phones or mobile broadband connections on laptops and netbooks.

However, that is all going to change according to IBM, which said as LTE and WiMAX networks increase their foothold, carriers will cease in their attempts to block “over-the-top” providers using their networks.

IBM has recommended that service providers forge new relationships with players like Skype, which offer users free video calls using their mobile network, in order to maximise the business potential of their networks.

Such a move could lead to a number of mobile broadband users comparing various deals to ensure that they are benefitting from a connection that best suits their cost and usage needs.

IBM claimed that in the next five years a tiered pricing approach will be adopted to replace the flat-rate system currently in operation.

Ekow Nelson, global leader for the communications sector at the IBM Institute for Business Value, said: “If people value connectivity then they must pay for connectivity.

“With all-you-can-eat models there’s going to be no way for carriers to compete. This will be an adjustment because most users have been conditioned to enjoy unlimited access to over-the-top services for free.”