Video Speed Trap Lurks in New iPad
Users Find the Superfast 4G Link Carries a Big Cost: Churning Through Data Limits in Mere Hours — Brandon Wells got the new iPad last Friday, started wirelessly streaming March Madness games the next day and by Saturday night was out of gas.
Context & Ripple Effects
The new iPad’s faster cellular connection turns a longstanding tablet-data constraint into a more immediate consumer problem: earlier coverage examined how much video fits within carrier data plans and streaming restrictions on the first iPad 3G.
The pressure is not confined to cellular networks. iPad use had already changed hotel Wi-Fi economics and speeds, while cloud-delivered Windows software demonstrated that the tablet could support bandwidth-intensive uses beyond conventional video.
First-order effects
- New iPad owners who stream high-bandwidth video over 4G can exhaust monthly data allowances rapidly, forcing them to curb use, shift to Wi-Fi, or incur additional data costs.
- Video viewing becomes a visible constraint on the device’s headline connectivity benefit: faster access also accelerates consumption of a capped resource.
Second-order effects
- Hotels and other Wi-Fi providers face greater demand from iPad users seeking to avoid cellular limits, extending the capacity and pricing pressure already associated with tablet traffic.
- Video and cloud-app providers must account for data-plan friction when serving iPad users, because a smoother mobile experience can make each session more expensive for the customer.
Third-order effects
- If faster mobile connections continue to be sold alongside finite allowances, consumer demand for rich media will shift competition from raw network speed toward Wi-Fi access, usage controls, and pricing that absorbs bandwidth costs.
The trend: Mobile broadband is entering a scarcity pass-through phase in which faster devices expose the mismatch between high-bandwidth services and capped consumer data plans.