New AT&T data plans went into effect yesterday and cost $5 more than old plans, but also allowing for more data usage. However, how will consumers react to the increased data charge?

The explosive growth in smartphones, mobile applications, mobile video and other mobile services has resulted in unprecedented consumer demand for mobile data. Wireless carriers are under pressure to meet these demands and are moving away from the previous standard of unlimited data plans to test new plans to seek to address the issue. 

?Less cost per byte is not going to mean anything to consumers,? said Rich Karpinski, senior analyst for mobility, Yankee Group, Boston. "What is really going to hit them is the extra $5 it costs.

?The challenge for consumers is that they don?t know they are paying for,? he said. ?They don?t know how it relates to what they are doing on their phone.

?Consumers are flying blind in the new world of no unlimited data.?

Trial and error
The new AT&T plans include three smarpthone plans, one that offers 300MB for $20, one with 3GB for $30 and another with 5GB for $50.

Customers who need additional data will pay $10 per additional gigabyte or pay $20 or an extra 300MB.

The carrier also introduced two new tablet plans offering 3GB for $30 and 5GB for $50.

?We are in the very early stages of the move away from unlimited data plans and carriers are trying out a lot different strategies,? Mr. Karpinski said.

?In the next year, we will see a lot of sorting out of services for consumers and operators to find the right pricing structure,? he said.

Sprint is one of the only carriers left offering an unlimited data plan, making this a good deal for consumers. This is especially true now that Sprint offers the iPhone.

T-Mobile is also positioning itself at the value end although it also curbs customers? data usage with lower network speeds over a certain limit.

Last week, T-Mobile and Walmart, which began a collaboration last year, announced unlimited 3G talk, text and Web plans for $45 with no contract. Data speed is throttled after reaching a preset limit. 

AT&T and Verizon Wireless offer better coverage than other carriers, which is a draw for many consumers. However, that coverage typically comes at a higher price, with AT&T and Verizon Wireless positioning themselves at the higher end of the market with their pricing structure.

?There is a tradeoff that consumers have to make between good coverage offered by AT&T and Verizon and cost,? Mr. Karpinski said.

?Everyone wants to use smartphones for videos and a higher data usage services,? he said. ?There is a decision consumers have to make if they are going to pay the price to be able to download videos on their phones."

According to AT&T, the new plans are intended to meet the needs of customers, who are using more data than ever before.

To address the confusion that some smartphone and tablet users have over how much data they need, AT&T offers a data calculator where customers can estimate usage for their typical data activity.

The plans will be in effect for new customers. Existing customers will be able to keep their existing plans or choose one of the new plans.

Customers will receive usage alerts as they consume data within their plan.

?For carriers, they want the services to be consumed but if consumers are worried about the underlying costs, it could stall growth for services such as video,? Mr. Karpinski said.

Wireless networks want the new services to take off but at the same time they are tamping them down by increasing prices.

Carriers are expected to test a variety of other ways to price data usage, including advertising, different pricing by time of day and loyalty programs, to help alleviate the cost increase for consumers.

?It is really a tricky time,? Mr. Karpinski said. ?It is a feeling out process between consumers and operators.?

Final Take
Chantal Tode is associate editor on Mobile Marketer, New York