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June 10, 2010
AT&T New Data Plan Could Spell Bad News For Music Apps
By Bruce Houghton
AT&T is replacing its $29.99 per moth unlimited data plan, popular with iPhone and iPad users, with $15 (200MB) and $25 (2G) plans. While a reported 95% of mobile users do not currently exceed the 2G limit, increased use of new video and music in the cloud applications could lead to additional charges.

Unlimited mobile data has long been considered an unsustainable model by some analysts, and it is believed that other cell services will also set limits. That's not good news for a growing list of companies delivering data heavy music services like downloads and video or music streaming to smartphones.

Perhaps the best hope for many of these music tech startups is the expansion of offline playlist caching already available with Spotify, Slacker and the new Rdio service announced today. When a few thousand favorite songs can be stored and updated on a users smarthphone, the need for a constant and increasingly expensive connection becomes less critical

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