T-Mobile's data cap reversal hints of 3G network uncertainty

T-Mobile dropped a data usage limit of 1GB a month over 3G networks used with the coming Android G1 phone, but said Thursday it still reserves the right to set restrictions and is working on the terms.

The turnabout might please some potential G1 customers for now, but the issue raises bigger questions over whether T-Mobile and other wireless carriers will have the capacity on their 3G networks to handle the demand from feature-rich cell phones that stream video, music, and other data.

[ InfoWorld's Tom Yager got the nitty-gritty on the G1 Android smartphone | Yager also got a hands-on first look at the G1 |  Special report: All about Google's Android ]

"The wireless carriers want everybody on their networks, and they want the data junkies, but they also seem to be saying [with their caps] that 'We know you're hooked on data but you are using too much, so screw you,'" said Kevin Burden, an analyst at ABI Research Inc. in Oyster Bay, N.Y.

In T-Mobile's case, the network for 3G over HSPA (High Speed Packet Access) is in the early stages of buildout, with 16 cities on HSPA service today and a total of 22 cities expected to be ready by the time of the G1's U.S. launch on Oct. 22. A total of 27 markets will have 3G HSPA service in mid-November, representing 80 percent of T-Mobile USA's 31 million customers.

In addition to creating a "PR nightmare" for itself, Burden said T-Mobile's earlier 1GB cap on data usage and its broader language saying it will set new terms eventually, "show that T-Mobile doesn't have confidence in its young network -- yet."

The 1GB cap on T-Mobile's Web site was noticed by an Engadget Mobile reporter, but was pulled back by T-Mobile after Engadget and at least one other blog mentioned the restriction, generating angry reader comments.

In the earlier T-Mobile language, the penalty for users exceeding the 1GB cap could potentially have meant facing network speeds reduced to 50Kbps, significantly lower than the 3Mbps of theoretical throughput on many early-stage HSPA networks.

The mention of the 1GB cap was removed on the T-Mobile Web site late Wednesday and replaced with language stating: "We may temporarily reduce data throughput for a small fraction of customers who use a disproportionate amount of bandwidth. Your data session, plan, or service may be suspended, terminated, or restricted for significant roaming or if you use your service in a way that interferes with our network or ability to provide quality service to other users."

In an e-mail to Computerworld, a T-Mobile spokesperson said the carrier "removed the 1GB soft limit from our policy statement, and we are confident that T-Mobile G1 customers will enjoy the high speed of data access over our 3G network. The specific terms for our new data plans are still being reviewed and once they are final we will be certain to share this broadly with all customers."