With more and more iPhones in circulation, that means more expensive data plans are being sold by AT&T and one would think a new revenue stream. Not so fast says the Wall St. Journal. They say "it's doubtful that new data revenues from web browsing and entertainment services will be profitable, as measured by return on capital spend." AT&T could be a victim of the success of the iPhone, as users continue to download bandwidth hogging applications.  The result will be a need for AT&T to invest in their networks to support the steady stream of new iPhone users. Today's report certainly doesn't cast a positive light on the yet-to-be approved SlingPlayer for iPhone app, an app that streams video from a home set-top box.

iPhone users download games and videos at a rate of two to four times as much as competiting smartphones. Let's face it, the iPhone makes it easy to experience the real Internet and the result is a not so profitable return on data plans, if you are AT&T. How does this affect the iPhone user? Will AT&T increase data rates and/or plans? New iPhone features like MMS will result in more bandwidth, but this will likely require a more expensive plan. What about the rumored rate cut AT&T was planning? Newer 4G networks will offer a better return, but they are not on the immediate horizon.

[via WSJ]