AT&T Changes Smartphone Plans, Will Verizon Follow?
CNNMoney
By David Goldman, staff writer
http://money.cnn.com/2010/06/02/technology/att_iphon ... »
NEW YORK (CNNMoney.com) -- AT&T announced new 3G pricing plans Wednesday that will make iPhone and iPad bills less expensive for most customers, but will also put a stop to unlimited data plans.
Under the new pricing scheme, 3G data service for AT&T smart phones (including the iPhone) will cost $15 a month for 200 megabytes. If customers download more than 200 MB, they will be charged an additional $15 for each subsequent 200 MB that they download.
For iPad customers and heavier smart phone users, AT&T will start offering a $25-per-month plan for 2 gigabytes of data. Under that plan, if customers exceed their allotment, they will be charged $10 a month for each additional gigabyte of data that they use.
Previously, AT&T charged a $30-per-month flat fee for unlimited data for both the iPhone and the iPad, as well as their other smart phones. AT&T will continue to offer a $15-a-month 250 MB plan for iPad users. The new pricing schemes will begin June 7.
The end result? Most customers will reap monthly savings of $5 to $15.
Roughly 65% of AT&T's smart phone customers use less than 200 MB of data per month and 98% use less than 2 GB, according to the company. Those percentages are likely a bit lower for iPhone and iPad users who tend to be heavier downloaders than other smart phone users.
"We're breaking free from the traditional 'one-size-fits-all' pricing model and making the mobile Internet more affordable to a greater number of people," said Ralph de la Vega, president of AT&T's mobile unit, in a statement.
But the announcement also means the end of unlimited data, a move that was not unexpected but dreaded by many heavy data users.
Since the iPhone debuted in the summer of 2007, AT&T's data service has grown by a staggering 5,000%, far exceeding the company's forecasts by several orders of magnitude, according to AT&T. Though AT&T has largely been able to manage that growth by making billions of dollars of network improvements across the nation, 3G service in New York and San Francisco is notoriously touch and go.
Analysts said it was just a matter of time before the company unveiled a tiered data plan that would force the small number users at the high end to pay more for the data that they download. Some experts have speculated that ending unlimited fees would reign in some data use to help AT&T unclog its network.
Still, some customers won't like the new changes, especially iPhone users who love to get the full use out of their devices. For many cell phone users, 200 MB sounds like a lot: According to AT&T, 200 MB equals about 1,000 emails without attachments, 150 emails with attachments, 400 Web pages, posting 50 photos to social media sites, and 20 minutes of streaming video combined. But for heavier iPhone users, that's just days worth of data.
It will be harder for most iPad users to exceed 2 GB of data in a month: 2 GB is 10,000 emails without attachments, 1,500 emails with attachments, 4,000 Web pages, posting 500 photos to social media sites, and 200 minutes of streaming video combined. Still, for those iPad users could easily go over 2 GB a month if they use the device as their primary computer.
There's good news for existing iPad and iPhone users who feel that the new plans will cost them more: AT&T said existing AT&T customers -- including the 50 million iPhone and iPad users in the United States -- have the option of sticking with their old $30 unlimited plan.
For those who want to use AT&T's 3G network on other devices like netbooks and laptops, AT&T will also offer data tethering for iPhone and other smart phone customers for $20 a month. Tethering will be available for the iPhone when Apple releases iPhone OS 4 this summer.
By David Goldman, staff writer
http://money.cnn.com/2010/06/02/technology/att_iphon ... »
NEW YORK (CNNMoney.com) -- AT&T announced new 3G pricing plans Wednesday that will make iPhone and iPad bills less expensive for most customers, but will also put a stop to unlimited data plans.
Under the new pricing scheme, 3G data service for AT&T smart phones (including the iPhone) will cost $15 a month for 200 megabytes. If customers download more than 200 MB, they will be charged an additional $15 for each subsequent 200 MB that they download.
For iPad customers and heavier smart phone users, AT&T will start offering a $25-per-month plan for 2 gigabytes of data. Under that plan, if customers exceed their allotment, they will be charged $10 a month for each additional gigabyte of data that they use.
Previously, AT&T charged a $30-per-month flat fee for unlimited data for both the iPhone and the iPad, as well as their other smart phones. AT&T will continue to offer a $15-a-month 250 MB plan for iPad users. The new pricing schemes will begin June 7.
The end result? Most customers will reap monthly savings of $5 to $15.
Roughly 65% of AT&T's smart phone customers use less than 200 MB of data per month and 98% use less than 2 GB, according to the company. Those percentages are likely a bit lower for iPhone and iPad users who tend to be heavier downloaders than other smart phone users.
"We're breaking free from the traditional 'one-size-fits-all' pricing model and making the mobile Internet more affordable to a greater number of people," said Ralph de la Vega, president of AT&T's mobile unit, in a statement.
But the announcement also means the end of unlimited data, a move that was not unexpected but dreaded by many heavy data users.
Since the iPhone debuted in the summer of 2007, AT&T's data service has grown by a staggering 5,000%, far exceeding the company's forecasts by several orders of magnitude, according to AT&T. Though AT&T has largely been able to manage that growth by making billions of dollars of network improvements across the nation, 3G service in New York and San Francisco is notoriously touch and go.
Analysts said it was just a matter of time before the company unveiled a tiered data plan that would force the small number users at the high end to pay more for the data that they download. Some experts have speculated that ending unlimited fees would reign in some data use to help AT&T unclog its network.
Still, some customers won't like the new changes, especially iPhone users who love to get the full use out of their devices. For many cell phone users, 200 MB sounds like a lot: According to AT&T, 200 MB equals about 1,000 emails without attachments, 150 emails with attachments, 400 Web pages, posting 50 photos to social media sites, and 20 minutes of streaming video combined. But for heavier iPhone users, that's just days worth of data.
It will be harder for most iPad users to exceed 2 GB of data in a month: 2 GB is 10,000 emails without attachments, 1,500 emails with attachments, 4,000 Web pages, posting 500 photos to social media sites, and 200 minutes of streaming video combined. Still, for those iPad users could easily go over 2 GB a month if they use the device as their primary computer.
There's good news for existing iPad and iPhone users who feel that the new plans will cost them more: AT&T said existing AT&T customers -- including the 50 million iPhone and iPad users in the United States -- have the option of sticking with their old $30 unlimited plan.
For those who want to use AT&T's 3G network on other devices like netbooks and laptops, AT&T will also offer data tethering for iPhone and other smart phone customers for $20 a month. Tethering will be available for the iPhone when Apple releases iPhone OS 4 this summer.
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Good!!! Enough with those damn Iphone threads in the Verizon forum!!! I am so, so, so sick of it!!!
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Tiered pricing is fine, but 2GB for $25 is kind of ridiculous. They should keep the $30 plan, but raise the number of GBs. And tethering should no longer be an additional cost in this day and age. It should just come out of your data buckets (so should texts for that matter, but I wont even start on that).
I think they will follow, but if they were smart they should wait and see what happens with ATT over the next quarter then evaluate their own situation.
Plus, they could really put some heat on ATT by offering BETTER, more robust plans at the same price point. Could be a way to steal a few customers from ATT.
I guess ATT finally made a move first, the plans are great for blackberry users, pretty bad iphone or android users. ...
(continues)
I think they will follow, but if they were smart they should wait and see what happens with ATT over the next quarter then evaluate their own situation.
Plus, they could really put some heat on ATT by offering BETTER, more robust plans at the same price point. Could be a way to steal a few customers from ATT.
I guess ATT finally made a move first, the plans are great for blackberry users, pretty bad iphone or android users. ...
(continues)
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In their new plan, tethering is a bolt-on cost/ability that does take from the same bucket of usage. I guess the alternative, under their business model, would be to charge $40 to $45 to cover both.
As long as they can justify charging extra for tether, they will.
As long as they can justify charging extra for tether, they will.
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How can you justify? Its pure greed. If I am being for a bucket of data, its my data!!!
Whether I am tethering or watching you tube videos on a device, data is being pulled and I am paying for it.
There is no reason to charge $20 except for pure greed. Its double dipping.
Chrisw
Whether I am tethering or watching you tube videos on a device, data is being pulled and I am paying for it.
There is no reason to charge $20 except for pure greed. Its double dipping.
Chrisw
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I don't disagree with you, and I'm certainly not justifying their pricing. I'm all for equal data pricing across the board. My point was, as long as THEY justify it, they'll CHARGE for it, too.
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yeah, but their justifications are pretty darn weak....whether they are there or not...Its double dipping plain and simple.
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I'd choose the latter hands down. Every time. And I HATE Apple.
Throw any parent with a kid/kids at that plan and you have a winner.
Granted... I'm not interested in limited data plans personally.
The *ONLY* thing missing, in my opinion, is the ability to limit the data.
Once you hit that 200mb cap your DONE for the month... no downloading what... so... ever (outside of wifi)
Granted... you might be able to do that with parental controls, but that shouldn't be needed IMO.
I think AT&T might actually do good with these plans.
Throw any parent with a kid/kids at that plan and you have a winner.
Granted... I'm not interested in limited data plans personally.
The *ONLY* thing missing, in my opinion, is the ability to limit the data.
Once you hit that 200mb cap your DONE for the month... no downloading what... so... ever (outside of wifi)
Granted... you might be able to do that with parental controls, but that shouldn't be needed IMO.
I think AT&T might actually do good with these plans.
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Yep I agree I believe that's what Cellenator was saying in another tread. This could be a real winner for many people.
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If I pair up pricing with kids, sure, but the one hesitation I would have, as a parent, is the LACK of unlimited usage. Unlimited is easier to deal with as a parent.
If there were a free cap to cut off usage, that would be awesome (and amazing).
If there were a free cap to cut off usage, that would be awesome (and amazing).
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I think, that for the most part, this is a mixed blessing.
It gives people a lower use option. After all the poo-hooing about wanting a smart phone without $30/month data fee gives them that option. (I wonder if the Discount will be less because of the lowered Data prices?)
On the flip side, it removes the unlimited option. For parents that means bad thngs. For power users that means Hello Verizon or Sprint (For now...?)
Anyone who has paid attention knows that this is where AT&T wants to go...
We'll see how ths plays out...
It gives people a lower use option. After all the poo-hooing about wanting a smart phone without $30/month data fee gives them that option. (I wonder if the Discount will be less because of the lowered Data prices?)
On the flip side, it removes the unlimited option. For parents that means bad thngs. For power users that means Hello Verizon or Sprint (For now...?)
Anyone who has paid attention knows that this is where AT&T wants to go...
We'll see how ths plays out...
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Judging by the numerous forum threads on the web, the ripoff $10 per month mandatory data plan since January 18th for basic "feature" phones, such as the enV3, has alienated thousands of users. Verizon would be well advised to ditch that plan for "feature" phones and go with something similar to the AT&T model for "smart" phones. It would make both classes of citizens feel much better about fairness in plan pricing.
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More users have said 'Baaaaaa!' and went along with the price changes like good sheep.
What remains to be seen... is if AT&T keeps its "dumb-phone" price points where they are (10/15$ a month with/without texting plans for unlimited data on a dumb-phone).
If AT&T keeps it's dumb-phones requirements the same (Unlimited Texting covers requirements on *ALL* phones on a family plan) and $10/month for data... or $15+/month data for a smart phone...
I could see this being a huge selling point for AT&T.
*MUCH* better data options for the Average user (Despite all the poo-hoo-ing by the minority power-users).
What remains to be seen... is if AT&T keeps its "dumb-phone" price points where they are (10/15$ a month with/without texting plans for unlimited data on a dumb-phone).
If AT&T keeps it's dumb-phones requirements the same (Unlimited Texting covers requirements on *ALL* phones on a family plan) and $10/month for data... or $15+/month data for a smart phone...
I could see this being a huge selling point for AT&T.
*MUCH* better data options for the Average user (Despite all the poo-hoo-ing by the minority power-users).
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