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AT&T changes iPhone data plans.


metsfan

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By David Goldman, staff writerJune 2, 2010: 12:48 PM ET

 

 

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.

 

 

New iPhone plan

Data...........New....Old

200 MB.......$15....$30

400 MB.......$30....$30

600 MB.......$45....$30

2 GB..........$25....$30

3 GB..........$35....$30

Source:AT&T

 

New iPad plan

Data..........New....Old

250 MB.......$15....$15

2 GB..........$25....$30

3 GB..........$35....$30

Source:AT&T

 

 

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.

 

Analysts say said the lower pricing tiers could help bring in new customers.

 

"We could be looking at a lot more people adopting the iPhone because of a much lower total cost of ownership," said Hugues De La Vergne, principal research analyst at Gartner.

 

End of unlimited

 

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. And other networks will likely follow suit soon.

 

"The problems AT&T had with its network will soon be seen on other networks with unlimited plans. Those other networks will have to do something to cap the usage of people who are using the highest amounts of data," said De La Vergne.

 

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.

 

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 -- but only if they subscribe to one of the new price plans. Tethering will be available for the iPhone when Apple releases iPhone OS 4 this summer.

 

Shares of AT&T (T, Fortune 500) and Apple (AAPL, Fortune 500) rose less than 1% Wednesday.

 

http://money.cnn.com/2010/06/02/technology/att_iphone_ipad/index.htm?hpt=Sbin

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This will be great for people who saw the "mandatory 30 dollar data plan" and were scared off, now it would just be 15 for them! I'm going to keep my $30/unlimited when i get the new iPhone since i'm an existing & established customer (i am secretly relishing this even tho it would be nice to save a few bucks, and i prolly will eventually).

 

- A

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Hehe Tmobile makes it easier than this. I knew it was overrated.

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AT&T still sucks anyway.

Agreed,you can say that again!

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Indeed, I prefer not to touch my cellphone screen and leave smudges all over it.
Looks at the post and says to self thats what screen protectors are for as that lady from New York New England Xchange (NYNEX)/Bell Atlantic now Verizon would say PLEASE MAKE A NOTE OF IT LOL

 

not trying to be sarcastic just being a little funny with it

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Looks at the post and says to self thats what screen protectors are for as that lady from New York New England Xchange (NYNEX)/Bell Atlantic now Verizon would say PLEASE MAKE A NOTE OF IT LOL

 

not trying to be sarcastic just being a little funny with it

 

Lol sarcasm does go a long way... You'd just have to go out of your way to buy a little something extra, just a minor hassle, yup...

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What the heck is the point of them getting rid of unlimited data? AT&T, Going back in time

 

The iPhone is so overrated

 

 

 

B)

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Nextel all the way. I had an iphone, did not fair well with me as a phone.

 

I want an iPhone, but not on Ma Bell! I can't stand at&t. I've been with Sprint for about 5 years now, (PCS 2 and Nextel 3) and I was with Nextel for 6 years prior to that. But now I'm thinking of going back to the Nextel side now that the new Motorola i1 Droid is coming out!

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Wirelessly posted via (Mozilla/4.0 (compatible; MSIE 6.0; Windows 98; PalmSource/Palm-D062; Blazer/4.5) Palm 690p 16;320x320)

 

Ma Bell, wow, you're showing your age there ENY haha.

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I want an iPhone, but not on Ma Bell! I can't stand at&t. I've been with Sprint for about 5 years now, (PCS 2 and Nextel 3) and I was with Nextel for 6 years prior to that. But now I'm thinking of going back to the Nextel side now that the new Motorola i1 Droid is coming out!

 

this i1 droid that your write about, it will have walkie talkie features? I need the 2 way 100% especially for work.

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Looks at the post and says to self thats what screen protectors are for as that lady from New York New England Xchange (NYNEX)/Bell Atlantic now Verizon would say PLEASE MAKE A NOTE OF IT LOL

 

not trying to be sarcastic just being a little funny with it

 

Had a screen protector on my phone before. They're a pain in the ass if anything else. Just be diligent about keeping the screen clean. You're either getting smudges on the screen itself or the screen protector. So it's kinda pointless. The only thing a screen protector is good for is keeping the screen from getting scratched up.

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That is the point - to keep it from getting scratched up. I have a screen protector for my itouch.

I'm more glad to have an itouch - don't have to worry about the downloading fees. Damn the iphone sucks. Sure with that you get a signal anywhere, but it's not worth the hassle.

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Without a data or VZ package, Verizon charges $1.99 per megabyte (1,024 kilobytes) for the mobile web on their cellular telphones.

 

Text messaging is similiar if you don't have a monthly bundle. It's like 15 cents per text message.

 

Currently, Verizon offers 25 megabytes per month for $9.99 or unlimited megabytes per month for $29.99 for cellular telephones in addition to the $1.99 per megabyte plan.

 

For Text Messaging, there's a 250 text message bundle per month for $5.00, 500 for $10, 1,500 for $15, and 5,000 for $20 in addition to the 15 cent per text message plan. These are sent and received (so a $5 bundle would entail 125 messages to allow you to receive a similiar number back).

 

If you love the mobile web and text messaging, they can add an additional $49.95 per month to your Verizon cell phone bill.

 

Verizon even offers a Mobile E-Mail package (allow you to receive e-mail on your cellular telephone) for $5.

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2 gigs is a llllooooootttt of data, like, cable and dsl providers often have 2-5 gig caps on their internet service...... Even with my wild internet usage, photo uploading, email lots of speed tests etc i still have not gone over 500 megs....

 

- A

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To some people, 2 GB is not alot of data. And besides, why does one want to worry about how much data they've used?

 

cable and dsl providers often have 2-5 gig caps on their internet service......

- A

 

If that were true, they would have cut me off by now :)

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Wirelessly posted via (Mozilla/4.0 (compatible; MSIE 6.0; Windows 98; PalmSource/Palm-D062; Blazer/4.5) Palm 690p 16;320x320)

 

Ma Bell, wow, you're showing your age there ENY haha.

 

LOL!!! I'm only 27!!!:cool:

 

this i1 droid that your write about, it will have walkie talkie features? I need the 2 way 100% especially for work.

 

Yes it's a traditional Nextel, but It's also on the Android 1.5 OS! That may actually make me give up my Crackberry! Today I got to play with my friends i1 demo, and it loaded NYCTF flawlessly! I am in love with that phone!!!

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