AT&T announces new data plans, changes iPad and iPhone plans on the eve of 4G release
June 2, 2010 - By Justin E. Gehrke
Today, AT&T announced that new data plans will soon take effect. In a positive change for many smartphone customers who want the convenience of a data-enabled device but simply don’t use enough data to justify paying $30 per month, an option will now be available to pay $15 per month, in return for 200MB of data.
Unfortunately, the changes aren’t necessarily good news for heavy data users. Specifically, Apple iPhone and iPad customers who use more than 200MB per month will have the option to pay $25 per month. Unlike the current $30 plan, though, the data consumption will not be unlimited. Customers who choose this option will have their allotted bandwidth cut off at 2GB. As usual, the devil is in the details.
What are the new plans?
Here’s how the changes shape up. The following information regarding the new data plans is extracted from the official AT&T press release, published this morning:
“DataPlus: Provides 200 megabytes (MB) of data – for example, enough to send/receive 1,000 emails (no attachments), plus send/receive 150 emails with attachments, plus view 400 Web pages, plus post 50 photos on social media sites, plus watch 20 minutes of streaming video – for just $15 per month.** This plan, which can save customers up to 50 percent off their wireless data charges, is designed for people who primarily like to surf the web, send email and use social networking apps. If customers exceed 200 MB in a monthly billing cycle, they will receive an additional 200 MB of data usage for $15 for use in the cycle. Currently, 65 percent of AT&T smartphone customers use less than 200 MB of data per month on average.”
“DataPro: Provides 2 gigabytes (GB) of data – for example, enough to send/receive 10,000 emails (no attachments), plus send/receive 1,500 emails with attachments, plus view 4,000 Web pages, plus post 500 photos to social media sites, plus watch 200 minutes of streaming video – for $25 per month.** Should a customer exceed 2 GB during a billing cycle, they will receive an additional 1 GB of data for $10 for use in the cycle. Currently, 98 percent of AT&T smartphone customers use less than 2 GB of data a month on average.”
“Tethering. Smartphone customers – including iPhone customers – who choose the DataPro plan have the option to add tethering for an additional $20 per month. Tethering lets customers use their smartphones as a modem to provide a broadband connection for laptop computers, netbooks or other computing devices. Tethering for iPhones will be available when Apple releases iPhone OS 4 this summer.
With the new wireless data plans, pricing for a smartphone voice and data bundle now starts at just $54.99 per month for an individual plan, or $24.99 per month for an additional line on a FamilyTalk plan, $15 per month less than the price of the previous entry level bundle.”
How are iPad 3G customers affected?
For existing iPad 3G customers who already pay $29.99 for unlimited data, the service will continue to be the same price, under the same terms. The question that comes to mind, though, is what happens if an iPad 3G customer doesn’t renew their monthly contract automatically and passes the current month. When they go back to renew the contract, will AT&T treat it as a new service and offer only the limited data options?
AT&T’s changes also have the potential to negatively affect Apple’s sales of the iPad 3G. While many customers might have planned to purchase the 3G model, based on the potential for portability and continuous connectivity, will they now opt for the Wi-Fi model, to avoid costly overages?
The company’s press release also specifically mentions how the data plan changes for the iPad 3G will work, in the press release:
“For new iPad customers, the $25 per month 2 GB plan will replace the existing $29.99 unlimited plan. iPad customers will continue to pre-pay for their wireless data plan and no contract is required. Existing iPad customers who have the $29.99 per month unlimited plan can keep that plan or switch to the new $25 per month plan with 2 GB of data.”
As mentioned previously, the $4.99 price reduction in the high-end iPad plan could represent a savings for customers who consume less than 2GB of data per month. Let’s face it, though, many iPad owners are geeks, who consume a lot of bandwidth. They stream movies and television shows from Netflix and other streaming media providers, post hundreds of social media updates per day, play app-based games with others, and generally consume bandwidth at the same rate that a humpback whale consumes plankton, krill, and small fish (4,400+ per day, in case you were wondering). For these voracious, data consumers, surpassing their allotted 2GB of data will cost another $10. And that’s just for the first 1GB over the initial allotment.
Are the changes just one more sign of what’s to come?
One has to admit that timing of the AT&T announcement appears to be more than coincidental. Look at the effective date of the changes. AT&T states the new plans will be available beginning on June 7, 2010. If that date sounds familiar, it’s because it is also the opening day of the Apple WWDC and, more importantly, the keynote address by CEO Steve Jobs. Stating that tethering will also be available, for an additional price, when iPhone OS 4.0 is released this summer, also seems to obviously allude of what is to come. Overall, it would seem that everything is falling into place nicely for the debut of the iPhone 4G (or HD). As usual, nothing is certain, but it’s hard to ignore the signs.
Another potential issue that arises pertains to existing iPhone customers who currently do not have a contract but have a calling/data plan with AT&T. If they’re eligible to upgrade their 3G/3GS device to the iPhone 4G will they be allowed to keep their existing $30, unlimited data plan? The AT&T press release only states that existing customers can keep their existing plans. As of now, AT&T has assured customers they will be able to maintain their current unlimited data plan, even when upgrading to the iPhone 4G. The only instance in which they would be required to switch to the new, limited plans is if they wanted to add the new tethering feature.
What are AT&T customers saying?
Social networking sites, forums, and comments on tech news posts are already saturated with complaints regarding the changes. While AT&T’s announcement affects all data plan customers, the iPhone and iPad customers are the obvious targets in what can only be called an initiative to reduce bandwidth consumption on the wireless carrier’s network. Based on the myriad of iPhone/iPad apps dedicated to streaming media, it is safe to say that there are very few (if any) other devices (read: Non-Apple ones) that are likely to download in excess of 2GB of data. Is there anything that consumer can really do? In all actuality the answer is no, but that doesn’t mean they’ll remain quiet about it.
Related posts:
- AT&T officially announces iPad 3G data prices on the eve of another Applepalooza
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- iPhone 4G roundup: The week in Apple rumors and leaks
- Global iPad sales soar past two million, Can Apple keep the buzz alive?
- WWDC Keynote: Netflix coming to iPhone this summer…for free!
I was fine with all these changes until I realized I had to pay $20 to enable tethering, while still having to use the limited data plan.
Dudes… charge me $20 to use my unlimited plan on tethering, but don’t charge me by the gigabyte and then on top of that charge me $20 extra just so that I can use those bytes on another device. It costs nothing extra! Now I’m just paying $20 just so that I can run up my cap faster.
Tethering should be free for limited data plans.
Yes, it does seem a bit ridiculous. It would seem that many users will still rely on the jailbreak in iPhone OS 4.0, simply to have the MyWi app and bypass AT&T, altogether. It’s unfortunate. If they really wanted to remain competitive and satisfy customers, they would definitely look at it from your perspective.
First, thank you for the information. I will be jail breaking my iphone tonight and using MyWi from now on. I think ATT is being too greedy. I also pray that apple will wisen up an dreach a deal with another provider. As soon as they do I will definately leave ATT all together.
I still Regret the day I left Verizon for ATT, about 6 years ago. I started on the “Unlimited” Plan. I have an I-Phone and use an Air Card for my desktop and Notebook. They are telling me, that I can keep the Unlimited Plan for another Month. I do not like the “Capping” of the Band Width, as I do download a lot of Documentary Video. Two Gigs is a Joke. I will be looking to Dump ATT, as soon as I can find another affordable Wireless Provider with no Download Limitations.