AT&T caps new iPhone, iPad data plans at 2GB, announces tethering
AT&T's transition away from unlimited data plans begins June 7, when iPhone data (with tethering) and iPad 3G plans will be capped at 2GB per month, but with slightly lower pricing.
AT&T announced this week that a new data plan for iPhone owners, dubbed "DataPro," will be offered starting June 7, providing 2GB of data for $25 per month. Tethering costs an additional $20 per month, and lets customers use their handset to share Internet connectivity with another device, such as a laptop. Tethering will be available this summer when iPhone OS 4 is released.
AT&T will also offer a less expensive data plan, called "DataPlus," which offers 200MB for $15 per month. The carrier noted in its press release that 65 percent of its smartphone customers use less than 200MB per month, while 98 percent use less than 2GB per month.
Customers who near their cap for the month will be sent a text message notifying them when they reach a certain usage level. For customers who exceed the cap, an extra 1GB in the DataPro plan costs $10, and an extra 200MB in the DataPlus plan runs $15.
Current AT&T customers are not required to switch to the new plans and sacrifice their unlimited data, but can do so without a contract extension.
AT&T also announced that it would discontinue the existing $29.99-per-month unlimited 3G data plans for the iPad for new customers. It will be replaced by a no-contract plan that runs $25 a month for 2GB of data. Customers who have the existing unlimited plan are not required to change.
Plans for voice and texting through AT&T will remain unchanged after June 7.
"AT&T helps mobilize everything on the Internet -- your favorite web sites, TV shows, music, games and social networks. Virtually everything previously done while sitting at a computer can now be done on the go," said Ralph de la Vega, president and CEO, AT&T Mobility and Consumer Markets. "To give more people the opportunity to experience these benefits, 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."
AT&T has long hinted that changes to its unlimited data plans were coming, as the company has faced network issues and bandwidth problems. The carrier has sought ways to encourage the heaviest bandwidth consumers to reduce or modify their usage of the AT&T network.
Last December, one AT&T executive said he believed it was inevitable that users who utilize more bandwidth than their share will have to pay more than the rest. At the time, the company said that 40 percent of the network capacity for AT&T is used by just 3 percent of smartphone users. Other reports have alleged that the average iPhone user consumes 10 times the bandwidth of a typical smartphone user.
On Tuesday, Apple co-founder Steve Jobs said that he felt AT&T was doing "pretty good" in improving its network, though he admitted they "could do better." Jobs revealed that Apple and AT&T executives meet once a quarter to discuss issues. He also noted that AT&T deals with "way more data traffic than anyone else."
AT&T announced this week that a new data plan for iPhone owners, dubbed "DataPro," will be offered starting June 7, providing 2GB of data for $25 per month. Tethering costs an additional $20 per month, and lets customers use their handset to share Internet connectivity with another device, such as a laptop. Tethering will be available this summer when iPhone OS 4 is released.
AT&T will also offer a less expensive data plan, called "DataPlus," which offers 200MB for $15 per month. The carrier noted in its press release that 65 percent of its smartphone customers use less than 200MB per month, while 98 percent use less than 2GB per month.
Customers who near their cap for the month will be sent a text message notifying them when they reach a certain usage level. For customers who exceed the cap, an extra 1GB in the DataPro plan costs $10, and an extra 200MB in the DataPlus plan runs $15.
Current AT&T customers are not required to switch to the new plans and sacrifice their unlimited data, but can do so without a contract extension.
AT&T also announced that it would discontinue the existing $29.99-per-month unlimited 3G data plans for the iPad for new customers. It will be replaced by a no-contract plan that runs $25 a month for 2GB of data. Customers who have the existing unlimited plan are not required to change.
Plans for voice and texting through AT&T will remain unchanged after June 7.
"AT&T helps mobilize everything on the Internet -- your favorite web sites, TV shows, music, games and social networks. Virtually everything previously done while sitting at a computer can now be done on the go," said Ralph de la Vega, president and CEO, AT&T Mobility and Consumer Markets. "To give more people the opportunity to experience these benefits, 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."
AT&T has long hinted that changes to its unlimited data plans were coming, as the company has faced network issues and bandwidth problems. The carrier has sought ways to encourage the heaviest bandwidth consumers to reduce or modify their usage of the AT&T network.
Last December, one AT&T executive said he believed it was inevitable that users who utilize more bandwidth than their share will have to pay more than the rest. At the time, the company said that 40 percent of the network capacity for AT&T is used by just 3 percent of smartphone users. Other reports have alleged that the average iPhone user consumes 10 times the bandwidth of a typical smartphone user.
On Tuesday, Apple co-founder Steve Jobs said that he felt AT&T was doing "pretty good" in improving its network, though he admitted they "could do better." Jobs revealed that Apple and AT&T executives meet once a quarter to discuss issues. He also noted that AT&T deals with "way more data traffic than anyone else."
Comments
Finance.yahoo.com
The sole U.S. carrier of the iPhone is introducing two new data plans, starting June 7, with limits on data consumption. They'll replace the $30 per month plan with unlimited usage that it has required for all smart phones, including the iPhone...........
......One new plan will cost $25 per month and offer 2 gigabytes of data per month, which AT&T says will be enough for 98 percent of its smart phone customers. Additional gigabytes will cost $10 each.
A second plan will cost $15 per month for 200 megabytes of data, which AT&T says is enough for 65 percent of its smart phone customers. If they go over, they'll pay another $15 for 200 megabytes.
All I've got to say is Tenobell, I was right. Us geeks know that AT&T's former plan, even when called unlimited had a small print limit of 5 gigs. Since you cannot buy one gig alone on the new plan that means AT&T has raised the cost of obtaining 5 gigs from $30 to $75. Do we even want to go into what it would cost via the 200 meg/$15 plan?
You can bet your butt they didn't need to wait until LTE to do it either.
That Droid Incredible, if they can keep them in stock, or Droid ___________ du jour is looking pretty darn good right now. I received an email that Audible.com client has just gone beta on Android.
Maybe I'll just restart my LG Dare with Page Plus and stop sweating all these ever increasing nickles and dimes. It's just getting ridiculous how much money they want. Much like cable/sat television, it is too quickly becoming an all or nothing proposition with the all in approach costing triple what it did before.
I hate my carrier (Rogers/Fido) but damn I am glad for them right now. I pay $30 for 6GB and no extra for tethering.
Hell, I could probably even drop down to the 2GB plan myself and save another $5 a month. I think the most I ever used in a month was 1GB, and that was because I was tethering in Las Vegas because the hotel Wi-Fi during CES 2010 was absolutely horrible.
I know that a lot of people will bitch about this, but it works for me
This is the first time I've actually LIKED what Rogers has offered in comparison to another carrier.
So let's see all the ATT apologetics who complained about Verizon's 5 GB cap chime in. 2 GB is crap, especially if you are downloading apps or media. And everyone who said the iPad data plan pricing was evidence of Apple sticking with ATT as the sole provider (due to it's low pricing), how long did that last?
Now more than ever we need another carrier in the US to get the iPhone and iPad to provide some competition (and relieve the strain on ATTs network).
"For customers who exceed the cap, an extra 1GB in the DataPro plan costs $10, and an extra 200MB in the DataPlus plan runs $15."
Are you freakin' kidding me! That's borderline blackmail to get you to go for the more expensive plan. Verizon's $60/month mifi card is looking pretty attractive right now. Too bad you can't get an iPhone without a data plan. Maybe pair the mifi with a touch and dump ATT altogether.
This is analogous to the water company saying that each household could use 5,000 gallons a month, but you have to pay extra if you want to use that water to wash dishes with.
At&t is charging a surcharge for something that not only lacks a nexus to their cost basis, but is also, quite frankly, squarely within the realm of HOW customers use the service, and not WHAT service at&t is providing to them.
I love Apple, but when you lie down with dogs, you wake up with fleas, and I think at&t is a pretty sorry bed-fellow for the iPhone.
AT&T nearly doubles the cost of 5 GB of data for users, from $30 per month to $55 per month
If there is a hard-and-fast cap on how much data that a client can use, then why would they care what device uses it? This is an absurd idea that shows how disinterested at&t is in the happiness of it's clients.
This is analogous to the water company saying that each household could use 5,000 gallons a month, but you have to pay extra if you want to use that water to wash dishes with.
At&t is charging a surcharge for something that not only lacks a nexus to their cost basis, but is also, quite frankly, squarely within the realm of HOW customers use the service, and not WHAT service at&t is providing to them.
I love Apple, but when you lie down with dogs, you wake up with fleas, and I think at&t is a pretty sorry bed-fellow for the iPhone.
It's a lot like how after I've gone through a two year contract with my subsidized phone, the monthly costs of the contract don't decrease. As much as I am loathe to see it, bring on the FCC and some congressional oversight. Consumers are getting raped AND they have limited choice.
Those sound like incredibly shitty plans.
not if their stats are correct.
So, not only will there be a hard cap, but on top of the cap you will have to pay significantly more for tethering?
this shouldn't surprise anyone.
consider that their notebook plans are what $60 a month
clearly they are trying to encourage wifi use with 3g as a backup rather than the main connection.
or switch it to 2GB on demand
be careful that you understand what is happening here. Your comment sounds like you think it's a pay as you go type plan where you pay for data 2GB at a time. It's not. on the phone it is 2 GB per month every month on contract, if you go over you can add data 1gb at a time until the month runs out. but if you don't use it all, sucks for you. there's no data carryover. same on the ipad but without the contract part.
so I would be sure that you don't go over 2gb (maybe that month you guys were on vacation but otherwise not) before you drop down.
And for those of us that were lucky enough and got those special intro deals, e.g., Rogers 6GB data plan, another year and we are in the same boat.
http://wiki.maemo.org/Data_plans
But with the new iPhone just around the corner, several readers wondered if that guarantee would hold even if they chose to upgrade to the new iPhone. It seems like it will.
AT&T has replied on their Facebook page indicating that current customers may keep the $30/month unlimited plan even when they upgrade to a new iPhone:
The good news for current customers who love their unlimited plan is this: they are not required to switch, even when it's time to upgrade to a new phone. So you are welcome to keep your unlimited plan
Of course, by staying on the unlimited plan, customers won't be able to add on tethering service. See our previous coverage of the new pricing plans for further details.
Apple is building a gigantic "cloud farm" in NC, the purpose for which is to promote the idea of always-connected cloud-based computing. Meanwhile, the exclusive provider of 3G connectivity for their mobile devises is making byte-counters out of all their users. At some point, this is going to become a genuine conflict. I suspect that when it does that we will finally have a Verizon iPhone.
Great observation.
I think AT&T is making a grab for as much extra cash as they can get away with before a mass exodus once another/any carrier comes into play.
The name of this article should really be changed to:
AT&T nearly doubles the cost of 5 GB of data for users, from $30 per month to $55 per month
The name of this article should really be changed to:
ATT reduces data plan charges for nearly 97% of it's customer base; the rest of you pay what you should be paying. Tens of thousands of ATT wifi hotspots out there; discover them and use them.