Analyst believes AT&T iPad data deal came with iPhone extension

Posted:
in iPhone edited January 2014
One analyst has predicted, not declared, that AT&T likely agreed to offer no-contract iPad data plans in exchange for Apple extending its exclusive access to the iPhone in the U.S.



Comments from Brian Marshall with Broadpoint AmTech generated interest on the Web Thursday, as the analyst suggested a Verizon-compatible iPhone wouldn't be released until 2011. Marshall's speculative comments came out of a report from Computerworld, in which he suggested AT&T and Apple may have extended their exclusive agreement by six months. Headlines elsewhere incorrectly declared that Marshall was offering inside information of a formal deal between the two companies.



"[It was] speculation only," Marshall said in an e-mail to AppleInsider. "I think [AT&T] had to get something in return (i.e., 6 month extension on iPhone exclusivity)."



Marshall said he believes it's likely AT&T had to get something in return for offering "such attractive 3G data pricing." AT&T's $30-per-month unlimited data-only plan is half the price of its competitors.



Marshall told Computerworld, and said he believes AT&T was able to negotiate a six-month extension for the iPhone.



It's a change of tune for Marshall, who had previously predicted that Apple would turn to Verizon this year. The Broadpoint AmTech analyst also said before the iPad was announced that it was "a certainty" that Apple's tablet would be available through Verizon.



Marshall said he was "floored" when the iPad was announced as AT&T 3G only in the U.S. He said AT&T's competitively priced plans are likely what cut Verizon out of the picture.



Apple's iPad with 3G connectivity carries a $130 premium over the Wi-Fi-only model. Users can access unlimited data on the device through AT&T for $30 a month, or use up to 250MB for $15 per month. Both plans do not come with a contract and can be canceled at any time.
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Comments

  • Reply 1 of 27
    anantksundaramanantksundaram Posts: 19,062member
    Was there any news here, or was it so subtle (or perhaps I am so dense) that I missed it altogether!?
  • Reply 2 of 27
    lilgto64lilgto64 Posts: 1,147member
    Never mind competitors - $30 a month is half of what AT&T is charging me for my unlimited data PC card - which I only need because they do not offer tethering on the iPhone and the tethering I had on my old Treo 650 under Verizon was only good enough for emergencies.



    Speculation is one thing - speculation by someone who actually knows what they are talking about can be more useful.



    I would speculate that the low rate is partly due to an expectation that the majority of users will not be using it most of the time. I only use my 3G card when I travel and the local Wi-Fi isn't free or fast enough. Or maybe they figured that most folks would either be AT&T customers already or that such a low price would not prohibit someone who was not ready to switch to AT&T for phone service to go ahead and get AT&T for 3G data service.



    If I were an AT&T competitor I would probably either want to make darn sure my network was as bullet proof as possible before going after the iDevice market to avoid the backlash that AT&T has suffered or wait until the 4G/LTE converged standard is pervasive enough to make a single devise able to be sold in all markets without needing multiple antennas etc.



    But then I am not privy to all the parameters that go into corporate contracts of that level and what the various technical and market arms of each organization is up to in those arenas.
  • Reply 3 of 27
    tazznbtazznb Posts: 54member
    Please move on Apple. Make AT&T part of a painful past. I'm sick and tired of all the dropped calls.



    THINK OF ALL THE FUTURE SUBSCRIBERS WAITING IN THE WINGS FOR AN IPHONE WITH A DECENT CONNECTION. MANY PEOPLE WON'T BUY AN IPHONE BECAUSE IT'S TIED TO AT&T.



    I wanna buy an iPhone already......! And not for AT&T!
  • Reply 4 of 27
    therobintherobin Posts: 11member
    My wish was that Apple/AT&T would have a subsidized option for the 3G iPad. This would allow the price of the 3G hardware to be several hundred dollars less that it currently is (say $$399 for the 16GB version). Because I'm already an AT&T customer, I wouldn't really mind signing up for a 2 year contract.
  • Reply 5 of 27
    jerseymacjerseymac Posts: 408member
    Quote:
    Originally Posted by AppleInsider View Post






    Marshall said he was "floored" when the iPad was announced as AT&T 3G only in the U.S.



    He's not the only one. I really wanted to get one, but after two years of AT&T service, I just can't. With great regret, I intend to abandon my iPhone as soon as my contract is up next month. My iPhone is a part of me and I don't know how I lived without it, but I can't function with AT&T's service. I just can't complete a phone call in my area.



    Having exclusivity in the phone space may be justifiable because of all this CMDA GSM business. As for the iPad, for Apple to make another product that forces customers to do business with this one telecom is just wrong IMHO. What's next? A new MacBook with a built in antenna that only works with AT&T?



    If this isn't what antitrust laws were created for, I don't know what is.
  • Reply 6 of 27
    ihxoihxo Posts: 562member
    did the analysts predict the dow would sell off today
  • Reply 7 of 27
    foo2foo2 Posts: 1,077member
    Don't forget a possible further delay in allowing iPhones to tether on AT&T, thank you very much.
  • Reply 8 of 27
    foo2foo2 Posts: 1,077member
    Quote:
    Originally Posted by TheRobin View Post


    My wish was that Apple/AT&T would have a subsidized option for the 3G iPad. This would allow the price of the 3G hardware to be several hundred dollars less that it currently is (say $$399 for the 16GB version). Because I'm already an AT&T customer, I wouldn't really mind signing up for a 2 year contract.



    "Subsidized" often means "considerably less than the cost to manufacture". For the iPad 3G 16GB, which is estimated to cost about $300 to manufacture, the subsidized price might reasonably be expected to be $99.
  • Reply 9 of 27
    mdriftmeyermdriftmeyer Posts: 7,232member
    Quote:
    Originally Posted by Tazznb View Post


    Please move on Apple. Make AT&T part of a painful past. I'm sick and tired of all the dropped calls.



    THINK OF ALL THE FUTURE SUBSCRIBERS WAITING IN THE WINGS FOR AN IPHONE WITH A DECENT CONNECTION. MANY PEOPLE WON'T BUY AN IPHONE BECAUSE IT'S TIED TO AT&T.



    I wanna buy an iPhone already......! And not for AT&T!



    Get over yourself. iPhone Sales continue to beat even the most bullish estimates for AT&T.



    In six months we're nearing 2011 and the LTE transition. AT&T will continue to expand it's 3G signals as the fall back while it rolls LTE out.
  • Reply 10 of 27
    dannshdannsh Posts: 24member
    Quote:
    Originally Posted by Tazznb View Post


    Please move on Apple. Make AT&T part of a painful past. I'm sick and tired of all the dropped calls.



    THINK OF ALL THE FUTURE SUBSCRIBERS WAITING IN THE WINGS FOR AN IPHONE WITH A DECENT CONNECTION. MANY PEOPLE WON'T BUY AN IPHONE BECAUSE IT'S TIED TO AT&T.



    I wanna buy an iPhone already......! And not for AT&T!



    Amen!
  • Reply 11 of 27
    dannshdannsh Posts: 24member
    Quote:
    Originally Posted by mdriftmeyer View Post


    Get over yourself. iPhone Sales continue to beat even the most bullish estimates for AT&T.



    In six months we're nearing 2011 and the LTE transition. AT&T will continue to expand it's 3G signals as the fall back while it rolls LTE out.



    I sorry but I am one of those 3% who are not covered by AT&T. Verizon has better coverage.
  • Reply 12 of 27
    [QUOTE=mdriftmeyer;1627610]Get over yourself. iPhone Sales continue to beat even the most bullish estimates for AT&T.



    Imagine what sales would have looked like on a competent carrier
  • Reply 13 of 27
    cxc273cxc273 Posts: 46member
    I think I'm going to write an update about this as a classic children's story and call it "The Boy Who Cried 'Verizon iPhone!'"



    Come on, Apple, how many first-born children, virgin sacrifices, rain dances, Hail Marys, Mayan calendars, and Nostradamus predictions is it going to take to put the iPhone on Verizon's network?



    Let's do it already so the forums can start speculating on something else!
  • Reply 14 of 27
    wigginwiggin Posts: 2,265member
    Quote:
    Originally Posted by AppleInsider View Post


    AT&T's $30-per-month unlimited data-only plan is half the price of its competitors.



    Except it isn't. It's two completely different types of plans. One plan (A) is for a single device (and a limited device, at that) for $30/month and the other plan (B) is for any number of fully capable devices (ie computers), possibilities for teethering, etc for $60/month. ATT's plan B is the exact same price as Verizon's plan B.



    Quote:
    Originally Posted by Foo2 View Post


    Don't forget a possible further delay in allowing iPhones to tether on AT&T, thank you very much.



    And when ATT does allow tethering, how much you want to bet it will cost an additional $30/month on top of what you are already paying. And guess what that gets you? Yup, you are right back to plan B again.
  • Reply 15 of 27
    formerarsgmformerarsgm Posts: 191member
    Quote:
    Originally Posted by Jerseymac View Post


    If this isn't what antitrust laws were created for, I don't know what is.



    Please understand anti-trust law before making such a statement. Many products and services are provided by an exclusive provider. This, in and of itself, does not constitute an anti-trust violation.
  • Reply 16 of 27
    jerseymacjerseymac Posts: 408member
    Quote:
    Originally Posted by FormerARSgm View Post


    Please understand anti-trust law before making such a statement. Many products and services are provided by an exclusive provider. This, in and of itself, does not constitute an anti-trust violation.



    Well, maybe it should.
  • Reply 17 of 27
    tazznbtazznb Posts: 54member
    Quote:
    Originally Posted by mdriftmeyer View Post


    Get over yourself. iPhone Sales continue to beat even the most bullish estimates for AT&T.



    In six months we're nearing 2011 and the LTE transition. AT&T will continue to expand it's 3G signals as the fall back while it rolls LTE out.



    Even the strongest swimmer will go down in time if they remain tethered to an anchor (which is all AT&T is) Apple is at 4 fingers. When the iphone's excitement wears off, and they come to realize the lousy service they'll drop them like my brother is going to, and he is an Apple support tech. AT&T is the ONLY REASON I refuse to buy an iPhone.



    BTW I know I can't be the only one out here with this opinion, Mr. AT&T employee.
  • Reply 18 of 27
    tcphototcphoto Posts: 65member
    To paraphrase Mel Gibson in Brave Heart, I want AT&T's CEO to present himself to iPhone users and apologize to everyone for his companies poor performance and give back his multi million dollar bonuses because he certainly did not earn it. AT&T pocketed a lot of money and failed to provide adequate basic service let alone customer support. Funny how Applerates amount the top and AT&T is consistanly is the worst.
  • Reply 19 of 27
    jb510jb510 Posts: 124member
    Quote:
    Originally Posted by TheRobin View Post


    My wish was that Apple/AT&T would have a subsidized option for the 3G iPad. This would allow the price of the 3G hardware to be several hundred dollars less that it currently is (say $$399 for the 16GB version). Because I'm already an AT&T customer, I wouldn't really mind signing up for a 2 year contract.



    What?!? Why would you want that. AT&T makes a killing on "subsidized" plans because they charge double the going rate. An iPad data only plan on subsidized contract would be $60/month like the 3G modems. I'm sure they'd be at that monthly rate happy to knock $300 off the price for you up front... Is that really what you wanted? Hint get out your calculator before you decide.



    The truth is we're all getting screwed on the iPhone contracts. WHY do people not see this? Over the 2 year contract on an iPhone you pay AT&T at least $2000 depending on the plan. I do it, but only because I have no choice in the US. I'd far rather pay the $800 up front for my iPhone and be on a prepaid plan... only AT&T won't even provide service an unlocked iPhone without a contract



    Regardless what I really wanted to say is that I'm holding out hope that these prepaid data plans are available on the iPhone 4G and I can finally go back to PrePaid minutes as well.
  • Reply 20 of 27
    jb510jb510 Posts: 124member
    Quote:
    Originally Posted by tcphoto View Post


    To paraphrase Mel Gibson in Brave Heart, I want AT&T's CEO to present himself to iPhone users and apologize to everyone for his companies poor performance and give back his multi million dollar bonuses because he certainly did not earn it. AT&T pocketed a lot of money and failed to provide adequate basic service let alone customer support. Funny how Applerates amount the top and AT&T is consistanly is the worst.



    You've got the order wrong:

    "AT&T pocketed a lot of money"



    "[CEO received] his multi million dollar bonuses"



    That's how it works... CEO's earn bonuses for increasing shareholder value, no for "broke even but made a lot of customers really happy". I know it's hard to believe but AT&T does have a lots of satisfied and silent customers, I'm not one of them (satisfied or silent), but they do exist.
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