AT&T prices iPhone 3G data plan at $30, nixes rev share deal

Posted:
in iPhone edited January 2014
AT&T confirmed in a press release Monday that it will remain the exclusive U.S. provider for Apple's new iPhone 3G, adding that unlimited data plans for the new touch-screen handset will fetch $30, an increase of $10 from the plan offered alongside the original iPhone.



The No. 1 US wireless carrier, which will begin selling the new iPhone alongside Apple in more than 2,200 company-owned retail stores and kiosks on July 11, added that unlimited 3G data plans for business users will be available for $45 a month.



Data plans must be purchased in addition to standard calling plans, which will begin at $40 for both home and business users and include at least 450 minutes of calling time, 5,000 evening and weekend minutes, 200 SMS text messages, and Visual Voicemail.



AT&T also announced its has entered into a new agreement with Apple that eliminates the revenue-sharing model under which AT&T shared a portion of monthly service revenue with Apple.



"Under the revised agreement, which is consistent with traditional equipment manufacturer-carrier arrangements, there is no revenue sharing and both
iPhone 3G models will be offered at attractive prices to broaden the market potential and accelerate subscriber volumes," the company said.



"The phones will be offered with a two-year contract and attractive data plans that are similar to those offered for other smartphones and PDAs. AT&T anticipates that these offers will drive increased sales volumes and revenues among high-quality, data-centric customers."



In the near term, AT&T anticipates that the new agreement will likely result in some pressure on its margins and earnings, reflecting the costs of subsidized device pricing, which, in turn, is expected to drive increased subscriber volumes. However, it also anticipates that its attractive iPhone 3G pricing offers will drive increased sales volumes and revenues among high-quality, data-centric customers.







In addition, AT&T said it's working closely with Apple to roll out several new and innovative applications that take advantage of the iPhone's advanced capabilities. For example, it's currently finalizing YELLOWPAGES.COM mobile for the iPhone, a GPS-enabled application that combines local search with social networking capabilities, giving users the ability to search for information, share reviews and plan activities with friends, neighbors and co-workers.



Furthermore, the wireless carrier said it is working to certify many of its existing mobile applications for businesses, created in conjunction with third-party developers, for use on the iPhone.
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Comments

  • Reply 1 of 103
    I really wish the iPhone was on Verizon but I cant wait for that so I may switch to AT&T.
  • Reply 2 of 103
    4metta4metta Posts: 365member
    I'll be getting one and unlocking it for TMobile. Those plan rates are horrendous. At least the iPhone price dropped!
  • Reply 3 of 103
    tantrumtantrum Posts: 41member
    Quote:
    Originally Posted by 4metta View Post


    I'll be getting one and unlocking it for TMobile. Those plan rates are horrendous. At least the iPhone price dropped!



    And you will use it on T-Mobile's 3G network I presume?
  • Reply 4 of 103
    studiomusicstudiomusic Posts: 614member
    Quote:
    Originally Posted by 4metta View Post


    I'll be getting one and unlocking it for TMobile. Those plan rates are horrendous. At least the iPhone price dropped!



    That price is the subsidized price.

    But, yah... They don't pay Apple anymore, so they raise their rates??
  • Reply 5 of 103
    smokeonitsmokeonit Posts: 268member
    Quote:
    Originally Posted by Tantrum View Post


    And you will use it on T-Mobile's 3G network I presume?



    LOL, good one...



    good luck with 3G + iphone + tmobile USA...



    tmobile germany is another thing... the iphone will perfectly work on all 3G networks in germany, 4 in total, or any other european country... tmobile germany will have stiff competition from grey importers and the iphone 3G....



    but att will have it pretty easy fending off competition in the US, since they're the only 3G UMTS network on the frequencies the iphone supports...
  • Reply 6 of 103
    4metta4metta Posts: 365member
    Quote:
    Originally Posted by Tantrum View Post


    And you will use it on T-Mobile's 3G network I presume?



    No I'll be using it to make unlimited WiFi calling on TMobile. Have it at work, home and campus.



    Just how fast AT&T's 3G network will run on it remains to be seen.
  • Reply 7 of 103
    4metta4metta Posts: 365member
    FYI... it also runs longer on 2G. Check the battery life stats.
  • Reply 8 of 103
    elixirelixir Posts: 782member
    i love how they say "attractive plans" those plans are garbage.



    who pays for crap like this?
  • Reply 9 of 103
    bdenton42bdenton42 Posts: 11member
    Quote:
    Originally Posted by 4metta View Post


    No I'll be using it to make unlimited WiFi calling on TMobile. Have it at work, home and campus.



    Just how fast AT&T's 3G network will run on it remains to be seen.



    So you'll be paying for 2 subscriptions then?
  • Reply 10 of 103
    smokeonitsmokeonit Posts: 268member
    Quote:
    Originally Posted by 4metta View Post


    FYI... it also runs longer on 2G. Check the battery life stats.



    iphone 3G:

    5h on 3G

    10h on 2G



    iphone 2G:

    8h on 2G



    i wonder if the settings on the iphone 3G allow to deselect 3G to take advantage of better 2G battery runtimes??? i would love that feature if i know i will need my iphone 1-2 days without being able to recharge....!!!
  • Reply 11 of 103
    SpamSandwichSpamSandwich Posts: 31,417member
    Now the only roadblock to widespread iPhone adoption is at&t.



    Who cares about inside information about Apple product announcements... I want to know when Apple and at&t are going to part ways!



    I wonder how the lawsuit against the phone companies is progressing (regarding unlocking phones)...
  • Reply 12 of 103
    skottichanskottichan Posts: 193member
    Quote:
    Originally Posted by smokeonit View Post


    iphone 3G:

    5h on 3G

    10h on 2G



    iphone 2G:

    8h on 2G



    i wonder if the settings on the iphone 3G allow to deselect 3G to take advantage of better 2G battery runtimes??? i would love that feature if i know i will need my iphone 1-2 days without being able to recharge....!!!



    Yup, you'll be able to switch from 3G to EDGE in the Options menu.
  • Reply 13 of 103
    rbonnerrbonner Posts: 635member
    Very interesting, they are charging us $10 bucks more per month for the data and developing a yellow pages application so they can charge more for the advertising. This feels more and more like a traditional copper line phone company.



    What would really be a good value is a family data plan so when we upgrade we can pass the iPhones down to the kids.



    Does anyone know if my son buys a data plan on my old 2G phone, does the old data plan rates stick?
  • Reply 14 of 103
    mstonemstone Posts: 11,510member
    I wonder how the revenue sharing works out for Apple with people who upgrade from the original to the new 2 year contract.
  • Reply 15 of 103
    tbagginstbaggins Posts: 2,306member
    Wow... we're going to be hearing nothing but complaints about the data plan price increase.



    Hope it doesn't overshadow the new, improved hardware and the big iPhone price drop.







    .
  • Reply 16 of 103
    tbagginstbaggins Posts: 2,306member
    Quote:
    Originally Posted by SpamSandwich View Post


    Now the only [major] roadblock to widespread iPhone adoption is at&t.



    Yup. But it's a big one.







    .
  • Reply 17 of 103
    4metta4metta Posts: 365member
    Quote:
    Originally Posted by bdenton42 View Post


    So you'll be paying for 2 subscriptions then?



    I don't pay it now. Why would that change?
  • Reply 18 of 103
    smokeonitsmokeonit Posts: 268member
    Quote:
    Originally Posted by 4metta View Post


    Just how fast AT&T's 3G network will run on it remains to be seen.



    i think i read that att said that upgraded umts/hsdpa cells will support 1.5Mbit down/600kbit upload... slightly faster than not upgraded cells.... those are real world figures...



    here in germany real world 7Mbit are not uncommon... the cells that have the latest hsdpa tech installed run that fast... of course the pings are not as fast as DSL/cable since the radio uplink/downlink is not as fast as copper/fiber optics....
  • Reply 19 of 103
    bdenton42bdenton42 Posts: 11member
    Quote:
    Originally Posted by 4metta View Post


    I don't pay it now. Why would that change?



    Doesn't subsidized mean 2 year contract?
  • Reply 20 of 103
    4metta4metta Posts: 365member
    Quote:
    Originally Posted by TBaggins View Post


    Wow... we're going to be hearing nothing but complaints about the data plan price increase.



    Hope it doesn't overshadow the new, improved hardware and the big iPhone price drop.







    .



    I was hoping Apple would open up the iPhone to more carriers this year. It may end up being a big mistake they didn't. Then again, we don't know the terms of the contract with AT&T. Maybe they just can't get out yet.
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