Change in ATT Data plans

[tail24]

Here is the article that was posted this morning on Yahoo.com Financial section. It initially talks just about smartphones/iphones then in the middle talks about changes in ipad. In short all new ATT smartphone and ipad costoumers will have no unlimited choice for data. They will be able to have 2GB of data for $25 with an extra $10 per GB used after that. They will also be able to get lesser plans for people who dont consume as much data starting at $15 a month for smartphone users. This also holds true for iPad users that either havent signed up for 3G yet or are new ipad 3G users. Already enrolled costumers will have their choice of which plan to go to they will not be forced to change their plans. This will be affective as of June 7 2010.



NEW YORK – In time for the widely expected launch of a new iPhone model, carrier AT&T Inc. is pulling in the reins on [COLOR=#366388 ! important][COLOR=#366388 ! important]data [COLOR=#366388 ! important]usage[/COLOR][/COLOR][/COLOR] by its customers with smart phones and iPads.
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.
With the change AT&T is adopting a carrot-and-stick approach to assuage the data congestion on its network, which has been a source of complaints, especially in cities such as New York and San Francisco that are thick with [COLOR=#366388 ! important][COLOR=#366388 ! important]iPhone [COLOR=#366388 ! important]users[/COLOR][/COLOR][/COLOR]. The new plans will take effect just as Apple is expected to unveil the next generation of its iPhone at an event Monday in San Francisco.
Subscribers who use little data or learn to limit their consumption will pay slightly less every month than they do now, while heavy users will be dinged with extra consumption fees.
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.
With that plan and voice service, a smart phone could cost as little as $55 per month before taxes and add-on fees, down from $70 per month. [COLOR=#366388 ! important][COLOR=#366388 ! important]Ralph [COLOR=#366388 ! important]de [/COLOR][COLOR=#366388 ! important]la [/COLOR][COLOR=#366388 ! important]Vega[/COLOR][/COLOR][/COLOR], the head of AT&T's consumer business, said that means smart phones can become accessible to more people.
"Customers are getting a good deal, and if they can understand their usage, they can save some money," [COLOR=#366388 ! important][COLOR=#366388 ! important]de [COLOR=#366388 ! important]la [/COLOR][COLOR=#366388 ! important]Vega[/COLOR][/COLOR][/COLOR] said in an interview.
Current AT&T subscribers will be allowed to keep the unlimited plan, even if they renew their contracts. But all new subscribers will have to choose one of the two new plans.
Figuring out which one to choose may not be easy, given that many people have only a hazy notion of the size of a gigabyte and how many they use now. A gigabyte is enough for hundreds of e-mails and Web pages, but it's quickly eaten up by Internet video and videoconferencing.
De la Vega said AT&T is doing its part to educate consumers, by letting them track their usage online. The iPhone contains a data usage tracking tool. The carrier will also text-message subscribers to let them know they're getting close their limits.
Data usage over Wi-Fi, including AT&T's public [COLOR=#366388 ! important][COLOR=#366388 ! important]Wi-Fi [COLOR=#366388 ! important]hot [/COLOR][COLOR=#366388 ! important]spots[/COLOR][/COLOR][/COLOR], will not count toward the limits.
The new $25-per-month plan will replace the current $30 plan with unlimited usage that is available for the iPad, the tablet computer Apple Inc. released just a few months ago, though iPad owners can keep the [COLOR=#366388 ! important][COLOR=#366388 ! important]old [COLOR=#366388 ! important]plan[/COLOR][/COLOR][/COLOR] as long as they keep paying $30 per month, AT&T said.
Paradoxically, the data caps arrive at time when carriers have started to lift the limits on other forms of [COLOR=#366388 ! important][COLOR=#366388 ! important]wireless [COLOR=#366388 ! important]use[/COLOR][/COLOR][/COLOR], by selling plans with unlimited calling and unlimited text messaging. That's not a big gamble, because not many people have the time to talk phone for eight hours a day or spend every waking minute sending text messages. But smart phones can draw a lot of data, depending one where and how they're used. With the new plans, de la Vega hopes to see high-consumption applications like Internet video being steered toward hot spots, where they don't clog up AT&T's [COLOR=#366388 ! important][COLOR=#366388 ! important]cellular [COLOR=#366388 ! important]network[/COLOR][/COLOR][/COLOR].
Consumers have rebelled against the idea of data usage caps on home broadband, at least when the limits are set low enough to make online video consumption expensive. Time Warner Cable Inc. was forced to back away from trials of data caps last year after consumer protests and threats of legislative action.
In the wireless world, where data capacity is more constrained, usage caps are more common. Most wireless carriers, for instance, limit data cards for laptops to 5 gigabytes per month.
But with intense competition for smart phone users, phone companies have been reluctant to impose similar limits on those devices, although Sprint Nextel Corp. reserves the right to slow down or disconnect users who exceed 5 gigabytes per month. It remains to be seen whether AT&T's rivals will join it in imposing caps or use their own "unlimited" plans as a marketing advantage.
___
Online:
AT&T's data calculator, for consumption estimates: http://www.att.com/standalone/data-calculator/index.html

 

[Itzxdjx]

Yeah opts only for "new iPad 3G owners" others can keep there unlimited if your on it already. AT&T didn't relize how much data an iPad actually uses so there just trying to cash in on over usage. 2gb is very easy to go over on an iPad. Good thing I can tether using my Nexus One and don't need a 3G model. iPhone should be able to tether this upcoming release, being announced in 5 days, but it will not be able to tether the iPad lol.

 

[CaptKirk]

Good 'Ole Fashion' Bait n Switch tactics at it's best....

 

[mitch1]

This might not be a bad thing. As long as I can keep my unlimited plan for my ipad. Since I now don't use my iphone except to text and making phone calls, now I can reduce my iphone data plan to $15.00

 

[Seadog]

I decided to go with unlimited usage while I looked at how much I actually used with my iPad. I find that I would probably stay within 500 mb usage, but the revised plan drops that to 200 mb. However, I think I can live with 2gb for less money. There are some who will hate the new limits, but most will be OK with it.

 

[tonypitt]

My iPad 3G is enroute to me as I write this, but I've had an iPhone with unlimited data for quite some time now. I'm guessing that I can keep the unlimited data for the iPhone, but can't get it for the iPad? That's really the opposite of what I'd want!

I'll look forward to reading what others think about this and what they experience.

 

[Bremen]

Won't effect me, but I still don't like it. I understand the bandwidth issues though.... no doubt the iPad sucks the megs a lot quicker than the average smartphone....

 

[gentlefury]

I hope apple calls them on that since it makes jobs look like a liar, since in Jan he announced unlimited iPad usage for a magical price...I thought bait and switch was illegal...

 

[tail24]

its only a bait and switch if they change the pricing mid cycle. They are changing their policies for new costumers not present ones. As long as you never cancel your month to month service you get to keep your unlimited.

 

[lp1968]

Yeah opts only for "new iPad 3G owners" others can keep there unlimited if your on it already. AT&T didn't relize how much data an iPad actually uses so there just trying to cash in on over usage. 2gb is very easy to go over on an iPad. Good thing I can tether using my Nexus One and don't need a 3G model. iPhone should be able to tether this upcoming release, being announced in 5 days, but it will not be able to tether the iPad lol.

Wait do you mean I won't be able to tether my iPhone to my iPad? Why would it matter?

 

[Seadog]

The details have not been announced but I suspect that the ipads will not be affected for awhile. At most, I see a cap on the definition of unlimited like they have on iPhones. The big concern right now is the millions of iPhones out there. They far outnumber the iPad usage.

 

[cherhall]

The changes are for iPad too, effective the 7th....but you can keep your unlimited on iPad or iPhone if you already have them.

 

[Greg G]

The other thing is that the iPad $15 plan was for 250mb but now they are announcing a $15 for 200mb plan. If this impacts iPad users then they are making it harder to stay within the $15 plan as well.

Also note that they have added a $20 option for tethering to the 2gb plan. That is ridiculous considering that the multiple devices will still share the same data plan limits. For $20, they should at least offer an additional 1gb of data... If I were an iPhone users (can't since I need to use Verizon) then I would be seriously considering jail breaking it to take advantage of the app someone wrote to do free tethering.

I would really like to hear Apple's thoughts on all this. They made such a big deal about the revolutionary pricing for iPad data and 1mo later AT&T is bailing. I suspect they had some kind of agreement that if iPad data usage was above a certain threshold they would be able to adjust their rates.

-Greg

 

[maryinredding]

The flexible data plan is why I bought the 3g pad. Now I will be limited to what I can do with it. I have a Sprint Palm Pre which I love, and they do not offer tethering to the phone at any cost. I know there are ways of hacking into your phones to do this, but I have heard of the problems people are having after hacking and that makes me keep my phone stock. How many hours could you connect to the internet for with the 2gig plan????

 

[lilman]

This does feel a bit like bait-and-switch since the iPad product page had the unlimited 3g pricing on it as a selling point, yet only a month later that unlimited plan will no longer be available. The lack of an unlimited data plan may have affected some peoples' decision to buy the 3g model.

I had never activated 3g before cause I haven't needed it, but now I just did. I'm hoping that when I cancel my unlimited plan after one month I will still be grandfathered in to be eligible for the unlimited plan in the future.