AT&T and Apple Tightening Policies to Reduce iPhone Unlocking

[MacRumors]

In the wake of Apple's iPhone 3G announcement and AT&T's press release detailing their new agreement with Apple, additional details are surfacing regarding the companies' attempts to reduce the number of customers unlocking their iPhones for use on other carriers.

Gizmodo spoke with AT&T's President of National Distribution Glenn Lurie, who revealed that all iPhone activations will take place in-store. This is in contrast to the current system in which customers may activate their iPhones from home using iTunes. Additionally, Reuters reports that AT&T has said that purchasers who do not activate their iPhones within 30 days will be subject to penalties. No details on these proposed penalties have been made public.

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[Lucas44]

hopefully this will help my current iphone keep some value so i can afford to buy the 3G phone!

[BG-Mac]

Originally Posted by Lucas44

hopefully this will help my current iphone keep some value so i can afford to buy the 3G phone!

That's what I'm hoping for..

[Spock]

I would almost pay the full price to have the new iPhone unlocked, I cant stand AT&T

[orijinal]

"Additionally, Reuters reports that AT&T has said that purchasers who do not activate their iPhones within 30 days will be subject to penalties. No details on these proposed penalties have been made public."

First it's reported that they must be activated in-store. If there are penalties for not activating within 30 days, this has to be assuming that the phone is purchased, and then activated at a later date (a.k.a. not activated right at purcase, in the store)... right? What's going on here, which is it???

[137489]

Originally Posted by orijinal

"Additionally, Reuters reports that AT&T has said that purchasers who do not activate their iPhones within 30 days will be subject to penalties. No details on these proposed penalties have been made public."

First it's reported that they must be activated in-store. If there are penalties for not activating within 30 days, this has to be assuming that the phone is purchased, and then activated at a later date (a.k.a. not activated right at purcase, in the store)... right? What's going on here, which is it???

I think waht is going on here, is since AT&T is subsidizing the phone. they may be taking the stance that if you do not activate your phone, you will be automatically charged (and taken to collections) for the price of the full phone, and then they may put a block on the FCC CAP# preventing it from being able to be activated anywhere else. But if you do want it activated through AT&T, they will not let you until the penalty is paid.

kinda like what Sprint does, if your payment lapses or you cancel your contract you are charged an early termination fee. then you cannot re-activate your phone without paying the fee and a re-connection charge.

This may not be apple's doing ,but may be AT&T's.

[Tosser]

Originally Posted by shervieux

I think waht is going on here, is since AT&T is subsidizing the phone. they may be taking the stance that if you do not activate your phone, you will be automatically charged (and taken to collections) for the price of the full phone, and then they may put a block on the FCC CAP# preventing it from being able to be activated anywhere else. But if you do want it activated through AT&T, they will not let you until the penalty is paid.

kinda like what Sprint does, if your payment lapses or you cancel your contract you are charged an early termination fee. then you cannot re-activate your phone without paying the fee and a re-connection charge.

This may not be apple's doing ,but may be AT&T's.

Oh, ****! I'm glad I don't live in the US - what the hell happened to consumer rights?

[jive turkey]

Originally Posted by GoaTrancer

Republicans.

How sad it is that so many people want the government to be their momma and papa. For goodness sake people, you know what the deal is before you buy the phone, and if you don't like it DON'T GET IT! It isn't the responsibility of government to make all products available to you in the way you want them.

Don't want to get fat? Well, screw the choice of not eating at KFC, let's get the government to ban transfats! Hmmm, I wonder if the government would mind stepping in and mandating that Bravo find some way to get a high-def signal to my house so I can get the network in HD, since it is available with DirecTV but not my cable provider. That just isn't fair, darnit!

Let's look at some basic economics here. In a free market, what do you think is going to happen since the iPhone is locked in to AT&T for 4 more years? Do you think T-Mobile, Verizon, and Sprint are going to go into their respective closets and hide until these 4 years have passed? Or do you think they are going to say, "Screw this! We will develop a competitor to the iPhone!"

If you said the exclusive contract with AT&T will spur development of new phones, move to the head of the class. If the iPhone was available on all networks there would be no incentive for these carriers to invest in new technologies. Further, what will happen when new phones are developed? Why, Apple will have to improve the iPhone to keep up and AT&T will have to lower the prices (or resist increasing them) to stay competitive.

The reason wireless companies can get away with contracts is because people sign up for them. Stop signing up for contracts (use a prepaid service) and they will have no choice but to do away with them.

Within the next 18 months there will be a boat load of iPhone-like devices to choose from, and they will all be cheaper than the iPhone/AT&T combo is now. In response Apple will be forced to dramatically improve the iPhone, and everyone will be a winner....regardless of what cell phone carrier you are with.

[hiimamac]

Originally Posted by jive turkey

How sad it is that so many people want the government to be their momma and papa.

I have a question for you - as I said in my previous post, if I don't want the gov. to be my DAD (Demo) and think that gov is out of control (REB) and acted like our forefathers and took to the streets (gas stations, pumps, ship yards) and organized (similar to what you said, only instead of not paying for it, thought it was "out of control" and organized 10's of thousands and instead of pitch forks and single shot ball bearing rifles, we had M16's, Grenade launchers, and took over the ports, basically an up rise keeping the BOSTON TEA PARTY as a model, how do you think that would be perceived?

Actually, while you my say terrorism (which is what our forefather would have been), actually, if something like this happened, I think it would grow pretty fast, much faster than say a small sect would have been a few years ago. People are angry from California to Maine and everywhere in between.

So, what happens then when a group of people use the constitution as you say, but don't sit at home and become more pro-active and act it out similar to the forefathers? Interesting idea. Possible screenplay. Hmmmm.

[hiimamac]

Originally Posted by shervieux

I think waht is going on here, is since AT&T is subsidizing the phone. they may be taking the stance that if you do not activate your phone, you will be automatically charged (and taken to collections) for the price of the full phone, and then they may put a block on the FCC CAP# preventing it from being able to be activated anywhere else. But if you do want it activated through AT&T, they will not let you until the penalty is paid.

kinda like what Sprint does, if your payment lapses or you cancel your contract you are charged an early termination fee. then you cannot re-activate your phone without paying the fee and a re-connection charge.

This may not be apple's doing ,but may be AT&T's.

• Well if they can ZAP the phone let alone find the phone (not sure if I like that or not, perhaps if it was stolen) then maybe they can charge you - on the other hand, if you're buying as a gift, I don't see what they can do. They certainly cannot charge the purchaser if he/she is buying it as a gift - not sure if I could stand seeing the chinese lines again at apple store and their so called 5 iphone gift bags though.

Then again, if they can figure out how to buy a $200 phone, and if you're signed up with AT&T already, it would be pretty dope to somehow get the 3G for free, a savings of $720, this, one would think, would be quite popular, similar to OSX86, the hacking site.

[sam-i-am]

Originally Posted by orijinal

First it's reported that they must be activated in-store. If there are penalties for not activating within 30 days, this has to be assuming that the phone is purchased, and then activated at a later date (a.k.a. not activated right at purcase, in the store)... right? What's going on here, which is it???

This is exactly what I thought. It really doesn't add up - we need more info.

[ddTaylor]

It is not that I cannot get a contract (I can) - I choose NOT to sign a long-term contract. AT&T service in Mid-Illinois is spotty at best and NO 3G in a Big 10 University town! Go figure! AT&T said with the prevalence of Wi-Fi in this area 3G is not a priority for my community.

Anyway - does anyone know the NON-subsidized price? I just sold my iPhone on Craigslist last week in order to get the new iPhone for GPS support (mainly) and now I read in order to buy the phone I MUST sign a 2-year contract. That blows...I like the old way it was done, but then again - the older I get the less I like change (I know, I sold one iPhoe to get a new iPhone, a bit of a Paradox).

Anyone? Can it be purchased without a contract? If I buy it and slap my SIM card in it and DO NOT activate the phone with a 2-year contract, what will happen? A $200 charge on my CC? Cancellation of my Go Phone service?

Thank you in advance - if you know.

D

[iVoid]

Originally Posted by ddTaylor

It is not that I cannot get a contract (I can) - I choose NOT to sign a long-term contract. AT&T service in Mid-Illinois is spotty at best and NO 3G in a Big 10 University town! Go figure! AT&T said with the prevalence of Wi-Fi in this area 3G is not a priority for my community.

Anyway - does anyone know the NON-subsidized price? I just sold my iPhone on Craigslist last week in order to get the new iPhone for GPS support (mainly) and now I read in order to buy the phone I MUST sign a 2-year contract. That blows...I like the old way it was done, but then again - the older I get the less I like change (I know, I sold one iPhoe to get a new iPhone, a bit of a Paradox).

Anyone? Can it be purchased without a contract? If I buy it and slap my SIM card in it and DO NOT activate the phone with a 2-year contract, what will happen? A $200 charge on my CC? Cancellation of my Go Phone service?

Thank you in advance - if you know.

D

At present, there doesn't seem to be a way to get it without a contract in the US.

Maybe you could get an unlocked 3g iPhone from one of the countries that don't allow phones to be locked. Time will tell.

[Aznsensation45]

Originally Posted by ddTaylor

Anyway - does anyone know the NON-subsidized price?

Just for clarification...there are NO SUBSIDIZED PRICES! this is the base price... no rebate..nothing..it's just that..

anyways..i'm with AT&T already and i'm in a family plan..so it's not that bad.

[ddTaylor]

Originally Posted by Aznsensation45

Just for clarification...there are NO SUBSIDIZED PRICES! this is the base price... no rebate..nothing..it's just that..

anyways..i'm with AT&T already and i'm in a family plan..so it's not that bad.

According to other posts you are correct (technically) but you cannot leave the store with the phone without first signing a 2-year contract. I have a 1st generation 8GB iPhone on the Go Phone plan. I get a few less minutes versus a contract but I never run out. I use it for EDGE and e-mail mainly. I do not want to be tied into a contract. So maybe you are correct but I cannot get a $299 16gb iPhone and take it home without first signing a contract.

D

[L3X]

Originally Posted by Aznsensation45

Just for clarification...there are NO SUBSIDIZED PRICES! this is the base price... no rebate..nothing..it's just that..

anyways..i'm with AT&T already and i'm in a family plan..so it's not that bad.

Everyone that has a cell-phone plan is "owned" in some way. I'm owned by Verizon right now, and for the past few years. I'm switching to AT&T and will be under contract with them for at least two years. Who cares. That's the wireless market right now. If you don't want to be under contract, don't sign up, it's as easy that. Our wireless contracts are contracts of adhesion - advantage: wireless provider. They can put the terms in it they want (within reason of course). If you want to do business with them, you sign the contract. No one is forcing anyone to buy an iPhone and sign up with AT&T. Too many whiners on this forum.

I don't understand all the people that complain about the locked phones, blah blah blah. Apple and AT&T and any other business is in it FOR THE MONEY not to make everyone and their mom happy.

Like others, I would prefer to pay more up front, rather than the higher monthly costs. But, I like the new iPhone and I'm going to get one. Maybe after two years I won't like it and I won't get another one. If I do, I will keep buying them down the road.

The unlocking rules will hopefully keep the iPhone a rare device and it won't become diluted like the razor, blackberry, etc.

[iStefmac]

Originally Posted by L3X

Everyone that has a cell-phone plan is "owned" in some way. I'm owned by Verizon right now, and for the past few years. I'm switching to AT&T and will be under contract with them for at least two years. Who cares. That's the wireless market right now. If you don't want to be under contract, don't sign up, it's as easy that.

I don't understand all the people that complain about the locked phones, blah blah blah. Apple and AT&T and any other business is in it FOR THE MONEY not to make everyone and their mom happy.

Or you can get gophone, prepaid account with AT&T and then you own them, not the other way around.

[Tosser]

Originally Posted by Amigori

500+ posts in this now Off-Topic thread, chatting about capitalism v. socialism, and I'm AMAZED that no one has mentioned the SIM Ejector Tool included in the box with the phone. I don't have any more details other than what's on the iPhone Specs page. But come on, you mac zealots usually have that page memorized by now. That tells me that you should be able to put in $YourFavoriteCellProviders SIM card and activate it.

It just tells me that Apple made a design-woops, in that you apparently _need_ a tool to remove the SIM-card.
Btw. Some people pop their sim card into their car. Well, I don't, but some do.

Plus, if you notice, it has Tri-Band 3G, which includes both American and European bands. Nokia hasn't even done that yet. Only the THIRD version of the N95 supports American 3G. And even then, you have to set it up yourself, and it only runs on ATTs 3G network, no T-Mobile (US) support. Granted, the iPhone doesn't support T-Mobile's 1700Mhz 3G band either, but there's only what, 3 1700Mhz towers out there? And a handset or two with 1700Mhz chips in it?

Well, seeing that most phones will be sold in the iPhone's homemarket, that is actually a little disappointing. Not to me, as I don't live over there, but still I'm surprised it doesn't support 1700 MHz.

Originally Posted by L3X

I don't understand all the people that complain about the locked phones, blah blah blah. Apple and AT&T and any other business is in it FOR THE MONEY not to make everyone and their mom happy.

What a weird - yet widespread - notion. All in an effort to defend any behaviour from any corporation.

The thing is, ou can take that to the extreme. Some chemistry corporation is also out to make money, not please their workers and so on. But that does not entitle them to, say, underpay their workers, skimp on safety equipment (such as suction) and so on in order to save money. Or a corporation that choose to, say, bullying people by way of lawyers into paying their wrong bills (i.e. bills that "by mistake" are too high). I could go on, but you get the picture.
The thing is, even if any company/corporation is in it for the money, doesn't mean that in order to maximise that parameter, they can forego any and all other parameters. And it certainly does not mean that "since they're in it for the money, it's their right to do whatever they please. So noone should "badmouth" them", if you see my point.

[GregorBehr]

Originally Posted by Tosser

It just tells me that Apple made a design-woops, in that you apparently _need_ a tool to remove the SIM-card.
Btw. Some people pop their sim card into their car. Well, I don't, but some do.




Well, seeing that most phones will be sold in the iPhone's homemarket, that is actually a little disappointing. Not to me, as I don't live over there, but still I'm surprised it doesn't support 1700 MHz.


What a weird - yet widespread - notion. All in an effort to defend any behaviour from any corporation.

The thing is, ou can take that to the extreme. Some chemistry corporation is also out to make money, not please their workers and so on. But that does not entitle them to, say, underpay their workers, skimp on safety equipment (such as suction) and so on in order to save money. Or a corporation that choose to, say, bullying people by way of lawyers into paying their wrong bills (i.e. bills that "by mistake" are too high). I could go on, but you get the picture.
The thing is, even if any company/corporation is in it for the money, doesn't mean that in order to maximise that parameter, they can forego any and all other parameters. And it certainly does not mean that "since they're in it for the money, it's their right to do whatever they please. So noone should "badmouth" them", if you see my point.

You're comparing human safety in the work place over the cost of what your cell runs you each month?

[Cougarcat]

Originally Posted by ddTaylor

It is not that I cannot get a contract (I can) - I choose NOT to sign a long-term contract. AT&T service in Mid-Illinois is spotty at best and NO 3G in a Big 10 University town! Go figure! AT&T said with the prevalence of Wi-Fi in this area 3G is not a priority for my community.

Anyway - does anyone know the NON-subsidized price? I just sold my iPhone on Craigslist last week in order to get the new iPhone for GPS support (mainly) and now I read in order to buy the phone I MUST sign a 2-year contract. That blows...I like the old way it was done, but then again - the older I get the less I like change (I know, I sold one iPhoe to get a new iPhone, a bit of a Paradox).

Anyone? Can it be purchased without a contract? If I buy it and slap my SIM card in it and DO NOT activate the phone with a 2-year contract, what will happen? A $200 charge on my CC? Cancellation of my Go Phone service?

Thank you in advance - if you know.

D

Well, since AT&T is moving the iPhone to the normal smartphone plans, you should be able to get it without the data if you can stan a 2-year voice plan.

2-year contracts + locked phones are the biggest scam. I want to see the day when both are made illegal.

[koobcamuk]

Originally Posted by ddTaylor

If I buy it and slap my SIM card in it and DO NOT activate the phone with a 2-year contract, what will happen? A $200 charge on my CC? Cancellation of my Go Phone service?

I reckon they'll block the IMEI - rendering the phone useless in that country.

Originally Posted by ScottP

Customers will soon be able to enjoy all the great features of iPhone without a monthly contract with the iPhone for Pay & Go.
(https://www.o2.co.uk/iphone/paygo)

This is a huge step forward for the UK iPhone. I still hope I can unlock one... I wish they sold it SIM free.

[scotty56]

wooooow. I always wondered what they would do next to stop the mice..

[raykhrud]

Well, i would have been glad to buy an official iPhone. Now I can't even unlock Finnish one. Thank you, Apple! For some very interesting reason I can buy iPhone in some third-world country like Niger, but can't in Russia. Very good job, even better than my rotten macbook. (it was actually rotten when I bought it).
Maybe Apple will finally think about customers?

[Gasu E.]

Originally Posted by raykhrud

Well, i would have been glad to buy an official iPhone. Now I can't even unlock Finnish one. Thank you, Apple! For some very interesting reason I can buy iPhone in some third-world country like Niger, but can't in Russia. Very good job, even better than my rotten macbook. (it was actually rotten when I bought it).
Maybe Apple will finally think about customers?

Apple products make me happy. Why would Apple want to make you all happy? A happy Russian is like a cat with its claws removed; it may seem benign, but claws are one of the things that make a cat a cat. A happy Russian is no Russian at all. The world needs a big gloomy grey morose alcohol-abusing culture right about where you are standing. Thank you, Apple, for your continuing service in helping to maintain the grey and gloom of the Russian people.

[Anuba]

Originally Posted by Gasu E.

Apple products make me happy. Why would Apple want to make you all happy? A happy Russian is like a cat with its claws removed; it may seem benign, but claws are one of the things that make a cat a cat. A happy Russian is no Russian at all. The world needs a big gloomy grey morose alcohol-abusing culture right about where you are standing. Thank you, Apple, for your continuing service in helping to maintain the grey and gloom of the Russian people.

Heheh... well well, a real live person from the 1950's. So time travel does work.

Russia, annual economic growth rate: 8%
USA, annual economic growth rate: 1%

You see, during your last 8 years under Curious George, the rest of the world has swooshed past you like a Maglev train. 50 years ago we all followed America's lead, now we see it more as a cute time bubble where 80's hairdos and theory of evolution dismissal rules supreme.

Originally Posted by Amigori

I'm AMAZED that no one has mentioned the SIM Ejector Tool included in the box with the phone.

It's been brought up many times, but this tidbit never sticks for more than half a page...