AT&T iPhone 3G Upgrades and Eligibility

[MacRumors]

It seems there's a lot of confusion about iPhone 3G upgrades and activation. Here's what is known at the moment to try to clarify the confusion. All of this applies to the U.S. and AT&T only.

The iPhone 3G is a subsidized mobile phone, which means that AT&T is paying ~$200 to discount the phone down to its final price. $199 for 8GB or $299 for 16GB. The reason AT&T is subsidizing the phone is because they expect to make more than $200 over the lifetime of a 2 year contract. For the iPhone 3G, the contract includes $30/month for 3G data, and at least $39/month for the low end voice contract.

If you currently own:

1st Generation iPhone

If you bought it on or after May 27th, you are eligible to receive a free upgrade to the iPhone 3G when it launches. You will also get a refund for the difference in the price.

If you bought it before May 27th, you may buy a new iPhone for $199 (8GB) or $299 (16GB) but will have to sign a new two year contract starting on the day you buy the new iPhone. This cancels and replaces your existing AT&T iPhone contract.

AT&T Mobile Phone (not iPhone)

AT&T generally allows individuals to take advantage of a subsidized phone once every 2 years. A new memo clarifies this point. If you are an AT&T customer, you must either have completed a 24 month contract or meet these requirements to be able to purchase the iPhone 3G for $199/$299 prices:
#1. Customer has had a standard calling plan plus data services costing at least $68.99 a month but no more than $98.99 a month, and who has been in contract (and not had a phone upgrade) for 21 months or more,
or
#2. Customer has had a standard calling plan plus data services costing $99 a month or more, and who has been in contract (and not upgraded) in the last 12 months.
or
#3. A customer with a calling plan and data services of less than $69 who is 21 to 23 months into contract may upgrade for a fee and a commitment of an additional two-year service contract extension.

No upgrade fee is assessed for any customers who are on a month-to-month agreement.

If you are not eligible, AT&T expects to announce the higher unsubsidized iPhone 3G price in the future. This price can be expected to be about $200 higher.

Alternatively, you can cancel your existing mobile phone contract and pay the $175 early termination fee, you will probably then be eligible for the $199/$299 iPhone 3G.

Non AT&T Mobile Phone

If you are under contract with another mobile phone provider, you may be subject to an early termination fee if you cancel your contract prematurely. You will need to contact your provider for those details, but you will be able to get the iPhone 3G from AT&T at the $199/$299 prices. If you would like to transfer your current mobile phone number to the iPhone 3G, you should not cancel your current service. Instead, you should initiate the phone number transfer from AT&T when you buy the iPhone 3G.

What If...

What if I want to buy an iPhone 3G and not use it on A&T?

There are a number of issues regarding this. First, the iPhone 3G firmware has not been unlocked, despite reports. The final iPhone 3G firmware is said to be different than the current 2.0 betas. So, you may not be able to unlock it at all.

If you are able to unlock it, you won't be able to use the iPhone 3G on any other carrier in the U.S. T-Mobile doesn't support the same 3G network that the iPhone uses. So while you might be able to make phone calls on T-Mobile, you won't be able to use 3G data.

If you must have an iPhone 3G outside of an AT&T contract, here are the steps. Buy an iPhone at $199/$299. Wait 30 days. Pay one month of service. Cancel your account. Pay $175 early termination fee. There, you have an iPhone 3G without AT&T contract. If you cancel your account before one month of service, you will have to return the iPhone to AT&T.

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[zephead]

Hmm... Since this would mean I'm ineligible for an upgrade (re-upped last August or so), would anyone happen to know if it would work to grab a 1st-gen iPhone off Craigslist, go to AT&T and have them give me a 16GB iPhone 3G for $299?

[bigmc6000]

Originally Posted by zephead

Hmm... Since this would mean I'm ineligible for an upgrade (re-upped last August or so), would anyone happen to know if it would work to grab a 1st-gen iPhone off Craigslist, go to AT&T and have them give me a 16GB iPhone 3G for $299?

Hmm - you REALLY want a new iPhone that bad? Well - I guess it MIGHT work. I wouldn't put it past AT&T to give ya the shaft tho.

This is pretty decent except for the fact that they aren't offering a non-subsidized version for those who can't upgrade. Glad to see they are taking care of the 1st Gen iPhone owners.

[deannnnn]

So AT&T is punishing their own customers?!?
That's cold, AT&T. That's cold.

[Diode]

Originally Posted by deannnnn

So AT&T is punishing their own customers?!?
That's cold, AT&T. That's cold.

Punish as in how? You can't get cheap discounts on phones as current customer unless your eligible for a upgrade. I think the upgrade comes every 18 months ....

[deannnnn]

Originally Posted by Diode

Punish as in how? You can't get cheap discounts on phones as current customer unless your eligible for a upgrade. I think the upgrade comes every 18 months ....

Well pretty much everyone gets the new iPhone for $200 unless you are a current AT&T customer who does not own an iPhone. That just doesn't make sense to me.

[charlituna]

Originally Posted by deannnnn

So AT&T is punishing their own customers?!?
That's cold, AT&T. That's cold.

no more so than they do if you want to upgrade your regular cell phone.

[Diode]

Wow if I didn't think things could get any more confusing.

Couldn't AT&T just go ahead and finalize the details already .... I have a feeling the iPhone is not being released until the 11th of July is because nothing plan related was finalized at the time of the keynote.

[MNTwinsFan]

Originally Posted by Diode

Wow if I didn't think things could get any more confusing.

Couldn't AT&T just go ahead and finalize the details already .... I have a feeling the iPhone is not being released until the 11th of July is because nothing plan related was finalized at the time of the keynote.

I think they waited for July 11, because that's the final date for the Stimulus payments to be mailed out.


So, Apple is hoping you'll spend some stimulus on the iPhone 3G

[cmendill]

I like many existing att customers, realize now that I am ineligable to get the iPhone for $199/$299. But had I known that this was going to be the policy, I could have bought a 2G iPhone after the 27th, started a new contract without paying the termination fee and traded that in for the 3G iPhone plus $200 back.

That doesn't seem right. We're getting screwed for knowing the new iPhone was coming out, and waiting.

Can you still buy 2G iphone???

Probably not. Ah well.

[GreenFreaK]

I believe that AT&T will post a non-subsidized price before July 11th because they won't want to miss out on the sale. that's like saying, "no, I don't want your $500."

[alphajerk]

So, if you are not eligible, you should still be able to get an iPhone for $499, etc., just like the first gen. people paid in the first place. IT probably would have been better if Jobs had presented it this way. The new phone cost $499, but hey, good news it will be subsidized if you are eligible. At the conference, they just made it sound like it was going to be $299 no matter what, which was slightly misinforming. In the end, I suspect, people will fork over the dough to get one.

[Rychiar]

wait im confused about this point for 1st gen iphone users. It says if u buy a new one it cancels and replaces your current contract in this post. So if i buy a new one and sign a contract im only in it for 2 years as opposed to 2 years plus the 1 year i have left on my current contract?

[GeekLawyer]

Originally Posted by Rychiar

wait im confused about this point for 1st gen iphone users. It says if u buy a new one it cancels and replaces your current contract in this post. So if i buy a new one and sign a contract im only in it for 2 years as opposed to 2 years plus the 1 year i have left on my current contract?

Yes. You'll have a new 2-year contract that will begin on July 11 (or whenever). The year you have left on your current contract is "forgiven" and replaced by the new contract.

[charlituna]

Originally Posted by GeekLawyer

Yes. You'll have a new 2-year contract that will begin on July 11 (or whenever). The year you have left on your current contract is "forgiven" and replaced by the new contract.

i think you are a tad mistaken.

it would seem more like the difference between the $199 that Jobs and Apple are saying and the $399 is that, if you aren't at the end of a current contract, you would be considered having broken your contract and will thus be charged for it.

now here is my thought, at least in regards to current iphone users. since you are 'breaking' an iphone contract to sign an iphone contract, someone will get up the goat to file a lawsuit and it will go class action and everyone will get the money back because none of them choose to break the old contract. unless ATT can show that really the cost of the phone should have been $599 but they paid the missing $200 to make it $399 for those folks. but I suspect they can't. because they didn't.

non iphone folks are probably just screwed cause they will be dealt with according to standard cell phone game rules. although $200 seems excessive if one is close to the end of a contract. a prorated fee seems more reasonable.

[DubbleDuecer]

Question though. I think I am in both groups, do i get the cheap price or not? I am currently a 1st iphone owner. I switched to AT&T about 10 months ago(got a blackjack for 50 dollars) 2 months into my contract i bought the Iphone since no matter how long you have been in contract it just started you over for 400 bones. So technically i dont qualify for upgrade because I got the black jack 10 months ago for subsidized price, but I am currently a 1st gen iphone owner, so which group am I in? Do i get the 200 dollar phone? Also, I sold my iphone last week for 375, do i just buy an unsubsidized phone and keep my 2g and 200 texts for 20 bucks ( i live no where near 3g) or do i pay the 200 and pay 30bucks a month(pending i am even able to get it for that price) Or last option is to pay the 175 cancelation fee then resign up and get the 200 dollar phone- I wouldnt be losing and money since i have 375 in my hand.? SORRY for the novel....

[mjerald]

Originally Posted by DubbleDuecer

Question though. I think I am in both groups, do i get the cheap price or not? I am currently a 1st iphone owner. I switched to AT&T about 10 months ago(got a blackjack for 50 dollars) 2 months into my contract i bought the Iphone since no matter how long you have been in contract it just started you over for 400 bones. So technically i dont qualify for upgrade because I got the black jack 10 months ago for subsidized price, but I am currently a 1st gen iphone owner, so which group am I in? Do i get the 200 dollar phone? Also, I sold my iphone last week for 375, do i just buy an unsubsidized phone and keep my 2g and 200 texts for 20 bucks ( i live no where near 3g) or do i pay the 200 and pay 30bucks a month(pending i am even able to get it for that price) Or last option is to pay the 175 cancelation fee then resign up and get the 200 dollar phone- I wouldnt be losing and money since i have 375 in my hand.? SORRY for the novel....

You get the new iPhone. I am in the same situation and talked to AT&T rep.
here's the reply :

Thank you for taking the time to e-mail the new AT&T. I understand you
are wondering if you are eligible to upgrade to the 3G iPhone when
available on 07/11. I apologize for any confusion you have been caused
by our upgrade policy and I am happy to help you with your inquiry.

I have reviewed your account and since you do already have an iPhone,
you will be able to upgrade to the new iPhone if you wish. Any other
device that is not yet eligible for a discounted upgrade would need to
wait until they are eligible; however, current iPhone users may upgrade
to the new iPhone at any time. I apologize for any further inconvenience
this concern may cause.

[charlituna]

Originally Posted by GreenFreaK

I believe that AT&T will post a non-subsidized price before July 11th because they won't want to miss out on the sale. that's like saying, "no, I don't want your $500."

but the trouble there, to ATT, is that if they don't subsidized the phone, folks will scream foul about being forced to go with ATT at time of purchase, take the phone home and unlock it etc. and that is one of the things they are trying to prevent. that's why they don't want you to leave the store without a contract for service. or a way to charge you if you don't sign up. it's also why they are making you return the phone if you want to cancel.

[puckhead193]

umm no news on new subscribers other then to save your number...

[arn]

Originally Posted by puckhead193

umm no news on new subscribers other then to save your number...

What other news is there? You are eligible for the subsidized price.

Sign up!

arn

[bcwilson]

Does anyone have any definitive answer about this yet?

I just switched to AT&T in anticipation of the iphone 3G, and now im finding out that I might not even be able to buy it?? Since I joined June 11, he said I'd have to get it right on July 11 in order for it to be in some 30 day window for something or other, otherwise I'd need to be eligible for an upgrade. I figured he just didn't know what he was talking about. This just seems incredibly foolish for them to say, "Nope, sorry, you cant buy one for x months."

wtf?!

[captain kaos]

Originally Posted by bcwilson

Does anyone have any definitive answer about this yet?

I just switched to AT&T in anticipation of the iphone 3G, and now im finding out that I might not even be able to buy it?? Since I joined June 11, he said I'd have to get it right on July 11 in order for it to be in some 30 day window for something or other, otherwise I'd need to be eligible for an upgrade. I figured he just didn't know what he was talking about. This just seems incredibly foolish for them to say, "Nope, sorry, you cant buy one for x months."

wtf?!

Im from the UK, with O2 (lets hope they sort out the PrePay deals soon!) and the ATT contracts may be different than over here, but why did you sign up to a new contract on the 11th june knowing you could wait a month to sign up AND get the new iphone?

[BitOgre]

Originally Posted by MacRumors

If you are not eligible, AT&T expects to announce the higher unsubsidized iPhone 3G price in the future. This price can be expected to be about $200 higher.

Alternatively, you can cancel your existing mobile phone contract and pay the $175 early termination fee, you will probably then be eligible for the $199/$299 iPhone 3G.

For those not eligible, why would they pay $200 more to get the new iPhone when the $175 early termination fee is cheaper? Is there some negitive side to going through early termination?

[jplan2008]

Originally Posted by BitOgre

For those not eligible, why would they pay $200 more to get the new iPhone when the $175 early termination fee is cheaper? Is there some negitive side to going through early termination?

1) There's also an activation fee ($36? I can't remember, but think it's over the $25 difference)
2) You lose your phone number

[bsgx]

I don't know what everyone is so worried about. Do you really think if you have the original iPhone that they will turn down your money? It will be $199 if you already have the regular iPhone.

And I cancelled my iPhone last week. I didn't need the new one with 3G, and with the volume of email I do and SMS, I just need a real keyboard, so I bought a Blackberry. I did not have to pay $175 cancellation fee and they gave me the Blackberry for the subsidized price, no questions. I got my iPhone on launch day last year, and cancelled it only 11 months into the contract and I had to pay NO cancellation fee.

The people who work at the store don't typically follow all the rules, IMHO. They just want to sell new phones.