Good for AT&T as a corporation.
But people are being ripped off. I lived in France for a year and a half until this month when I returned to the US and I had an iPhone over there with Orange and my plan was 39 a month which included 240 minutes talk (keep in mind ALL incoming calls are free) a 3 a month discount for being under 26, unlimited texts and the unlimited data. Everything worked, always had service because european GSM is more developed than AT&T's. Oh and tethering and MMS worked ON THE DAY it was released. Not only that but the phone at the time cost me 99 when the same 8GB 3G was going for $199 under contract by AT&T. It was actually affordable to own an iPhone. And after competition was allowed with the iPhone opened to the 2 other carriers SFR and Bouygues the plans were lowered in price.
The cheapest plan you can get here is $70 minus taxes and if you want unlimited texts that's an extra $20. So for a similar plan in the US I would have to pay over $100 a month after taxes. That's pretty outrageous, which is why I decided to sell my legally unlocked iPhone here (see Orange did it once I left, but AT&T won't even do that even after your 2 years are up) and stay with Verizon. I did not want to give up using my iPhone because it is the best phone I have ever used, but I cannot justify paying over $100 a month for the plan and living in New York I know how awful coverage is by AT&T here. Yes Verizon has similar data plans etc, but at least they work most of the time. With AT&T you are getting ripped off and charged for a service that doesn't work.
Glad for all of you who can afford $100 a month and get get good coverage but really the iPhone would be much better served if it was allowed in other carriers for some price competition. Why does it have to be so expensive in the US and so cheap in Europe?