AT&T/Cingular to Give Away 18 Months of iPhone Service?

[imikem]

It also sounds like it will only be available to users currently on Verizon. Those of us who've been on AT&T nee Cingular nee AT&T for years will get screwed. Unless of course we maybe discuss moving to Verizon with our friendly customer service critter.

 

[stormsweeper]

Unlocked phones are bound to have more issues because they aren't 'locked' to the Cingular network and calibrated to work the best. There's a reason Cingular spend so much money and the most time of any wireless network testing their phones. Buy an unlocked phone and you'll have more issues.

They do nothing of the kind. Locking and unlocking GSM phones is part of the GSM spec itself, and all it does is restrict which SIM cards will work in the phone. So any phone you get from Cingular will be locked to them, as will any from T-Mobile. The manufacturers just provide the phones pre-locked for them, and in special packaging.

The biggest issue you could have with Cingular-specific reception is if your phone doesn't support the 850 band, which many phones don't since it's relatively new.

 

[SiliconAddict]

Now THIS is revolutionary!

Sounds too good to be true though. I was expecting very aggressive data-plan pricing, but this goes far further.

Which prob means it is. I wonder if they are going to pull an AOL. Get you signed up and make it hard as heck to leave after your 2 years is up. Read: Give you the run around when you call, don't process your paperwork, upgrade your service instead, etc. I know several people who had to threaten to bring in the lawyers to get AOL to drop them....I wonder.

 

[icerabbit]

I can see where Cingular would give some 'free' service given that there is no precedent for price reductions with Apple.

In my opinion however, 18 months of free service is wishful thinking. 18x $40 - $50 for the average plan? $720 - $900?! I don't think so.

MAYBE you will get a basic rate cut / rebate for 6 months of service and thus pay 18 months out of your two year contract. Like, $240 of loyalty bonus credit which would come out of the iPhone retail cost and the net profit for a number of months.

 

[synth3tik]

I've been seeing a lot of internet banners "Get your free iPhone, HURRY!!! only a few have been released", well at least if they give away 1 1/2 years of serbice, leaving a person with only 6 months of bills, thats cool and I guess realistic, maybe

 

[cherrypop]

That is utter BS.

Do you own an unlocked phone? Have you ever used an unlocked phone? Can you support your statement in any way?

Carrier-free phones have nothing to do with the quality of service.

I've owned five, and I've never had a single issue related to the fact that it's carrier free. Zero.

Unlocked phones are bound to have more issues because they aren't 'locked' to the Cingular network and calibrated to work the best. .

 

[Rocketman]

This is consistent with what I posted in the original iPhone (ATN) thread.

Rocketman

 

[yg17]

Wirelessly posted (BlackBerry8100/4.2.0 Profile/MIDP-2.0 Configuration/CLDC-1.1 VendorID/100)

As far as the unlocked thing goes, my brother is now using the w810 on Tmobile and gets the same good signal strength and call quality that I do on my tmo locked blackberry or my parents tmo locked Samsung phones. Its not the phone that's the problem, its Cingular.

 

[iVoid]

Well, considering I pay almost $600 for 18 months on my current phone (a SonyErricson T610 from TMobile), 18 months free for a $600 phone would be a great deal. Almost too good to be true.


I imagine the 6 months left on the 2 year plan would be $1000 a month though...

 

[Rot'nApple]

Now this sound 2 good 2 B true! But if it is true... YES! I TAKE BACK ALL THE COMPLAINING I DID ABOUT THE CINGULAR DEAL!

Now, where can I sign up? Cingular.. I want to give you $500 right now for the iPhone and sign that 18-free-months + 6-payed-months contract!

18-free-months + 6 paid months... I wonder what the monthly rate will be for those six paid months...

 

[averyash]

I can't really believe that they'd give up 18 months of service charges, but if that was 18 months of free data, it'd be more believable. That would be the same as buying the phone for $150 or so w/regular 2yr contract, I'd guess.

does make it more attractive for us Yanks. hmmmmm...

There we are... I think that what most people have been missing is what Cingular might be giving away for free.

Giving 18 months of free full cellphone service would make VERY little business sense, however providing 18 months of free data makes decidedly more sense, and is not unprecedented. Cable companies already offer periods (sometimes lengthy) of free premium service, they get you hooked, the trial expires, and you now are rationalizing paying for their premium service. Satellite radio companies offer free subscriptions for several months, get you hooked, and then start charging you. Why shouldn’t the new AT&T work the same way: Create hype, get Verizon customers to switch, demonstrate what a great product this is, and keep these customers.

Cingular/AT&T would be very savvy to do this.
-customers would be locked into a two year contract, so the final 6 month would be paid at full price
-during the first 18 month, while the data service could be free, customers would still be paying for regular service ($50/mon +/-)
-Cingular will NOT be able to subsidize the cost of purchasing the phone (as a stipulation to the exclusive carrier contract), so subsidizing the plan is the next best option
-creates “product hype” and a direct incentive for people to purchase an iPhone and start service.
-once you have an iPhone, you have paid a major entry fee, and Cingular would be wise to realize that once you have the phone you have two choices: maintain your contract or be stuck with a $500 video iPod/PDA. Once a customer is in (Cingular is the exclusive carrier) they have no choice but to continue with the plan, but now paying for it.

Thoughts?

 

[Multimedia]

If True, I'm In At The End Of The Offer Opportunity

If this is true, I would accept such an offer right before its window ends as I am currently in a contract with Verizon that won't end until Spring 2008 and would prefer to have free or reduced fee service as long as I can get it past my contract with Verizon.

Sounds like a great way to get us to switch. I know it would get me to. Now how are we going to keep those iPhone screens from getting significantly scratched soon after we start using them?

 

[twoodcc]

Now THIS is revolutionary!

Sounds too good to be true though. I was expecting very aggressive data-plan pricing, but this goes far further.

i'm thinking the same thing! i sure hope it's true though!

 

[justflie]

I could see them offering a basic plan free and allowing us to upgrade the plan (both data and voice) for a lower-than-usual fee. Boy, that would make my summer.

 

[whooleytoo]

Wirelessly posted (iPhone 4G/OSX 10.5/Safari 3.0/Black helicopters, snipers and sniffer dogs are chasing me, in hiding..)

I saw quoted elsewhere (from a more indirect quote) that Cingular were planning cheaper-than-normal, but not free, data pricing.

I'm guessing someone somewhere has their wires crossed. Perhaps there's no monthly 'subscription' charge, just call & data charges? Or the voice calls are free for the 18 months, data you have to pay for.

The duration is strange too, you get 18 months free of a 24 month contract. Do the prices go through the roof for the last 6 months for them to make their money back?

 

[ed233]

BUT, if we subsidize our service rather than the device then I think we've got a definite winner here! Makes more sense to me to subsidize is for the length of the contract so that payments are the same and there isn't sticker shock right at the 19-month mark ... but either way it turns so many people into customers. You wouldn't believe the number of people I've met as I travel around to my stores that say, "Oh my God, I am switching to Cingular once the iPhone comes out!!"

I was thinking the exact same thing- take the $250 or so dollars that they usually subsidize a handset for and discount the monthly bill over the life of the contract. If you tiered the discount, with more upfront, you could take advantage of inflation.

Giving service away for 18 months would make little sense unless they gave you 300 minutes, no mobile-to-mobile, and then kill them on overage charges. But that would probably leave a bad taste in people's mouths.

 

[kalisphoenix]

This is the only way my wife and I could (and would) get iPhones.

 

[justflie]

I think, regardless of whether or not AT&T was going to move in this direction originally, if this story gets enough media attention, it might push them to either actually do a free 18-month plan, or at least have a super cheap plan to make the expensive ATN (Go Rocketman) more palatable for the market.

 

[Bonte]

On the keynote i clearly heard the Singular guy say this price included a 2 year contract and not required, i guess its a basic plan with a fee per minute or per MB but its a good start. I would buy one just for the PDA features and occasionally use it as a GSM, perfect for me and Singular can claim a bigger market share. I digg.

 

[Bonte]

This is consistent with what I posted in the original iPhone (ATN) thread.

Rocketman

Me too, me too

Component costs are about 50% from the retail price (just like the iPod and other hardware from Apple so it doesn't do in subsidized hardware, Singular will have to promote it with a subsidized service instead.

 

[stagi]

no way

I doubt cingular will ever give away 18 months of service, no way that is going to happen. I think some people here just have way too much wishful thinking.

 

[googolplex]

tell me about it... i hope Telus Mobility will snag some deal with Apple 'cause they're for sure the best cellular company here in the east, but something tells me that the oh so evil Bell Mobility or Rogers *shiver* will be the ones with the iPhones.

I'm not sure how many times this will have to be said, but the iPhone is GSM. Telus and Bell are CDMA, so they're not going to get it. Rogers will get it as basically they are the only GSM game in town (after buying Fido). I don't know why people like Telus anyways... cool ads? Telus locks down their phones like crazy. On their mobile web browsers they restrict what sites you can go to.

 

[Stridder44]

I wouldn't take Cingular's service even if the iPhone and the monthly bill were given to me....

You're such a rebel. You're so cool, isn't that what I'm supposed to think?

Get over it, you know you would take it if they gave it to you. This is a really good deal if it's true. I will be sure to have $500 stashed away come June.

 

[j33pd0g]

18 months and 6 months of bills would be great, although, if the deal was 1 year free and 1 year of bills (more realistic) I would be fine with that too.

However, IMHO, this "situation" offers a chance at a turning point. AT&T/Cingular could pioneer a better "mobile communication service" model.

All this service/discount discussion makes me question the revolutionary premiss of the iPhone. Here you have new creative technology relying on the services that "may, or may not" be available for use. This stunts the capability of technology. My future prediction (for a carriers survival) will be that a "mobile communication service" needs to be flexible enough to adapt to the user... not the user to the service. Carriers need to think different - think "more simple." It won't be long before someone with a cool device wants it to reach more of the masses, and decides to invest in satellites and towers for that "out-of-the-box, ready-to-go" experience.

Concepts that I feel would accomplish this:

1. Provide use of all services, no matter what price point plan you choose.
Example: Monthly, Annually, Bi-Annually.

2. Unlimited use. No fear of going over with calls, text messaging, internet access.

IMHO, this type of "mobile communication services" model would open the flood-gates for mobile technologies.

 

[Stridder44]

Wired posted (TRS-80 0G/location unknown)

Wirelessly posted (iPhone 4G/OSX 10.5/Safari 3.0/Black helicopters, snipers and sniffer dogs are chasing me, in hiding..)

I saw quoted elsewhere (from a more indirect quote) that Cingular were planning cheaper-than-normal, but not free, data pricing.

I'm guessing someone somewhere has their wires crossed. Perhaps there's no monthly 'subscription' charge, just call & data charges? Or the voice calls are free for the 18 months, data you have to pay for.

The duration is strange too, you get 18 months free of a 24 month contract. Do the prices go through the roof for the last 6 months for them to make their money back?

This makes sense. I doubt Cingular (at&t now) would do this but hey, here's to hoping *cheers*