AT&T Considering Modifications to Deadline for iPad Unlimited 3G Service Activations

[topmounter]

You'd think a company like AT&T would have a better idea of what they're going to be doing or not doing three months in the future... especially when it involves a major product launch with their (supposedly) premiere device partner.

I don't buy into the theory that AT&T knew they were going to do this so soon after the launch of the iPad 3G when SJ announced the iPad.

I always thought the 2-year contracts with AT&T were best for their own self-interest, but judging by this sort of behavior, maybe that 2-year contract does more to protect AT&T customers from AT&T than the other way around

 

[MikeSmoke]

Had my 3g iPad for about 3 weeks. Signed up for the unlimited plan right away, just to have it on the go. Guess I will not be cancelling it now.

 

[Gleemen]

Stupid question: does this change apply to iPhones also?

 

[skellener]

Or just buy a WiFi only iPad and save yourself the headache.

 

[essinger]

I don't buy into the theory that AT&T knew they were going to do this so soon after the launch of the iPad 3G when SJ announced the iPad.

Yeah, I think it's pretty obvious that AT&T was caught off-guard by how much bandwidth iPad users were consuming, especially after the Netflix app appeared. Streaming video was never much of an issue with the iPhone. The real question is why would Apple not get some sort of a guarantee for that rate when they made the rate such a big part of their sales pitch.

 

[deconstruct60]

This type of accommodation would also be more consistent with its goal of limiting the number bandwidth hogs. Now, many 3G owners are going to rush to subscribe to the unlimited plan that were not subscribed just to get grandfathered. What happens next? You get people using more 3G bandwidth that ordinarily would not be on the system.

Actually they don't. Those folks were (or were planning to be ) hogs before. They are still hogs. They have just self identified themselves earlier than they would have. Anyone who is not planning to be hog will switch to the new plan because it saves them money . AT&T lowers the costs for 90+% of the users and have hundreds of posts about how this is a bad, evil, vile move. Surreal.


If a hog is going to pay for unlimited for several months when not using the iPad on 3G ( the period of time there were going to go contract free) then AT&T can take that money and time shift it to pay for costs when they blow out the 2GB level. This is similar to gas/electric companies that all winter month consumption charges to be spread out over the whole year. You run up a $800 in usages in January but only charge $300 and tack a $100 onto April-August bills. They still have the defacto soft cap to toss anyone who is the super hog category.


Sure, there will be some small set of folks who gratuitously use it "just because". Their numbers are limited by doing this sooner rather than later.
Everyone crying waiting longer would have been smarter are offbase. That is like proposing letting the oilspill run longer is better. If going to fix the pricing because the utilization model was off, better to do it sooner rather than later over the long term. By years end the number who had access to this plan will likely be less than 10% of all the 3G iPad users and none of the iPhone4G users who were not already a current iPhone hog. Having a known quantity of these self identified folks is worth it.

 

[stockscalper]

Putting caps like this on the data plan makes the iPad useless in my opinion.

 

[octane79]

Evo

Buy a Sprint HTC EVO 4G and use it as a mobile hotspot for 29.99/mo (unlimited access) or jailbreak your iPhone and install MiFi for 10.00 since you can keep unlimited data on your iPhone.

 

[essinger]

Putting caps like this on the data plan makes the iPad useless in my opinion.

It takes away what a lot of what was special about the iPad 3G and makes it more just a "giant iPhone" that can't make calls.

 

[tasset]

The wife and I got a wifi iPad, and then also got a 3G iPad a couple weeks ago under the premise that when one of us travel we could stream unlimited shows via Netfix or the ABC app for $30/month. But not to maintain the data plan month after month.
With this bait-and-switch I wonder if Apple will allow returns for full refunds?

 

[fmaxwell]

All of this very much points to AT&T losing exclusivity for the iPhone and iPad. And since the iPad 3G has only been offered with an "unlimited" plan for about a month before the change, my bet is the iPad will be the first Apple device to be available on Verizon (and maybe other carriers too).

I predict iPad for Verizon will be announced on Monday.

Mark

Mark, I have seen similar predictions every time that AT&T angered users, whether it's through delays in offering tethering, poor coverage, insufficient bandwidth, changes to pricing, changes to terms, limitations to usage, etc.

I have seen no evidence of FCC testing of a Verizon compatible iPad. If Apple were anticipating release of such an iPad, I would have expected the hardware to support the additional carriers to be present already.

 

[deconstruct60]

The real question is why would Apple not get some sort of a guarantee for that rate when they made the rate such a big part of their sales pitch.

Because the folks that run AT&T are not incompetent !! It is their network and they bare the costs of unplanned for events. I sincerely doubt Apple offered to cover the costs of that price guarantee with their $40B war chest. So why would a corporation agree to cover the costs incurred but a pseudo promise sales pitch made by another company?

If there was a suit to be filed it would be one for lack of fiduciary responsibility in that case. That is exactly dubious practice which jacked up AIG ( assuming large risk of other folks schemes without taking enough money to cover the increased risk. )

 

[Chupa Chupa]

Put all your cards in one basket & one must learn to live with no or little choice. This is how the Mac User can feel. All of our eggs are in one basket. This is even more true with the iPod, iPad & iPhone models.

Jobs had no cards when he was shopping the original iPhone around. Verizon told him flatly, no, when he demanded that Apple maintain 100% control of the iPhone OS and features.

I admit ATT is getting a little obnoxious but it doesn't seem Verizon has changed it's tune in regard to letting Apple retain control of the iPhone features and downloads. Jobs acknowledged having the iPhone on more than one network would be good. I have no idea if Apple is negotiating or if Sprint or Verizon care too.

 

[essinger]

Because the folks that run AT&T are not incompetent !! It is their network and they bare the costs of unplanned for events. I sincerely doubt Apple offered to cover the costs of that price guarantee with their $40B war chest. So why would a corporation agree to cover the costs incurred but a pseudo promise sales pitch made by another company?

Notice I said why would Apple not do it. Why AT&T wouldn't is obvious. Apple is the real source of incompetence here.

 

[Fiction87]

So the reason I would buy a 3G ipad is to take it out and about and use it on the go, for which I would need a data plan, and would smartly get the unlimited plan. That's out of the picture now making the 3g pad for many useless so that leaves ipad Wifi.

But, when at home, one of the few places with a decent wifi connection, I can just use my macbook, so that makes the wifi ipad useless, which makes the ipad in general useless.

Also, the ipad isn't suddenly not in short supply just because some manage to get one and activate the unlimited plan before June 6th. What about everyone else?

 

[deconstruct60]

With this bait-and-switch I wonder if Apple will allow returns for full refunds?

There was no "bait" here. Nobody promised you the contract would be available forever. Folks read between the lines that was the case, but there was never said. Anyone who expects can terminate contract and then get exactly same terms later is not paying attention. That is not "bait and switch". That was always the downside of the limited time period of the contract. As soon as exit AT&T is not bound to keeping service/price constant ( they aren't anyway but even less so in that context). That is exactly why, in the general case, folks sign long time term price contracts to get stable terms. Folks want the long term stable terms without a contract. What????

 

[Maxington]

I plan to get the Wifi + 3G iPad and wanted the unlimited plan but didn't want to have it active every month. This change basically says you have to keep it active every month otherwise your down to 2GB. Sucks IMO.

AT&T trying to protect their over burdened data lines... Hopefully the time is nearing to see iPhone/iPad on another carrier in the US.

Competition can breed resolve.

 

[MadCow42]

Had my 3g iPad for about 3 weeks. Signed up for the unlimited plan right away, just to have it on the go. Guess I will not be cancelling it now.

WIN: AT&T. Game, set, match.

I bought the 3G iPad so that I could enable the unlimited plan when I travel, and cancel it when I'm not. I can't do that now... they ****ed me over. I'm pissed.

MadCow.

 

[essinger]

There was no "bait" here. Nobody promised you the contract would be available forever.

Since Apple sold the device advertising the rate as a reason to buy it, Apple is under obligation to make sure that rate is available for a reasonable amount of time; not forever, but reasonable. Two months ain't reasonable.

 

[aristokrat]

Jobs had no cards when he was shopping the original iPhone around. Verizon told him flatly, no, when he demanded that Apple maintain 100% control of the iPhone OS and features.

I admit ATT is getting a little obnoxious but it doesn't seem Verizon has changed it's tune in regard to letting Apple retain control of the iPhone features and downloads. Jobs acknowledged having the iPhone on more than one network would be good. I have no idea if Apple is negotiating or if Sprint or Verizon care too.

You can't forget that a major part of Verizon's business model is riddling phones with tons of VCast buttons and other internet connect things, so that they can charge users $3 a pop for accidental connections. Relinquishing control of those features would cost VZW millions of dollars. Additionally, they've built their network into its own service with these types of applications, and I'm not sure Apple cares to support these honeypots. Apple is all about the user experience, whereas VZW might actually prefer a poor interface because it increases the likelihood of people selecting the money buttons.

 

[Chupa Chupa]

Actually they don't. Those folks were (or were planning to be ) hogs before. They are still hogs. They have just self identified themselves earlier than they would have. Anyone who is not planning to be hog will switch to the new plan because it saves them money . AT&T lowers the costs for 90+% of the users and have hundreds of posts about how this is a bad, evil, vile move. Surreal.

Do you work for the ATT Propaganda Ministry? What you are saying is marketing gobbledegook. Either you work for ATT or you've been brainwashed.

I am not a bandwidth hog. I have a 3G and have not used 1kb of 3G data since I've activated on April 30. I've been 100% WiFi. However, I know when I go to the beach in July I will be using 3G. That was going to be the first time I flipped the 3G switch on and then 30 days later I'd turn it off until the next time I needed 3G.

ATT changed the equation though. Now I'll turn on 3G on Sunday, a month earlier than anticipated. Since I'm paying for the 3G service I'm damn well going to use it. I'll become a bandwidth hog, not because that is who I am, but that is who ATT made me become by forcing me to continually buy data I don't really want.

Now if ATT said that I could "grandfather" into the unlimited plan w/o having to re-up every month I would not re-up every month. I'd use the 3G when I needed it, and only then. A lot less bandwidth used, and isn't that what ATT's goal is? That isn't the case though. So 3G wasting will now be a way of life until I can establish I'd never need more than 2GB in any given 30 days. My guess is I'm pretty typical. The $15 plan is a joke. That is about what I use on my iPhone -- but I don't watch movies on my phone. That is the difference.

 

[DonLand]

they should keep the 30.00 unlimited for current owners as of june 7, and allow them to subscribe and cancel as was advertised, not forcing you to a 2GB plan when re-subscribing.

They should also take that 15.00 plan, and up the data to 1GB, and then take the 2GB and lower to 20.00, then add a 5GB plan for 30.00 for the upper tier.

This is the best idea/plan yet. Maybe they should add in a real unlimited plan for $40 or $45. No one would complain with this. AT&T are you listening? If you run over with the 1GB plan they could tack on $10 for an extra GB etc. The current low 200MB is simply a joke. AT&T knows most everyone will need to go for the 2GB plan. Oh and while we're at it, they throw in the pleasure of tethering for ONLY $20. Let me get this straight. I'm paying for 2GB of data, so why do I have to pay double again for the right to tether? Like I've read, Verizon has free tethering with some of their Palm phones. You can get a Palm with unlimited data usage and 5GB of tethering usage for $30/month. Apple needs to separate from AT&T or at least get some competition going. I was going to buy a 3G iPad, but not any longer. I wanted the ability to turn it on/off on a month by month basis with lots of data available. Not so with the new plans.

 

[deconstruct60]

Apple is the real source of incompetence here.

Apple doesn't have a 3G service network or even resell 3G service. Apple can't secure diddly because they don't provide it. The only way Apple could get a guarantee is if they offered to cover the costs. No way Apple was going to put their money into that. Subsidizing bandwidth hogs using their devices for years ? Apple's lawyers wouldn't let them sign something like that either. Just as AT&T's lawyers wouldn't let them take all the risk.


Apple is likely a contributing source of the problem though. Their projections of 3G usage were off (unless delaying delivering was planned). AT&T would likely depend upon Apple for help in forecasting the number of units sold. Since AT&T didn't have units long term, they also would need usage numbers from Apple. Even if Apple gave them numbers those numbers were whacked because there were extremely few apps because practically no developers had them. In short, if this hadn't rolled out as project where developers and testers got this device very late in the deployment process there should have been better numbers upon which to estimate utilization.

That's not quite incompentent though. Hardly anyone talks about how the iPhone was initially way overpriced now. Same thing for iPad. Much whining and bitching now, but 2-3 years from now there will be folks saying that Jobs was a god and completely omniscient at the launch of the iPad.

 

[Fiction87]

Since Apple sold the device advertising the rate as a reason to buy it, Apple is under obligation to make sure that rate is available for a reasonable amount of time; not forever, but reasonable. Two months ain't reasonable.

You mean AT&T right? As much say as I'm sure Apple has in the daa rates and options, at the end of the day they're still just Apple. Until Apple decides to offer their own data plans, AT&T is to blame for this one.

 

[tasset]

Do you work for the ATT Propaganda Ministry? What you are saying is marketing gobbledegook. Either you work for ATT or you've been brainwashed.

I am not a bandwidth hog. I have a 3G and have not used 1kb of 3G data since I've activated on April 30. I've been 100% WiFi. However, I know when I go to the beach in July I will be using 3G. That was going to be the first time I flipped the 3G switch on and then 30 days later I'd turn it off until the next time I needed 3G.

ATT changed the equation though. Now I'll turn on 3G on Sunday, a month earlier than anticipated. Since I'm paying for the 3G service I'm damn well going to use it. I'll become a bandwidth hog, not because that is who I am, but that is who ATT made me become by forcing me to continually buy data I don't really want.

Now if ATT said that I could "grandfather" into the unlimited plan w/o having to re-up every month I would not re-up every month. I'd use the 3G when I needed it, and only then. A lot less bandwidth used, and isn't that what ATT's goal is? That isn't the case though. So 3G wasting will now be a way of life until I can establish I'd never need more than 2GB in any given 30 days. My guess is I'm pretty typical. The $15 plan is a joke. That is about what I use on my iPhone -- but I don't watch movies on my phone. That is the difference.

+1 assuming I keep the 3G iPad. Just above someone posted 2 months is NOT reasonable which is the point I was making. I knew down the road AT&T would pull it, but not in less than 2 months.