AT&T Mobility CEO: Family data plan coming soon

Discussion in 'iPhone' started by mattwallace24, May 8, 2012.

  1. tigres macrumors 68040


    Aug 31, 2007
    Land of the Free-Waiting for Term Limits
  2. lord patton macrumors 65816

    lord patton

    Jun 6, 2005
    I pay $15 for my iphone's 200 MB, $15 for my wife's iPhone's 200 MB, and $30 for the wife's iPad's 3GB, of which she uses less than a gig.

    So $50 for 2GB would be a huge improvement for us! You can see why AT&T wouldn't want to do it, though.

    This is great news. Hopefully I can stop using Opera mini browser with all pics disabled!
  3. Small White Car macrumors G4

    Small White Car

    Aug 29, 2006
    Washington DC

    I usually use 3 GB and my wife usually uses 1 GB. It drives me crazy that I'm trying very hard to stay under 3 GB when I'm paying for 2 GB that go un-used ever month. Maddening.

    And, AT&T, if you let me put an iPad in there I can promise you I'll gladly spend even more money on data than I do now. I've never paid for iPad data because it feels like such overkill for what I'd use. But if it's all part of the same pool I'd certainly start using an iPad on cellular more.
  4. jbennardo macrumors 6502a


    Jun 16, 2009
    Then, coming soon after this...

    "AT&T CEO says offering family data plans was his only regret"
  5. dylanursula macrumors 6502

    Jun 27, 2010
  6. Ramonn macrumors member

    Apr 18, 2012
    I didn't read that news on that link but regardless, **** AT&T.

    I had so much ******** from them and gave me so much hassle with my unlocking process.

    **** them regardless. Lucky I'm here in U.K. with Vodafone and not with Arsehole&TiTs
  7. lord patton macrumors 65816

    lord patton

    Jun 6, 2005
  8. mattwallace24 thread starter macrumors regular

    Nov 25, 2010
  9. aneftp macrumors 601

    Jul 28, 2007
    Right now there are about 50% of the USA population ATT and other carriers desperately want to convert to higher paying smartphone data customer.

    The biggest barrier to smartphone adoption is clearly "data" plans.

    So ATT and Verizon have to come up with a price point for family data that is profitable and at the same time attracts "value" to convert those remaining dumb phone customers to smartphone data users.

    And there lies the big problem. If ATT can convince users to get a Lumia 900 which they cleary subsidize much less than the $400 or so for the iPhone, than they can attract users with a cheaper family data plan. However, if 70% plus of their user base all get the iPhone (this data is true...70% of ATT customers get the iPhone). If that's the worst case, than ATT's got huge problems trying to maintain profit margins.

    And that's the key with carriers, maintaining profit margin and even trying to grown them. Right now, profit margains are decreasing. Sure they are still making billions. But they want ot make more. It's just simple business 101.

    Now lets do the math.

    Right now, if a family plan consists of 5 lines (say 3 iPhone $30 lines) and 2 dumb lines which have no data. That line will run (69.99 700 minutes with rollover, plus $30 text, plus data ($30X3). The montly bill is $210 before taxes/discounts. That averages out to $42 per line

    Now, if the family plan consists of 5 smartphone lines. What price point is profitable to beat that $42/line currently. How does ATT convert those 2 dumbphone into smartphone lines?

    Remember a dumbphone, ATT might only subsidize about $100-150 for a flip phone. But an iPhone will cost ATT $400 in subsidies. So the subsidies for getting those 2 extra smartphone lines ends up costing ATT $300 extra per line.

    So ATT not only has to try to maintain revenue, but the revenue needs to make up for the additional $600 it costs ATT to convert those two remaining iPhone lines into data lines.

    Honestly, the only way this will work is ATT starts mandating DATA (like T-mobile USA does). That means if you buy a subsidized iPhone on contract, you cannot just switch to a dumb phone and sell the phone or swap the new phone into another line. That line you just got upgraded must be forced into a data plan for 24 months.

    And I think that's what ATT will be forced to do. They may try to just say if you buy phone at full price, than no data plan is needed. But if you try to buy phone at subsidized pricing, than 24 month contract includes data.

    Than they can tie all the required data into a family data plan and make it work.

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