AT&T Smart Business Move

[rkdiddy]

I know we've heard the numerous rumors that AT&T's exclusivity agreement and whether or not another carrier will get the iPhone.

After reading the latest rumor from the China/Taiwanese manufacturer that says it will be producing a CDMA version of the iPhone and the recent events that have transpired over the last month or so regarding AT&T - it dawned on me. AT&T has brilliantly timed the end of their exclusivity agreement.

1. Offer early upgrades to loyal AT&T customers - appears to be the nice thing to do...so they can get the hot new iPhone 4. In reality, it locks the consumer into a new 2-year agreement.

2. Raise the ETF. Not consider a deal breaker when you feel AT&T is the only carrier that will have your beloved phone. However, increasing the ETF will ultimately deter current customers from leaving and switching carriers.

3. Tier the pricing of the data plans to allow a lower point of entry for those interested in getting an iPhone. It also helps make them more competitively priced when it comes to offer data.

While I would love to think AT&T is just trying to take care of the customers - it all boils down to business.

Given the above I believe we will see another carrier <cough cough Verizon> in the next few months.

This will be a good thing for us loyal Apple fans - competition is always good for the customer and in the long term will hopefully free up some of AT&T taxed data/voice network.

Just my $.02!

 

[jtara]

Not smart at all. Desperate.

 

[FastangV6]

Not smart at all. Desperate.

+1

They are running scared and doing everything they can think of to squeeze every last penny from the iPhone customers they have, as long as they can keep 'em.

My 8GB of data usage last month would've cost like $95 under one of the new, non-unlimited plans. They're about to make a mint off of people with a new iPhone 4 and the capped data plan overages, at least until the competition gets the iPhone.

 

[tigres]

OP, I believe this to be true as well. Don't think for a moment the upgrades were out of the kindness of their hearts; they were designed to lock in as many as possible.

It all adds up, and is a foregone conclusion the reign the kingdom iPhone is almost over.

I would like to see Verizon/T-mobile/Sprint, come in and spank the pants off AT&T's rates. Probably won't happen that way, but competition is drastically needed on this product- service wise that is.

 

[iphone1105]

+1

They are running scared and doing everything they can think of to squeeze every last penny from the iPhone customers they have, as long as they can keep 'em.

My 8GB of data usage last month would've cost like $95 under one of the new, non-unlimited plans. They're about to make a mint off of people with a new iPhone 4 and the capped data plan overages, at least until the competition gets the iPhone.

Yeah, except your 8gb of useage, is proabably 20x more than th eaverage users data useage. To even fathom using all that data on the phone is crazy in the first place, but you're not the norm. Most iPhone owners I know barely crack 400mb/month.

Also, you and the above guy say they're running scared, but last I heard, they still have exclusive rights to it, maybe november it will change, but that 5 months of potential purchases, thats alot of iPhone to be sold without worry. Further more, most AT&T users think they have great service, if it does open to Verizon, I know everyone in my area would keep at&t, because at&t is way better than Verizon where I live.

Good day all!

 

[cowsrus]

I can't wait for verizon to get the iPhone

I get great 3G and always have bars at my house, my school, and all around where I go
AT&T has never been a problem for me, but the second Verizon gets the iPhone, suddenly it will become a competition that we will all benefit from

I will go from enjoying my iPhone now, to seeing random cheaper plans available and other gimmicks to get people to go to AT&T and then I will also have the option to swap to verizon if AT&T ever does do something that I dont want to deal with, without having to give up my phone

I don't see why anybody would want AT&T to be the only American carrier with the iPhone

 

[FastangV6]

Yeah, except your 8gb of useage, is proabably 20x more than th eaverage users data useage. To even fathom using all that data on the phone is crazy in the first place, but you're not the norm. Most iPhone owners I know barely crack 400mb/month.

True. It all depends on what apps you use. If you stream 1-3 hours of video per weekday over 3G it's not hard to run up the data usage fast.

 

[AHDuke99]

Even streaming music doesn't rack up 8GB of data a month. That guy obviously is using MyWi or tethering and is using this cell plan as his home internet, which obviously isn't what is supposed to be happening. I really don't care if he is mad about it. I doubt he'd get away with usage like that on Verizon or any other carrier.

 

[oneteam]

I can't wait to see the iPhone available in every US carrier, I don't think AT&T's network is going to be able to handle it much longer.

 

[mytakeontech]

You know what, even if you sign the contract with ATT knowing that ETF is $325, it's not a big problem.

Think this way, if Verizon phone comes around October and if you really want to end ATT contract, simply sell your iPhone. I am sure your 32GB phone will sell for at least $500 (may be much more if unlocked by that time).

That will pay off the ETF (325 - $10 per month on contract = @175) and you may be able to buy Verizon phone without spending any money (At least 16GB).

I think this ETF is no big deal for iPhone owners!

I know we've heard the numerous rumors that AT&T's exclusivity agreement and whether or not another carrier will get the iPhone.

After reading the latest rumor from the China/Taiwanese manufacturer that says it will be producing a CDMA version of the iPhone and the recent events that have transpired over the last month or so regarding AT&T - it dawned on me. AT&T has brilliantly timed the end of their exclusivity agreement.

1. Offer early upgrades to loyal AT&T customers - appears to be the nice thing to do...so they can get the hot new iPhone 4. In reality, it locks the consumer into a new 2-year agreement.

2. Raise the ETF. Not consider a deal breaker when you feel AT&T is the only carrier that will have your beloved phone. However, increasing the ETF will ultimately deter current customers from leaving and switching carriers.

3. Tier the pricing of the data plans to allow a lower point of entry for those interested in getting an iPhone. It also helps make them more competitively priced when it comes to offer data.

While I would love to think AT&T is just trying to take care of the customers - it all boils down to business.

Given the above I believe we will see another carrier <cough cough Verizon> in the next few months.

This will be a good thing for us loyal Apple fans - competition is always good for the customer and in the long term will hopefully free up some of AT&T taxed data/voice network.

Just my $.02!