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AT&T's Bet on the iPhone

AT&T's Bet on the iPhone
Interview with ATT Wireless CEO
http://online.wsj.com/article/SB121305706681259335.html?mod=googlenews_wsj

WSJ: You're already planning the next upgrade to a fourth-generation broadband technology called LTE. What's the "killer application" you envision running on that super-fast network?

Mr. de la Vega: We have been in search of a killer application in broadband forever -- and there is no one killer app. This is about making our networks faster, better and cheaper, so consumers will be able to use data services more without running up a huge bill. A good example of where you'll see the difference is streaming video, which is a high bandwidth service to put on a wireless network.

We'll see about that.
 
It sounds like us UK guys have got a much better deal than the US, which makes a change ;)

Indeed, free upgrades, 18 month contracts, the chance to upgrade to the 16gig model for £59 (for me anyway as I pay £45 a month), PAYG deals, 1 month SIM deals so you can cancel after 30 days. Its about time we got a decent deal in the UK on Apple products, in fact if you get the cheapest tariff and buy the 16gig iPhone I THINK its cheaper than the US as the US price of $299 doens't include taxes, our price works out at a fiver over that but DOES include VAT.
 
-Pricing shown ($199 & $299) are for new two year agreements for new customers or QUALIFIED upgrading customers renewing. Unlike the 2G iPhone you cant just get this one and have your agreement automatically renewed if you arent already eligable (BUT i will say whenever you come into the stores we are fairly easygoing on over riding that, assuming you are atleast one year into your agreement).

So what are you saying, that we have to *qualify* to pay att more money and get a new phone? And how many iPhone owners are 1 year into their contract given the fact that the iphone was released in late June 2007? I for one, will not be one year into it on day one having purchased my iPhone in late July 2007.

Take this back to your bosses: If we're willing to pay you more money to use the new iPhone, then you should just sell it to us no questions asked (if we're already customers). You shouldn't have to check to make sure we're "good enough" to pay you more money. That's just *insulting*.

This whole thing stinks. I should be able to just walk in, shell out my money, and walk out with a new iPhone.

:mad: To Steve Jobs for essentially lying by omission to us when he said the price of the iPhone was going down.

:mad: To ATT for making iPhone users pay so much to use their phones.
 
dissapointment

well i guess i'll keep my 2G iPhone since I don't feel like being rape by ATT more than I have to. The software update will be good enough for me.

:mad:

PS: the phone looks pretty good LOL
 
So what are you saying, that we have to *qualify* to pay att more money and get a new phone? And how many iPhone owners are 1 year into their contract given the fact that the iphone was released in late June 2007? I for one, will not be one year into it on day one having purchased my iPhone in late July 2007.

Take this back to your bosses: If we're willing to pay you more money to use the new iPhone, then you should just sell it to us no questions asked (if we're already customers). You shouldn't have to check to make sure we're "good enough" to pay you more money. That's just *insulting*.

This whole thing stinks. I should be able to just walk in, shell out my money, and walk out with a new iPhone.

:mad: To Steve Jobs for essentially lying by omission to us when he said the price of the iPhone was going down.

:mad: To ATT for making iPhone users pay so much to use their phones.

Have you read the threads? The iPhone will be like any other Smart/PDA phone and be priced accordingly. Why should it be different? Why does AT&T owe us cheaper rates for a superior phone? I am confused?
 
Have you read the threads? The iPhone will be like any other Smart/PDA phone and be priced accordingly. Why should it be different? Why does AT&T owe us cheaper rates for a superior phone? I am confused?

Because no other smart phone that AT&T has could bring millions of new customers. Yes, it seems fair that we should pay the same for the same service, but as a collective whole, iPhone users represent a HUGE market for AT&T that no other phone gives them. Assuming no phones will be unlocked, AT&T is poised to get MILLIONS of new customers (and given the least expensive rate plan is around $1k/year, that's at least a billion dollars in extra revenue), likely away from Sprint/VZW/etc, so that's why our concerns should matter more than those of other smart phones...

Thinking analytically helps sometimes, bro.
 
Existing Customers

This may have already been answered here, aplogize if it was, but for existing iPhone customers that are paying $20 per month for data plan, can we get a 3G iPhone and keep the same data plan or are we forced to a $30 per month data plan. This may ultimately be the deciding factor for me in getting the iPhone 3G.

:D
 
Update: Arstechnica clarification

The way this announcement is worded on the MacRumors lead-in, it appears contracts will not be extended at all. What Arstechnica actually said is quoted below.

if you recently signed a 2-year contract (as I did, in January), you don't have to commit to two more years for a total of four. You only have to sign a brand new 2-year contract. In my case, that would make my total contract time 2 years and 6 months or so.

So the new plan replaces the former and lasts a full 2 years.

EDIT: Now I read on Electronista that current users purchasing a new iPhone will be "grandfathered". So many conflicting/unusually worded reports are coming out from different sources. AT&T just needs to put up a Web page that outlines new pricing for iPhone customers.

Both home and business users will require a phone plan that starts at $40 per month but which will share the same terms as for the 2G model, which includes at least 450 minutes of calling time, 5,000 evening and weekend minutes, 200 SMS text messages, and Visual Voicemail. All iPhone 2G users will be grandfathered and won't be required to pay more per month for as long as they choose to use the service, including past the end of their contract.
 
Have you read the threads? The iPhone will be like any other Smart/PDA phone and be priced accordingly. Why should it be different? Why does AT&T owe us cheaper rates for a superior phone? I am confused?

Jobs said it was a cheaper phone. By having a high data plan price, AT&T have made the total cost of ownership for the 2 years actually higher than the old phone.

Jobs also said it was 'thinner' - when it is 7.9% larger by volume.

Doug
 
I wonder if we'll be able to get the 3g now WITHOUT the data plan. That could be interesting.
 
Does anyone know anything about the family plans?

(I'm sorry if this was mentioned earlier but I'm not reading through 25 pages of forums)
 
$1,100 a year cost of ownership with a 2 year commitment? That's just insane. I'd love one, but there's just no way I'm that stupid. If I could hook it to my laptop for wireless connectivity, then maybe it would be worth it, but even then it would be a hard pill to swallow.
 
I sure hope you work somewhere where others are required make the 'hard' decisions.
See...if you were mature enough to handle a reasonable discussion, we'd each contribute our thinking to the discussion and expand the other person's view, add evidence, and arrive at a mutually agreeable conclusion.

But it's clear you are not capable of such a discussion. In the meantime, your personality speaks for itself. Especially if you insist that a 'hard' decision involves basic math.
 
That's the exact responce I expected from a caveman.
I'm sure you have a great job and that is why $10 made such a big difference... hahahahahhahahahahahahha.
Damn carebear.

It's not a $10 difference it's a $120 per year difference and $240 over the term of the contract difference.
 
Ugh... $200 cheaper AND $360 more expensive... PERFECT!

iPhone prices $200* cheaper!
(*not including $360 in new service fees)


I don't see why everyone is blaming this on AT&T... Seems to me that the real problem isn't just the price hike of the plans, it's that Steve Jobs announced that Apple wanted to recognise that cost was an impediment to iPhone ownership, so they were cutting the price by $200. --> Which sounded great and got us all excited.

Then we learn that although Steve said that he was "cutting the price by $200" he was actually RAISING the price by $160. An extra $360 in service fees over the life of the contract, plus taxes. That's the part that hurt.

We weren't expecting such a drastic price cut, so when he announced it it was fantastic, I know that I was thrilled, but then I became very weary when he was mum about the plan rates. Alas, sadly my fears were correct and the iPhone just got more expensive, and Steve & Apple's credibility took a hit. not sure if I'll buy now.

honestly - we all know of American phone companies to be nothing short of crooks, that's nothing new. But this was a lame move on Steve's part - a deliberate ploy to fool people who couldn't afford an iPhone into getting one when now they REALLY can't afford it. It's all in the small print... And this is not AT&T's fault - remember that Apple banks loads of cash from these service plans as well. I imagine this will only be gaining more press as it becomes clearer. I can see the headlines now...
 
The new iPhone is nice, but 3G and GPS really isn't that much of a compelling upgrade for me. I think the software update and subsequent apps will be enough for me.

I'm not really too keen on paying even more per month.
 
It's not a $10 difference it's a $120 per year difference and $240 over the term of the contract difference.

I am not exactly sure if you realize that this is life.
Some things you can afford and some you can't.
Whenever you can't you always go whining like a spoiled kid?

People! get a better job, eat less fast food, quit smoking or do whatever you can IF you really want it.
Stop bitching like 2 year olds that want a lollypop.

Nobody forces you to buy it NOR you are in anyway priviledged to get one.
If you can't afford it then it is not for you.

So ****ing simple.
 
I am not exactly sure if you realize that this is life.
Some things you can afford and some you can't.
Whenever you can't you always go whining like a spoiled kid?

People! get a better job, eat less fast food, quit smoking or do whatever you can IF you really want it.
Stop bitching like 2 year olds that want a lollypop.

Nobody forces you to buy it NOR you are in anyway priviledged to get one.
If you can't afford it then it is not for you.

So ****ing simple.

I'm pointing out something pretty simple which you seem unable to discuss without a tirade. That's pretty weak that you call upon insults to try and get your opinion across.

Remember, just as much as you're claiming "it's life" it's also "life" for people to voice their opinion on situations, especially when they see something the do not agree with, or in this case were flat out lied to.

If you choose to come at me again, take a deep breath and form a coherent opinion that's void of juvenile drivel and tantrums. That something you claim others are doing when voicing their opinions. Ironic isn't it?
 
If you can't afford it then it is not for you.

Exactly. The problem is that Steve essentially said: "We know that many consumers couldn't afford the iPhone so we lowered the price to put it within reach of more end-users." And then in the small print he actually RAISED the price... That's the issue here.

Free market sure, blah, blah, blah. The issue isn't with the price, but how it was falsely pitched to consumers.
 
Sales

I know this has been bought up before but this what I heard from an apple sales person today:

If you currently have an Apple iphone w/ a contract YOU WILL BE ELIGABLE TO UPGRADE to the 3G 8Gb for $199 or the 16GB for $299. If you DON'T HAVE an iphone but have ATT as your wireless provider you MIGHT NOT BE eligible for the upgrade due to your contract eligibility.
 
Exactly. The problem is that Steve essentially said: "We know that many consumers couldn't afford the iPhone so we lowered the price to put it within reach of more end-users." And then in the small print he actually RAISED the price... That's the issue here.

Free market sure, blah, blah, blah. The issue isn't with the price, but how it was falsely pitched to consumers.

Well it's that and then there's the flat out lie about it being thinner and stuff. Whit it isn't and thusly it's a flat out lie.
 
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