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

[MacRumors]

Jim Cramer/RealMoney.com has notes from AT&T regarding their plans for the iPhone. His column suggests that AT&T will be using the iPhone to aggressively target customers and implies that they will provide significant discounts in service:

Now, AT&T's all about market share, and if you read between the lines, I think you see a strategy coming where the device's $500 price point is preserved but the service contract is greatly reduced. I think that AT&T -- and not Apple -- is the key to this next leg, and CEO Stan Sigman can make it happen.

A recap of the same article outright claims that AT&T/Cingular will be "giving away its service for a year and a half to those customers who buy the phone".

[ digg this ]

 

[arn]

strange that no other reports of this are out there. I would expect this was truly "implied" and not outright said. If anyone has more details on what AT&T said in their earnings call, let me know.

arn

 

[whooleytoo]

Now THIS is revolutionary!

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

 

[philbeeney]

Still doesn't help anybody else outside of the US though.

I can't wait for the iPhone to come to Canada.

 

[tkidBOSTON]

Now THIS is revolutionary!

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

Agreed!

I think this would turn many of the "price point is a deal breaker" people into "price point is a deal maker" people.

I know I wouldn't hesitate to sign up for this.

 

[BillyShears]

Still doesn't help anybody else outside of the US though.

I can't wait for the iPhone to come to Canada.

According to this post, it is due in Canada (with Rogers) some time between September and December of this year. He also claims Apple won't let Rogers subsidize the cost of the phone (sounds like what might be happening with Cingular?), so maybe Rogers will have a similar plan with a certain number of free months.

 

[noverflow]

If that was the case, I would buy the phone in a heartbeat. No question about it. Personally I think this is simply false though. Even at $50/m ($900 over 18 months) you SAVE $400 by getting the phone. It would be stupid not to get the phone. (assuming you can pay the $500 up front)

 

[arn]

Wirelessly posted (Mozilla/4.0 (compatible; MSIE 6.0; Windows 98; PalmSource/Palm-D052; Blazer/4.5) 16;320x320)

maybe its only basic serice

 

[wwooden]

I don't get cingular here, but if I did and I was going to get the iPhone, I would have been extremely happy if said that if you get the iPhone, just pay for a regular service plan and the data plan is free. I have a hard time believing that they will give free service for a year and a half, I feel it will be more of what has already be speculated: that they will have a special all inclusive plan for the iPhone at a much cheaper price than buying everything individually.

 

[Chundles]

Wirelessly posted (Mozilla/4.0 (compatible; MSIE 6.0; Windows 98; PalmSource/Palm-D052; Blazer/4.5) 16;320x320)

maybe its only basic serice

Show off.

Wonder how this is going to translate down here where all our providers are GSM and the providers jump through the hoops to sell the cool phones?

 

[dernhelm]

If that was the case, I would buy the phone in a heartbeat. No question about it. Personally I think this is simply false though. Even at $50/m ($900 over 18 months) you SAVE $400 by getting the phone. It would be stupid not to get the phone. (assuming you can pay the $500 up front)

Yeah, it makes no sense. This guy is either off his rock, or he misinterpreted something he heard from some "insider" at the company.

If it were true. the only reason not to get the phone would either be the upfront cost, or the fact that you simply don't need a phone in the first place. AT&T can't go around handing out $400 to anyone needing cellphone service over the next 18 months.

 

[Darkroom]

Still doesn't help anybody else outside of the US though.

I can't wait for the iPhone to come to Canada.

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.

 

[MacVault]

Wow!

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!

 

[abrooks]

Why don't they just go one step further and do what we do over here in the UK. Pay for the contract monthly (usually 12 months) and get the phone free. I would expect nothing else from my O2 contract, I expect the most expensive phone they have for free.

 

[MacVault]

Why don't they just go one step further and do what we do over here in the UK. Pay for the contract monthly (usually 12 months) and get the phone free. I would expect nothing else from my O2 contract, I expect the most expensive phone they have for free.

Yea, that's what I would rather see too. I HATE cellphone contracts! They are from HELL!

 

[Max Payne]

Why don't they just go one step further and do what we do over here in the UK. Pay for the contract monthly (usually 12 months) and get the phone free. I would expect nothing else from my O2 contract, I expect the most expensive phone they have for free.

I doubt it, except if you are going to take the most expensive tariff. I have been an O2 customer for more than 5 years and I only got a free mobile once.

Nokia N91 -----------------> Free
Nokia N80 -----------------> £70 with £10 discount on monthly tariff.
O2 XDA II -----------------> £130 with NO discount.
Nokia 8800 ----------------> £130 with NO discount.
Nokia 8310 ----------------> £50 with NO discount.

 

[bokdol]

doesn't phone companies take up alot of the cost of phones so they can make people get 2 year contracts. i mean a razer retail for 300 dollars but you get it free with like a 2 year service i think. maybe this will bring the cost of service down.

 

[jackc]

I figure by the time I get out of my Sprint contract, the iPhone will be a few hundred dollars cheaper, so I'm good to go.

 

[Jerry Spoon]

doesn't phone companies take up alot of the cost of phones so they can make people get 2 year contracts. i mean a razer retail for 300 dollars but you get it free with like a 2 year service i think. maybe this will bring the cost of service down.

Absolutely. And you know how Apple hates to discount their products, so it makes sense that the only other thing the service provider can discount is the cost of their service. That being said, I can't imagine it would be 18 months of free service. Maybe 6 months. Even with that amount, I'd definitely give the iPhone a second thought.

 

[Americanloti]

Yea, that's what I would rather see too. I HATE cellphone contracts! They are from HELL!

For me the best option would be to sell the phone unlocked at the Apple Store. Even at 500 euro I would buy it in a nanosecond, and use the Sim Card I already have (which is prepaid). I really hope they'll go this way in Italy since the market is completely different than US.

 

[Max Payne]

I prefer paying things in advance. This was I wont be worried about high monthly bills. If this is adopted in the UK, I'll take one.

 

[Murty]

Shock

I doubt it, except if you are going to take the most expensive tariff. I have been an O2 customer for more than 5 years and I only got a free mobile once.

Nokia N91 -----------------> Free
Nokia N80 -----------------> £70 with £10 discount on monthly tariff.
O2 XDA II -----------------> £130 with NO discount.
Nokia 8800 ----------------> £130 with NO discount.
Nokia 8310 ----------------> £50 with NO discount.

Sorry for the off topic comment:

That's the first time I've been on one of these popular Mac rumour forums and noticed someone actually located near me! Max, live near Broadgate park, just down the road from you.

As for the iPhone, hoping Orange will carry it here and offer some kind of discount. Knowing our luck in the UK, Apple will charge £599 for it! Also, hoping they offer a standard SMS thing, allowing one off texts, rather than always grouping by recipient into an iChat like interface.

Fingers crossed...

 

[yg17]

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

 

[kwajo.com]

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 afraid you're going to be disappointed, it's going to be Rogers. The iPhone is GSM and the only carrier of that kind in Canada is Rogers (and Fido which they now own).

Also, Quebec is not the East of Canada, we are

 

[aricher]

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

I'm not sure how Cingular's service is in St. Louis but here in Chicago it's been flawless. I've had no problems with the network anywhere I've gone in the nation and have had no problems using it in The Netherlands, France, Italy and Germany as well. I honestly can't believe there are so many Cingular haters out there.