More Details on AT&T's Data Plan Changes for iPhone and iPad

[ks-man]

I'm a bit surprised that AT&T didn't handle a better tier system from the PR point-of-view. As AT&T as well as many people from this thread have pointed out these new plans are actually beneficial to most customers. The main concern is people are losing their unlimited data (even though they don't need it). I also think that people agree with the idea that those who hog the bandwidth the most should pay for it (as long as they aren't considered the ones who are overusers).

Consider the following tiers:

200MB - $15
1GB - $20
2GB - $25
5GB - $40
10GB - $70
Unlimited - $100

This basically dissuades most abusers from using too much data (since the unlimited is excessive). It is beneficial to the lower tiers and likely nets AT&T more money then their current proposed tiers without the negative PR. Also if they automatically bumped each person up to the next tier (no overage charges). Sure people would whine if they use 2.5GB and bumped up $15, but the point is as AT&T said that 98% use less than 2GB.

The main thing I don't like of the new plan is that the bulk of the people are going to be in the 200MB-2GB range. It doesn't make sense to charge an extra $15 for only 200MB extra data to the lowest users. I realize they are trying to get most people into the 2GB plan, but if I sign up for the 200MB plan and go over, give me the full 2GB. If you want to charge me a $5 penalty b/c I took the chance of going under I would be ok with that. Charge me $30 for 2GB but not for 400MB. My average month is about 150-200MB but I do occasionally go higher and could see myself at 600-700MB in a given month. Now I'm forced to go with the higher $25 plan just for those outlier months. Yes it will save me $5 from what I currently pay, but I can't ignore that I should be in a lower tier.

This is why I say it is a PR issue rather than a corporate greed issue. Making a few small changes leaves the customers satisfied rather than fuming (as the tone of this forum illustrates how many customers currently feel).

-------
Just another thought about tethering, why is tethering an all or none charge? Vary the charge in the tiers as well. Charge a lot more to tether a high data rate (or unlimited plan) and only a minimal charge for the lower plans. I don't think it unreasonable to charge somebody $50-75 or more to tether an iphone with an unlimited data plan if it meant only charging $5-10 to tether an iphone on a 200MB or 1GB plan.

 

[jbuck777]

There was never a cap on the iPhone data plan. Because if there was they would have called me and warned be about using GB's of data. And No i did not JB my iphone and use my-wi like some have.

actually there IS a 5GB soft cap. Doesnt mean you cant go further...hence soft cap. But after 5GB ATT is likely to throttle your connection, or contact you to see what the heck your doing thats taking up so much data.

 

[iansilv]

The representative noted, however, that AT&T may offer "new desirable plans" alongside the next-generation iPhone, although the comment appears to be more of general statement than a specific disclosure of the company's plans.

WHOA! WHOA! WHOA! WHOA! WHOA! WHOA! WHOA! WHOA! WHOA! WHOA! WHOA! WHOA! WHOA! WHOA! WHOA! WHOA! WHOA! WHOA! WHOA! WHOA! WHOA! WHOA! WHOA! WHOA! WHOA! WHOA! WHOA! WHOA! WHOA! WHOA! WHOA! WHOA! WHOA! WHOA! WHOA! WHOA! WHOA! WHOA! WHOA! WHOA! WHOA! WHOA! WHOA! WHOA! WHOA! WHOA! WHOA! WHOA! WHOA! WHOA! WHOA! WHOA! WHOA! WHOA! WHOA! WHOA! WHOA! WHOA! WHOA! WHOA! WHOA! WHOA! WHOA! WHOA! WHOA! WHOA! WHOA! WHOA! WHOA! WHOA! WHOA! WHOA! WHOA! WHOA! WHOA! WHOA! WHOA! WHOA! WHOA! WHOA! WHOA!

There's gonna be a new iPhone? Was this- was this on TV?!?

 

[jbuck777]

Because in the case of ATT it is. Dropped calls, 20 dollar texting rape fees. Good choice of carrier, Jobs. You really care about your consumers.

You think he CHOSE AT&T?? Doubtful. Apple certainly went around to all the carriers, and explained what they wanted out of them, and AT&T was the only one willing to bite and flex their policies around without ever seeing the phone until it was officially announced by Apple.

You know as much as I do that Jobs is pissed about AT&T's latest actions, as are most of the people here on MacRumors (AT&T doesnt apply to me...Rogers).

 

[jbuck777]

Sure. But unless they've ever chosen to exercise such an option, there is no "limit."

No one said their was a LIMIT....its a soft cap. Meaning, after 5GB they reserve the right to charge extra, or throttle your connection way down.

 

[dukebound85]

No one said their was a LIMIT....its a soft cap. Meaning, after 5GB they reserve the right to charge extra, or throttle your connection way down.

Wrong. There is no soft cap for the iphone

For 3g laptop cards yes, but there is NO documentation of one concerning the iphone

 

[jbuck777]

Wrong. There is no soft cap for the iphone

For 3g laptop cards yes, but there is NO documentation of one concerning the iphone

http://www.iphonematters.com/article/insanity_att_imposing_5gb_soft_cap_for_data_781/

 

[diegogalban]

To compare:

In Spain, we only have one carrier that has iPhone. The data plans are the following:

Movistar:
(Thethering allowed at no extra cost)
15€ ($18.58) --> 200mb soft cap, after that 64kbps
25€ ($30.96) --> 1GB soft cap, after that 128kbps
39€ ($48.3) --> 3GB soft cap, after that 128kbps

Starting as soon as the new iPhone is on the market, all the major networks will have it with the following fares:

Vodafone:
(Doesn't allow thethering)
15€ ($18.58) --> unlimited, but may throttle down if there's congestion.

Orange:
(Thethering allowed at no extra cost)
12€ ($14.86) --> 300mb soft cap, after that 128kbps

Yoigo:
(Thethering allowed at no extra cost)
8€ ($9.91) --> 500mb soft cap, after that 64kbps.

All plans are marketed as unlimited, but have some limitations. I think is a fair approach and also (at least the new carriers offering the iPhone) seems cheaper than AT&T.

I have an unlocked 3GS with Yoigo, and my use of data is between 360 to 480 megs/month, so i'm paying $9.91 for all my data usage.

 

[dukebound85]

http://www.iphonematters.com/article/insanity_att_imposing_5gb_soft_cap_for_data_781/

Once again, there is nothing in the TOS or any formal documentation of such a cap relating to the iphone

 

[mickhyperion]

I really don't understand what people who use over 2GB per month are doing with their phones. I use mine like a fiend when I'm away from WiFi and I don't even hit 200MB per month. I use public transit so my commute is up to 3hrs per day and I'm using my phone constantly, plus I'm probably using it for another 2hrs around town in my free time... chatting on Beejive, texting, checking bus times, FaceBook, MacRumors, pictorial blogs, watching YouTube videos occasionally, emailing, using the Maps app, playing Words with Friends. I'm nonstop on it and I'm using a 1st gen phone on the Edge network!!

Have you guys that use that much cellular bandwidth ever heard of WiFi? Maybe some of these bandwidth intensive activities you're doing would be better handled on WiFi, not 3G or Edge. What's that you say? You don't have WiFi? You live in a cabin on top of a mountain that happens to get 3G coverage, but not WiFi. Well, I have some suggestions for you:

- Utilize the thousands of AT&T WiFi hotspots nationwide that are available to you for free with your AT&T service
- Go hang out at a friend's house that has WiFi
- Go to any Starbucks, Tully's, or just about any other coffee house that offers free WiFi
- Go to any McDonald's
- Go to any shopping mall
- Go hang out at an Apple Store
- Go to any public library... you can even sit in front of one in your car while they're closed and use it
- Google search Free Wifi and find any of the billion other hotspots available free to anyone
- Get off your phone and do some work while you're at work/school... your employer/teacher might even be impressed

What are you 2GB+ mega users doing on 3G, consuming all of that data in places where using WiFi is simply out of the question? Watching porn in a cave somewhere? Playing graphic intensive online games in a rowboat in the middle of a lake? Do you insist on downloading full length movies on 3G instead of WiFi? Why?

 

[jbuck777]

Once again, there is nothing in the TOS or any formal documentation of such a cap relating to the iphone

Taken from AT&T TOS:

If you are on a data plan that does not include a monthly MB/GB allowance and additional data usage rates, you agree that AT&T has the right to impose additional charges if you use more than 5 GB in a month; provided that, prior to the imposition of any additional charges, AT&T shall provide you with notice and you shall have the right to terminate your Service.

 

[SolRayz]

We are so drunk on entitlements in this country that we forget that AT&T os a FOR PROFIT company. Furthermore, if we want them to have the money to upgrade the network and roll-out new technologies (i.e. 4G), they MUST make profits. They said that 98% of AT&T customers do not even use 250 Mb.

Buy it or don't. But deal with it and stop complaining!

Sorry but I have to comment on this load of corporate bs from earlier. Capitalism only works with competition and consumer choice, and since the beginning AT&T was the sole legit provider and NOT by consumer choice. I'm so tired of hearing AT&T excuses for why they should NOT give us better services.

This is why sadly the iPhone is beginning to loose its luster...that is until open competition finally arrives for the iPhone.

 

[Digipimp]

I didnt like this at first and then I read it and thought about it. I have 2 iPhones for myself and my girlfriend and I use less than 200mb generally and she doesnt have wifi where she is most of the time so she uses about 1gig on her iPhone because she has absolutely no wifi access at home.

I didnt like it and then I realized I will save money with it since I can now go $15 data plan on my phone and $25 on hers down from the $30 we were paying for each previously. Now if AT&T would lower prices on their minute plans and get rid of the ridiculous price for texts I might go ahead and renew and grab a new iPhone next week.

 

[anthdci]

since im on o2 UK this doesnt apply to me, but it has made me check my bill's to see how much data i have been using. I was shocked that on average i use only 200mb with a max of 450mb once. I would say i am a pretty heavy user so have no idea how you guys are managing to get 2gb plus unless you are tethering

 

[mnemonix]

It's not about the legality it's a matter of trust.

Sure the amateur lawyers around here can make the case that there was no contract as such for unlimited, turn it on and off when you need it data plans for the iPad, and they're probably right technically speaking.

The problem for both Apple & AT&T, is that customers buying in to this advertised feature have had it removed mere weeks after its introduction. Legal or not, this is a huge failure of the trust put in both these companies by their customers on buying their expensive products and so they have every right to be upset.

Apple doesn't get off either, by virtue of the exclusive relationship with AT&T for their devices they either knew in advance, or were negligent in their management of the relationship if maintaining the trust of their customers was in the slightest bit important to them.

This is not about the legal, contract technicalities, a misplaced sense of entitlement, or even excessive use of bandwidth by a minority, it's simply about the trust a company, particularly one like Apple which is known for its fiercely loyal customers, deserves from its customers - which after this should be considerably less.

And don't go lecturing me about modern corporate business practice or the like. If at the end of the day it makes me, and enough other people, reconsider their purchases from Apple on the grounds of that trust, then it becomes a business problem for them in the end; we don't just buy products from companies, we base our buying choices on intangibles such as reputation, trust, service etc as well the physical object.

 

[marksman]

Sure the amateur lawyers around here can make the case that there was no contract as such for unlimited, turn it on and off when you need it data plans for the iPad, and they're probably right technically speaking.

The problem for both Apple & AT&T, is that customers buying in to this advertised feature have had it removed mere weeks after its introduction. Legal or not, this is a huge failure of the trust put in both these companies by their customers on buying their expensive products and so they have every right to be upset.

Apple doesn't get off either, by virtue of the exclusive relationship with AT&T for their devices they either knew in advance, or were negligent in their management of the relationship if maintaining the trust of their customers was in the slightest bit important to them.

This is not about the legal, contract technicalities, a misplaced sense of entitlement, or even excessive use of bandwidth by a minority, it's simply about the trust a company, particularly one like Apple which is known for its fiercely loyal customers, deserves from its customers.

the problem is you can still buy access and turn it on and off.

Your problem is with the specific terms of the deal, and I think that is unfair. Does it suck they changed them so quickly yes. But when would be the appropriate time for them to be able to change them.

It would be different if in a month they said, you can only get 3g data by purchasing a 2 year contract. That would be changing the fundamental offering.

Changing the price/volume is not the same thing. Many products have required some kind of additional service to be used with them, and I have never seen a single case where the providers were held to having to guarantee some kind of price on the product. It is not how it works and not how it ever works.

Again it sucks because they did it so quickly.. but it is what it is... and when you buy something that requires an additional subscription with no contract, the reality is it could change at any time. Even if they changed it 6 months from now or 2 years from now they would have the same problem and issue... and I think it is entirely unreasonable to take a stand that they are not allowed to change their pricing/plan on something like this.

If you don't like it, take it back or sell it I guess.. don't know what else to tell you. However, just so people know, available plans and pricing are likely to change AGAIN for the iPad in the future. These new terms are not set in stone for all time. So realize if you buy an iPad a year from now and they change it so you get 2 gigs at $30 or 5 gigs at $50 you have been forewarned.

 

[mnemonix]

@Marksman

See, I can't technically disagree with a thing you say, but you do simply back me up when you say it sucks they did it so quickly. Mere weeks after the introduction of the iPad ? As I said, this represents a massive betrayal of the trust put in them, and should be seen as such, particularly by Apples loyal customers no matter how it's justified in legal or pragmatic terms. And of course my problem is with the terms! Those terms were a feature last week and lasted little longer than a few weeks!

Contrary to what you say I wouldn't have felt the same way had they done this a year later and I don't believe it's unreasonable for the terms of such services to change. Nor do I feel it would be the 'same' - if Apple cared they might have negotiated a fixed period with AT&T, say 1 year, for this to be in effect and said from the outset that it may be reconsidered after that year, but no one could reasonably expect this outcome, not the most diligent consumer even. Introducing a new product and touting as a feature something that is removed mere weeks later is entirely a justifiable reason for withdrawing ones trust in a company. I don't honestly think you can argue against that, and even within capitalism, trust has commercial value.

Yes forewarned is correct, I've not previously had to feel this way about Apple, and the fact that I do now can't be good for them either.

 

[ValSalva]

Wifi

It's time to become intimately knowledgeable with all the local Wifi hotspots. AT&T clearly can't handle the iPhone/iPad increased data usage. And with the specter of video calls on the new iPhone looming they want us, are forcing us, to use Wifi for most data intensive uses of these devices.

 

[normwood]

Upon doing more research last night, based om our typical iPhone data usage, both my wife and can....and will....drop down to the $15/month iPhone data plans. This frees up $30 that will pay for the unlimited plan on my iPad 3G.

I look at this like I am getting data on my iPad basically for FREE.

In my situation, the new plans are AWESOME!

Steve

 

[SteveSparks]

Try reading instead of jumping to conclusions. Current iPad owners that purchased the $30 per month unlimited plan can continue with that plan. Here is a link: http://www.engadget.com/2010/06/02/atandt-makes-sweeping-changes-to-data-plans-iphone-tethering-comi

But if you cancel you lose the unlimited plan. That was not what I was sold.

 

[tuftywhite]

US Rip Off

People in the US are ripped off by your service providers.

In the UK we don't have to pay for incoming texts and only have to pay part of the fee for incoming calls from abroad. All internal UK incoming calls are free.

My iPhone plan is £35 a month with gives me 600 minutes (all outgoing) 500 texts (all outgoing) and unlimited data via 3G and free access to chargeable wifi.

I don't know why you would sign up to a deal which charges you for unsolicited texts and calls.

 

[bobpolka]

What bothers me about this new fee schedule... If you go to the Apple and also the At and T website and click on the service part it still has the older pricing. Apple is always good with updating its website. It would be good customer service to just mention these new changes on their website?

 

[chairguru22]

for most people, they won't even go near the 2gb limit...

 

[TraceyS/FL]

Have you guys that use that much cellular bandwidth ever heard of WiFi? Maybe some of these bandwidth intensive activities you're doing would be better handled on WiFi, not 3G or Edge. What's that you say? You don't have WiFi? You live in a cabin on top of a mountain that happens to get 3G coverage, but not WiFi. Well, I have some suggestions for you:

- Utilize the thousands of AT&T WiFi hotspots nationwide that are available to you for free with your AT&T service
- Go hang out at a friend's house that has WiFi
- Go to any Starbucks, Tully's, or just about any other coffee house that offers free WiFi
- Go to any McDonald's
- Go to any shopping mall
- Go hang out at an Apple Store
- Go to any public library... you can even sit in front of one in your car while they're closed and use it
- Google search Free Wifi and find any of the billion other hotspots available free to anyone
- Get off your phone and do some work while you're at work/school... your employer/teacher might even be impressed

What are you 2GB+ mega users doing on 3G, consuming all of that data in places where using WiFi is simply out of the question? Watching porn in a cave somewhere? Playing graphic intensive online games in a rowboat in the middle of a lake? Do you insist on downloading full length movies on 3G instead of WiFi? Why?

Well that is lovely. So while I sit being the responsible parent for three hours a week at the speech therapists office, you think I should really just be dropping my kids off and bolting for mcd's?

No thank you.

Or when I'm at Civil Air Patrol giving my time to help the kids make more of themselves, For three hours a night on Tuesdays, I'm supposed to not use it for that work? Or let them do some classes on it... Because most of them don't have computers at home....

Or when I have to unexpectedly take 2 kids with me to a convention the third child was working and it is too late to register them for the kids program, I'm not supposed to let them watch netflix kids programming in the 10 hours they had to sit quietly in a corner of the room and color and such?

I bought this device on the premise of unlimited. I had no idea what my real world usage would be, and I don't like having to think about it. I just want to be able to do what I need to do on the device I bought for the purpose. And sign up when I need it as promised....

I swear, really, I'd rather stay home than use the free wifi in the places you list. Oh and my library, where I'm at an hour a week for the kids art class, the wifi barely reaches inside. In fact the art classroom/conference room doesn't get signal at all.

There isn't a plethora of free wifi in all places. I don't have it anywhere I go and use my iPad.

 

[goosnarrggh]

Taken from AT&T TOS:

If you are on a data plan that does not include a monthly megabyte allowance and additional data usage rates, the parties agree that AT&T has the right to impose additional charges if you use more than 5 GB in a month. Prior to the imposition of any additional charges, AT&T shall provide you with notice and you shall have the right to terminate your service.

The text in your quote is included in 2 places in AT&T's TOS:
1) The DataConnect plans. These plans are aimed at laptop and personal computer users.
2) Smartphone/BlackBerry Plans with Tethering. These terms explicitly only refer to plans that have tethering activated.

The text in your quote is most notably not present in the portion of AT&T's TOS that lies in between these two sections, where smartphone plans without tethering are described. Hence it is not applicable to non-tethering smatphone plans.