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

[Halopend]

I found it completely unbelievable when Rogers in Canada announced a $35 5gb monthly plan for the iPad since they charge twice as much for their 3G sticks. I thought "whoah that's almost as good as American pricing". The fact they they now BEAT American pricing is liable to make my head explode.

 

[alhedges]

There are two contracts at play here, and you are conflating them. There's the express contract that covers what happens in a 30-day increment. And there's the implied contract that covers what happens from increment-to-increment.

I'm not conflating them; I don't believe that there are two contracts.

Imagine you apply to be a McDonald's franchisee and are accepted. You pay McD $250,000, build a restaurant, buy equipment and ingredients. The express contract says either side can terminate at any time. Despite this, McDonalds cannot cancel the contract after a month. It would violate the implied covenant of good faith and fair dealing, and/or breach an implied contract.

AT&T already permits you to cancel with no penalty if the terms of the agreement are changed. I also believe that Apple should be required to accept the return of your iPad, or exchange it for a wifi iPad, your choice. But because of their deceptive/misleading advertising, not because of a contract theory.

Further, the service agreement is the weakest kind of contract - it's not bargained for, but is a "take it or leave it" contract provided by the sole U.S. provider of wlan service for the iPad. Courts often throw out arbitration clauses in this type of contract.

Yes, this occasionally happens. However, binding arbitration agreements are routinely enforced in credit card agreements, so I would assume that they would be generally enforced in this case as well. (Note that when arb agreements have been thrown out by the court, it often has less to do with the adhesive nature of the contract and more to do with the fact that the arbitration itself is not set up in such a way to provide an unbiased forum. IDK how AT&T's arb panels are required to be set up, although I would assume that they would have a neutral 3d party arbitrator.)

 

[kdarling]

The Motley Fool pointed out something today:

AT&T claims that 98% of its smartphone customers go through less than 2 gigs a month on average, but that metric smells fishy to me.

It's lumping email-centric Research In Motion (Nasdaq: RIMM) devices and cheaper smartphones into the mix.

I can guarantee you that more than 2% of AT&T's iPhone users are eating through more than two gigabytes of data month.

 

[yehudah72]

http://images.macrumors.com/article/2010/06/02/170355-att_original_iphone_unlimited.jpg[/img]

WOW!!! Feel sorry for the New iPhone 4G Buyers... think about it...

If we use the "Video Conference" feature HOW MANY KB or MB are we going to be consuming... this is why they must of changed the plans.


THAT IS CRAZY... we already pay way over many mobile phone companies for our Airtime, Text, and Web Services...


I remember having my first Cell Phone with 20 Free Minutes... that was expensive

We need to reach the Era where current prices drop... IT IS TIME that AT&T give us FULL UNLIMITED Services for $50.00-$75.00 Flat



Anyways... See you all on video conference soon

 

[Blorzoga]

Apple and AT&T can go f themselves

 

[View]

i'm the one that asked at&t about the 2g upgrade.

haha. i got on the front page of macrumors.com. sweeettt

i had no clue they would take a screenshot like that though.

anyway, i'm glad I get to keep the unlimited plan. With the inevitable video chat, netflix app, and eventual hulu app- it would have been a little too easy to jump over 2 gigs.

Thanks I've benefited from your post

 

[fmaxwell]

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

Well, I am on the unlimited plan this month. Next month, I am going to the $15 plan. When I go on a business trip, I will change back to the unlimited plan. If they don't let me, then you pay every cent of my bill in excess of the $29.99 cost of the unlimited plan. If I decide that I am going to rent movies or stream music over the 3G, you pay. Next time, you try reading, because what we were promised was the ability to switch between plans based on our monthly needs.

 

[3goldens]

Sorry if I missed someone asking this question but I wondered about the ipad unlimited grandfathering in part of this situation since there is no real contract and it's basically a month to month thing.

What happens in the event your ipad is replaced, or you eventually upgrade to a new version down the line, how does one assure continuation of the unlimited services on your new device? Is there a provision that assures this for those of us who will be grandfathered in?

 

[cmaier]

Sorry if I missed someone asking this question but I wondered about the ipad unlimited grandfathering in part of this situation since there is no real contract and it's basically a month to month thing.

What happens in the event your ipad is replaced, or you eventually upgrade to a new version down the line, how does one assure continuation of the unlimited services on your new device? Is there a provision that assures this for those of us who will be grandfathered in?

Essentially we are screwed. Perhaps putting the old sim in the new device would work, though.

 

[firewood]

Here's a Consumer Reports article with some actual stats on the percentage of smartphone and iPhone users who are under 200 MB and over 1 GB of data:

http://blogs.consumerreports.org/electronics/2010/02/iphone-data-usage-smart-phones-smartphones-blackberry-mb-network-att-carrier-istress.htm

The chart tops out a around 5% of users using over 1GB, so a smidgen less than half that number over 2GB is reasonable, which would round down to the reported 2%.

Interpolate, weight and integrate the curve, and you will find a small percentage of users (less than 20%) cause the vast majority of the data traffic (over 80%).

 

[DotCom2]

Here's a Consumer Reports article with some actual stats on the percentage of smartphone and iPhone users who are under 200 MB and over 1 GB of data:

http://blogs.consumerreports.org/electronics/2010/02/iphone-data-usage-smart-phones-smartphones-blackberry-mb-network-att-carrier-istress.htm

The chart tops out a around 5% of users using over 1GB, so a smidgen less than half that number over 2GB is reasonable, which would round down to the reported 2%.

Interpolate, weight and integrate the curve, and you will find a small percentage of users (less than 20%) cause the vast majority of the data traffic (over 80%).

That's smartphone data.
I wonder how that data relates to an iPad though?
I would think an iPad would consume a lot more data given it's purpose.

 

[3goldens]

Essentially we are screwed. Perhaps putting the old sim in the new device would work, though.

So we are not really granfathered in at all in the traditional sense. We are grandfathered in for the life of ones current edition ipad.

This is not the case with the iphone clearly and seems to me this policy is very deceiving and complete cows manure!

this was really a bait and switch for early adopters of the ipad.

 

[cmaier]

So we are not really granfathered in at all in the traditional sense. We are grandfathered in for the life of ones current edition ipad.

This is not the case with the iphone clearly and seems to me this policy is very deceiving and complete cows manure!

this was really a bait and switch for early adopters of the ipad.

Even with your existing device you are not truly grandfathered. We were promised the ability to skip a month and resume whenever we wanted. If yuh turn off your unlimited access, now you can never get it back.

I just saw on their facebook page that they confirmed the sim trick.

 

[chris975d]

People have mentioned the video conferencing several times (if it's even allowed over 3G and not wifi only), so one thing that I have wondered is what if Apple has asked AT&T to include unlimited video conferencing in the iPhone data plan, since it will be one of the stand-out features of the iPhone 4th gen? And as a compromise, AT&T told Apple that their network wouldn't be able to handle unlimited video chat PLUS unlimited data (non-video chat data), so they (AT&T) said that to allow unlimited video chat, they would HAVE to cap the other data usage at 2Gb, and grandfather the existing iPhone owners into their old plan so they don't revolt? This agreement would satisfy both Apple and AT&T, as Apple and Jobs still would get to tout their new video chat feature that I'm sure they are going to want to advertise heavily as being something that the competition really doesn't have at this point (except for the Evo), and AT&T doesn't have to worry with the possible situation of having all these iPhones with unlimited video chat (which would be data), PLUS unlimited other data (web browsing, app downloads, streaming, etc).

So in a nutshell, what I'm saying is what if we find out Monday that the 4th gen iPhone will have unlimited video chat on the new plans, but the data (non-video chat data) will be capped at the proposed caps? This may be why we haven't heard a peep out of Apple about this.

And if the above is true, then anyone upgrading to the 4th gen iPhone but grandfathering their old unlimited plan wouldn't get the video chat feature, since the feature code may be attached to the "new" iPhone plans. This might be how AT&T is going to try to "strongarm" all of us wanting to keep the old plan but get the new phone into going with one of the newer, capped plans.

 

[marksman]

Even with your existing device you are not truly grandfathered. We were promised the ability to skip a month and resume whenever we wanted. If yuh turn off your unlimited access, now you can never get it back.

I just saw on their facebook page that they confirmed the sim trick.

You were not promised the ability to turn on and off your access and get $30 unlimited access.

That is an absurd conclusion based on a no-contract month-to-month pricing offer. There is literally no other precedent from any business to support that as a reasonable expectation.

 

[cmaier]

You were not promised the ability to turn on and off your access and get $30 unlimited access.

That is an absurd conclusion based on a no-contract month-to-month pricing offer. There is literally no other precedent from any business to support that as a reasonable expectation.

Tons of precedent. Every contract that has fixed term like this (eg supply or franchise agreements) has an implied term requiring repetition for a "reasonable" time. Courts have enforced this implied term consistently. You can't lure someone into entering a contract that is only beneficial if repeated, and then not repeat it. And you sure can't make a promise to lure someone into entering a contract and then not keep the promise. And it was stated quite clearly by AT&T that you could choose to drop from unlimited to 250 and return to unlimited again. (which is what is going to bite AT&T in the ass). Even if it isn't reasonable to expect the same deal forever, AT&T didn't allow anyone to accomplish that even once.

Further, AT&T ADMITS on their facebook page that this was what was "advertised.". You are taking a position even AT&T won't take (because they can't. )

 

[videomilitia]

Join "Demand AT&T iPhone Tethering Be Free" FB Group

If you are pissed off about AT&T's data rate changes and tethering join the "Demand AT&T iPhone Tethering Be Free" Group.

http://www.facebook.com/group.php?gid=132326926783669

 

[DotCom2]

Bait & Switch or False Advertising?

Alot of people here are calling the recent AT&T change of data plans "Bait and Switch" but isn't more "False Advertising" than B&S in that the presentation was touted Advertised as a breakthrough deal with AT&T in which you could start and stop unlimited, at will, and it was even given the example of leaving for vacation, starting the service, canceling when you get back, and starting again when you so desired. Yet....there has not even been one complete cycle where anyone owning a 3G iPad could even have accomplished this since the plan was yanked before this could be done! Isn't that false advertising if you bought the 3G version with the intention of doing just that but no way to accomplish it now?

 

[marksman]

If you are pissed off about AT&T's data rate changes and tethering join the "Demand AT&T iPhone Tethering Be Free" Group.

http://www.facebook.com/group.php?gid=132326926783669

AKA "the group that wants everyone to pay $40 for 2 gigs of data group"

 

[Chip NoVaMac]

Tons of precedent. Every contract that has fixed term like this (eg supply or franchise agreements) has an implied term requiring repetition for a "reasonable" time. Courts have enforced this implied term consistently. You can't lure someone into entering a contract that is only beneficial if repeated, and then not repeat it. And you sure can't make a promise to lure someone into entering a contract and then not keep the promise. And it was stated quite clearly by AT&T that you could choose to drop from unlimited to 250 and return to unlimited again. (which is what is going to bite AT&T in the ass). Even if it isn't reasonable to expect the same deal forever, AT&T didn't allow anyone to accomplish that even once.

Further, AT&T ADMITS on their facebook page that this was what was "advertised.". You are taking a position even AT&T won't take (because they can't. )

This is the reason that after the 7th - we will see the first lawsuits filed IMO. Because no one has been hurt as of yet due to the change as of yet.

 

[moonlit28]

yay discount on iphone data plan...

i just changed my iphone data plan to $25 from $30...
after student discount i only paying for 21.25..ATT doesn't allow discount on unlimited data plan before now they do...NICE
my average usage is around 400mb per month now i can saving 8.75 per month

 

[Tricky_Trav]

Possible reason for iPad rate plan change?

I'm sorry if this has been posted earlier in the thread, but has anybody thought that one possible reason the iPad unlimited plan is no longer available as of the 7th is because of a subsidized iPad 3G.

The iPhone really didn't start taking off until the iPhone 3G when AT&T started subsidizing it, maybe this is one way to boost sales of the 3G capable iPad.

Just a thought, I could be dead wrong, but it makes some sense to me.

 

[Purdin]

Still had unlimited option

I just purchased a 32GB iPad 3G today from Best Buy. When I went to sign up for an account, it still let me pick the unlimited usage account at $29.99 and charged me $29.99. So it appears that Apple is still letting people sign up assuming the iPad's shipped before June 6th.