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Speculation: New data rate packages preface end of AT&T iPhone exclusivity

T

tuna

macrumors 6502
Original poster
Apr 11, 2010
388
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The $15/month "DataPlus" plan from AT&T has gotten me thinking. According to AT&T, 65% of their smartphone customers use less than 200MB a month and is there really any doubt that the majority of iPhone users will sign up for this plan?

But then, I thought, how could AT&T afford to maintain their iPhone subsidies and exclusivity contract with many iPhone subscriptions generating $180/year lower revenue for them? ($15 x 12 months) The iPhone hardware costs the same whether the person is using 200MB of data or 2GB.

The obvious answer to me is that they can't. It's speculated that AT&T pays Apple over $300 per iPhone, which makes sense based on international prices for unlocked iPhones. The only way that AT&T could afford to offer $15 data plans with the iPhone is if they are subsidizing iPhones significantly less, and they could only subsidize them significantly less if they are no longer maintaining their exclusivity.

There's also the possibility that rather than giving up exclusivity, AT&T is giving up the degree to which they subsidize the iPhone price point... but in the context of other news and rumors, I find this less likely.
 
So this isn't media speculating, it's you? Oh and i thought this was going to be an important thread :rolleyes:
 
If people move to the new lower plan in droves, AT&T will more than make up for it with people who go over their 200MB or 2 GB.
 
This is very-well a good point .. AT&T is trying to become more competitive as the iPhone carrier as fears grow and more rumors than ever start surfacing that the iPhone is going to other carriers ... hell, even Steve revealed that "he could not discuss" if the iPhone was going to other carriers. Don't you think if the answer was flat-out no, he would have answered in such a manner?
 
hippo206 said:
.... is waiting for this to turn into a Verizon thread...
Click to expand...

Verizon is happening, but I think it would be just as cool if the iPhone coming out this month was compatible with both AT&T and T-Mobile. The technology to do it is very simple. They both use the same cellular standards, and they even are both in the process of upgrading to HSPA+...
 
I think that it symbolizes a longer exclusivity. If you were the only iPhone holder in the US you could do whatever you wish with pricing(like what they are doing as of June 7th). If they were not the exclusive carrier they would have to win the customer over with good deals. You don't keep customers by making your data prices worse.
 
tuna said:
Verizon is happening, but I think it would be just as cool if the iPhone coming out this month was compatible with both AT&T and T-Mobile. The technology to do it is very simple. They both use the same cellular standards, and they even are both in the process of upgrading to HSPA+...
Click to expand...

Not that this would be an issue, but don't forget they don't use the same frequency for 3G...so an additional band would need to be added as well.
 
appleguy123 said:
I think that it symbolizes a longer exclusivity. If you were the only iPhone holder in the US you could do whatever you wish with pricing(like what they are doing as of June 7th). If they were not the exclusive carrier they would have to win the customer over with good deals. You don't keep customers by making your data prices worse.
Click to expand...

I guess this argument has erupted all over this forum, and we'll know which side is right soon enough, but I'm definitely in the camp that believes that the new data packages will lead to lower average data revenues per subscriber per month. That AT&T is doing this to improve their overall competitiveness, not to screw subscribers. Compared to the current $30/month plans, many millions of people will be completely satisfied with the $15/month plan, and 98% of people will be satisfied with the $25/month plan.

~While looking over my own data usage in my AT&T account (average less than 250MB/month with no complaints, although a lot of wifi use), I found out that my sister's iPhone has been averaging only ~40MB/month! But she sends 2500+ texts a month! She'll definitely be downgrading to the 200MB plan this month.
 
jav6454 said:
Verizon's CEO hinted even at 4G data tiered pricing, which IMO is the biggest stupidity ever. Sprint offers unlimited 4G as is right now.
Click to expand...

Verizon doesn't see Sprint as a big threat. If they did, they would match their unlimited plan. But instead they get within $30/month and still don't include everything. AT&T and Verizon will be able to get away with this until Sprint and/or T-Mobile get their act together and become credible competition.
 
Geckotek said:
Verizon doesn't see Sprint as a big threat. If they did, they would match their unlimited plan. But instead they get within $30/month and still don't include everything. AT&T and Verizon will be able to get away with this until Sprint and/or T-Mobile get their act together and become credible competition.
Click to expand...

My hope is for T-Mobile to come thru. They have a nice plan going along (21Mb/s) and they are known for their cheapness.
 
sure, because att giving new plans that people have been begging for means Verizon is coming? well i guess Verizon has been coming since 07. i wait that is what everyone has been saying. its not happening:apple:
 
goobot said:
sure, because att giving new plans that people have been begging for means Verizon is coming? well i guess Verizon has been coming since 07. i wait that is what everyone has been saying. its not happening:apple:
Click to expand...

Nope, it's not. Neither is an Apple tablet or an Intel processor.
 
I doubt it. This is going to cause even MORE people to leave ATT. If they did something different, like lower it to $20, it would make more sense.
 
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