AT&T raises iPhone data plan to $30 a month
iPhone not so cheap after all.
(Credit: Apple)It turns out there's a reason behind the iPhone 3G's dramatic price cut ($199 for the 8GB model)--AT&T has agreed to subsidize the phone in return for a $10 increase in monthly unlimited data plans. Unlimited 3G data plans for business users will cost $45 a month in addition to a voice plan, presumably because of a higher consumption of data. So even though the phone itself is cheaper, it will cost you more in the long run. That said, the faster 3G data service might be well worth it to most people.
This new revenue-sharing plan is a departure from Apple's previous deal with AT&T, where AT&T gave a portion of the monthly usage fees to Apple. Now Apple is in a much more traditional deal with AT&T, where the carrier subsidizes the phone upfront in hopes of earning back the cost of the phone over time.
Also, there's news that if you bought the old iPhone after May 27, you can return it to the store to get a new one without incurring an additional handset charge (though you still may have to pay the restocking fee). We have yet to confirm this, though; we'll keep you updated as soon as we contact our sources.
Nicole Lee is an associate editor for CNET, covering cell phones, Bluetooth headsets, and all things mobile. She's also pretty geeky--she likes World of Warcraft, comic books, and shiny gadgets. E-mail Nicole.
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If my math's correct, that results in a fee/tax rate of 21.7%. The $10 increase is really an increase of over $12, say $144 a year. That would bump me well over $1000 a year for phone and mobile data service. That's a pretty big premium over my current setup (3G Samsung Sync), and doesn't include the cost of the iPhone either ($199 + ???).
I think I'll stick with what I have. :-)
The unlimited data plan on the 3G iPhone will increase to match other AT&T 3G phones: the unlimited data plans for 3G Blackberries start at $30/mo while the Windows Mobile phones start at $40/mo. When my previous smartphone (Cingular 2125) was dying, I chose the EDGE iPhone over 3G Windows Mobile phones because of the iPhone?s cheaper data plan. The iPhone was AT&T?s only non-3G phone and so the only one that had a $20/mo data plan.
Yes, the 3G iPhone is cheaper to buy, by $200. But, I will pay $240 more for it during a 2-year contract than the old iPhone because of the increased data plan cost. That?s only $20 more per year for the 3G phone. That doesn?t seem like much, but paying more than $20/mo is a psychological barrier for me and possibly others.
Can you say Android?