Tiered Data Plans Coming To the iPhone?
jfruhlinger writes "For years analysts have been insisting that Apple must introduce a cheaper iPhone, and soon. So, when Business Week heard that cheaper plans were coming, it reported the news in a positively giddy tone. But, I'm convinced that this is an under-the-radar move to shift to tiered data plans. Everyone who loves their all-you-can-eat iPhone data: enjoy it while it lasts."
Crap. It's just simple economics: if you want to lower the monthly charge for a phone on contract, you up the charges for calls and data. In the UK, if you want an iPhone on contract, you're looking at 30UKP a month plus the subsidised cost of the handset: this is a not-inconsiderable monthly charge. They'd sell to a whole additional demographic if they could push it out at 15UKP a month with a nearly-all-you-can-eat plan, with costs for going over your allowance - hell, I'd probably buy it myself - my 600 minutes and 600 texts a month gets barely touched, although I use the data a lot.
It would also give O2 a way of offloading all the surplus 3G iPhones cheap in advance of the latest model getting announced in June...
"Everyone who loves their all-you-can-eat iPhone data: enjoy it while it lasts."
I'm pretty sure the consumers will figure out this tiered data plan scheme trying to nickel and dime them. I'm betting we'll have our unlimited data plans for as long as we have had in
Everyone who loves their all-you-can-eat iPhone data: enjoy it while it lasts."
In New Zealand on our iPhone plans,
All only available on a 24 month contract. My heart bleeds you for America.
Nice Sheep!
Let me know when they start selling it unlocked and I can use whatever data plan on any network I want.
Yes I could unlock an iPhone or go to one of the few countries where they sell them unlocked for political reasons but I don't want to support their anti-competitive business model and their lawyers as they are working hard to find a loophole in the law so they can sell it locked & exclusive everywhere.
Down with these exclusive deals, the practice of SIM locking and other client-side restrictions. I have a factory unlocked Nokia E51 and when the last network I was on pushed up their prices I just got a new SIM card on another network.
In the US of A when someone asks me what phone I have they expect me to name the network, not the phone itself - they look confused when I say E51. With the iPhone European networks are trying to usher in a new era of proprietary "for the network, by the network" phones after years of GSM openness. People here are putting up with expensive plans from scummy Ohtue (Telefonica O2) just so they can have their stupid iPhone.
Buy the handset, not the contract. It might seem cheaper but really it never is in the long-run. Apple get generous kickbacks from AT&T and Ohtue, someone has to pay for those - the person who buys the iPhone. I can see why people buy phones on contract, its the same reason why people buy furniture on hire purchase. They are deluding themselves into thinking its cheaper and they have this attitude of wanting everything *now*
In observing iPhone users of my acquaintance, and in my vicinity, I've gotten the impression that one of the things that separates it from the touch, in their perception and use, is the "always connected" aspect of it. The being able to use the internet and internet related applications more or less without thinking about it, unlike the touch, where you have to be near a friendly AP.
Given that, I'd be very curious to see how it would fare under a limited data plan. Having to think about the data you are using really crimps the casual and spontaneous nature of the use(just as, when I was on dialup, "being online" was a separate state from "being on the computer" even though the dial-in process only took a couple of minutes, tops. Once I got broadband, even crap DSL, the two became more or less synonymous). If there is a large population that just wants an iPhone for music and/or status, then this should be well recieved. It should also be popular, assuming the price is low enough, with anybody who currently has a touch and a carrier throwaway handset and wants to consolidate.
Outside of those populations, though, an iPhone on a limited data plan seems rather unattractive. Strictly as a phone, the iPhone is merely OK, and pretty damn expensive for what you get. The charm is in what it can do with a data connection. Having to look over your shoulder at your usage all the time would seem to render that less attractive.
I expect "Tiered" plans to come out so users can take advantage of tethering because currently their Wireless access for computers is tiered.
And currently, with Wi-Fi (which works AWESOME on the iPhone) I have only gone over 100MB once in the entire time I've had it. I'm just hoping that there are price plans available for cheaper.
I'm grandfathered into an unlimited 3G Data & SMS plan for $20/month. Now they have a tendency to call me and leave voicemails when I use too much data (telling me that I must "upgrade" to a different plan). But I just never call them back and don't run into an issue.
...I use my wife's iPhone to scrape ice off the windshield.
It felt good to get that off my chest.
Where a huge telco dumbed down a generation into believing every packet up and down is sacred. ... pay ... ad. :)
Dont let this start, rage against the AT&T and Apple.
Expose the greed and lock in.
This should make every US phone user think: "They are doing this so they can get rid of older accounts which are truly unlimited"
After caps are in the only way to get a "deal" is to buy more services from the same company.
Find your inner "AT&T and Me" or "Apple and Me" (ie. Roger & Me), upload to any flash video sites and expose this data model before it can start.
eg. Start a "get a packet" viral ad, with I'm a Mac and I'm AT&T
Re write the AT&T 1993 "You Will"
Enjoy US "parody" laws
Domestic spying is now "Benign Information Gathering"
As far as I'm concerned the "product" of the iPhone includes unlimited internet access, because that was one of the advertised features. Removing that feature would be no different than, say, removing the ability to receive incoming calls.
Beyond this I do not see tiers. Most cell companies do not seem to be moving in this direction.
"She's a scientist and a lesbian. She's not going to let it slide." Orphan Black
I still have and love my Gen 1 Edge iPhone. I'm paying the $20/month unlimited data INCLUDING the 200 free texts. There's NO WAY they'll get me to pay MORE to have the same plan on a new phone... I'm about 20 months in since purchase and have not reset my usage stats. I'm 1.8GB in, and that's over Edge! (plus another 200MB uploaded) ...and I only really started using Pandora heavily about 4 months ago, so although my average pings in at about 100MB/month, I'm likely averaging closer to 200MB currently. I also expect that to increase with 3.0, and my usage to increase over time with new games, multiplayer interactions, and more and more web enabled content.
If they plan on getting me into a new phone (or keeping me much longer beyond the end of my contract), they'll need to match Sprint and Verison's $99 unlimited everything plans...
I only subscribe to the 400 minute plan currently, so I'm under $70 a month. Moving to 3G would have added $15 a month to my plan, and with the big benefit being 3G with half the battery life, and considering 95% of my surfing is on wireless anyway, i never saw the point in the upgrade...
A snazzy new faster model with better battery life and a good camera will tempt me, but if the plan prices for unlimited data go up any more, Honestly, I'd rather take my phone to another provider and buy a good pocket didigtal camera with the savings... My wife's already on Verizon, so i can switch my line to her plan without signing a contract.
There is no contest in life for which the unprepared have the advantage.
AT&T has been doing that to my mom ever since they changed from AT&T, Cingular and then back to AT&T... Seems my mom was in contract(with automatic renew) for $40.00 a month for 1500 mins. needless to say they wont upgrade her phone, wont help her out without forcing her to make a new contract for less mins (450). Good Bless her she wont.
That's interesting. I had a $15/month MediaNet unlimited data plan, but when I bought an iPhone 3G, they forced me to upgrade to the newer $30/month data plan. They wouldn't have sold me the phone otherwise. But then, I never get calls about using too much data, even when tethering on the road.
And you wonder why they won't let you use your existing plan? :)
What I would like to see is rollover data. Right now I'm paying $30/mo for an "Unlimited" data plan (which is really just 5GB/mo). My average cellular data usage is around 60-70MB/mo. 95% of my time is spent in places that have wifi coverage. If they would offer a 100MB plan for $10/mo with rollover data I'd be on it in a heartbeat.
If con is the opposite of pro, is Congress the opposite of progress?
"For years analysts have been insisting that Apple must introduce a cheaper iPhone, and soon.
i'm not going to read this story based upon the above quote. the iphone has been out for almost 2 years. you don't get to use the phrase "for years" when talking about something that technically isn't 2 years old. this is an attempt to make this story a bigger deal than what it really is.
Their plans beat anything that AT&T can offer, and they are soon to offer the IPhone, so AT&T is going to lose a slew of customers over this.
is if enough users track data usage - easy enough to do with an iPhone and discover a lower capped plan is cheaper then ATT will lose revenue - the question is will they get enough additional subscribers to make up for the loss? Also, will they increase the contract length if you switch plans?
I'm a consultant - I convert gibberish into cash-flow.
How much data do you use? I've been wondering how far you can go before they start complaining.
The crimes of eBay are a disgrace to it's pig latin heritage!
As as iPhone app developer I'm seeing increasing numbers of rejections from the AppStore review process due to "excessive volumes" (this isn't quantified anywhere, nor will they explain the review process - they don't answer emails).
In the iPhone SDK Agreement section 3.3.15, is prohibited:
" If an Application requires or will have access to the cellular network, then additionally such Application:
- Must comply with Apple's best practices and other guidelines on how Applications should
access and use the cellular network;
- Must not in Apple's reasonable judgment excessively use or unduly burden network
capacity or bandwidth;"
Forget watching decent quality video in an app! 100kbps (one hundred) will get you rejected!
A plus side to the death of unlimited data plans would be the ability to use your data plan for anything.
Want to use Skype? Bittorrent? Tether to your laptop? Go for it. It's your data.
There's no "abuse" when you're the one paying for it.
Apparently the HTML-Entity works, I saw it in another thread: :)
& euro ; (withot the spaces) gives you: €.
Viola.
sig? Oh, that sig...
I never tracked it precisely, but after getting the calls I checked my usage and every time it was over 1GB for the month. I used to use the phone tethered to my laptop during my commute (90 minute each way). I no longer have such a long commute, so I don't use nearly as much data.
I called an AT&T rep and they said that the $30 unlimited plans would continue next month. They don't see it coming to an end anytime soon. Why the hell did the article say that the $30/month plan for unlimited data is going to end? It's not.
Businessweek doesn't even say anything about that. It just says that AT&T is going to offer cheaper tiered data for $20 a month, but they won't do away with the unlimited.
Why do 3G data plans cost this much? Why are providers fighting to drop unlimited data plans whenever they've existed to go back to tiered models?
I was looking into purchasing a 3G data card to use as my primary Internet connection, since I primarily use a laptop anyway and frequently am traveling or otherwise on the road.
Verizon: $59.99/mo for 5GB (or $199.99/mo for 10GB, which is only available by request and not advertised.)
AT&T: $59.99/mo for 5GB
Sprint: $59.99/mo for 5GB
T-Mobile: Had trouble finding specifics for a standalone card, gave up looking.
So, there you have it: all the major carriers offering this service, offer the exact same product at the exact same price. (The product being wireless 3G data access, anyone who wants to mention the modulation differences is being pedantic.) Price-fixing and collusion, anyone? Sprint used to offer an actually-unlimited data plan, but as far as I know, that ended quickly and their pricing fell right in line with that of their "competitors." It would actually be cheaper for me to purchase multiple 5GB accounts than to just use a single device the entire time.
Why is it like this? Surely, the cellular networks aren't so much lower capacity than regular networks are. It's not like everyone would suddenly ditch their cable/DSL/fiber service and switch to 3G anyway: most people don't need or even want that. I'd be willing to pay about $100/month for true-unlimited 3G service, but I just can't find anyone willing to sell it to me.
I think the FTC and FCC should open some investigations on this subject. Especially with these companies spending billions to "upgrade their infrastructure" in a way that, apparently, provides consumers with fewer choices and more restrictions.
The first one is always free. Get people used to the device, then start squeezing them.
---- Booth was a patriot ----
...since I got my iPhone at the end of December, I have used 287 MB down and 50-odd MB up on the cell network.
Most of what I do is on Wi-Fi, evidently. I've used it tethered in a few emergencies (I'm a journalist) and I'm fairly cavalier about downloading stuff. I guess I just happened to be doing it while on Wi-Fi without really thinking about it.
I would hate to have to think about it, though, and check. That would suck.
OMG fuck them, it DOESN'T need to cost that much. I have an htc Winmo phone on evdo service, Cricket in Colorado 60/unlimited everything, CDMA unfortunately, but when you start paying those outrageous fees, they're going to think it's ok, but it's not at all.
Tiered data plans are no surprise at all, since Apple is supposed to release tethering capabilities with the new iPhone firmware. The average net usage on an iPhone is substantially lower than that of almost any laptop user and like it or not, AT&T will charge more... a LOT more. Heh.
I agree with tiered pricing, in a sense. People who check their email 3 times a week and look for coupons occasionally shouldn't pay as much as the guy next door downloading 1080p movies from Bittorrent. However, the amount that companies WANT to charge you for REAL, UNLIMITED data is in the hundreds... For tiered pricing to make sense, we need to have reasonable prices.
What's reasonable? Well, that's subjective, apparently.
Fact: Everything I say is fiction.
>> For years analysts have been insisting that Apple must introduce a cheaper iPhone...
Seems an excessive statment given iPhone first went on sale less than a year and a half ago.
You're a perfect example of why they don't do it
Sure, because any company would give up adding 3x the sales to people that would never buy the most expensive plan anyway, while still keeping most of the people on the more expensive plan who just want unlimited data...
It's simple math (and economics), if you can add a ton of customers it doesn't matter if you are collecting less per customer.
"There is more worth loving than we have strength to love." - Brian Jay Stanley
The usability issues with the E70 were a postage-stamp-sized screen, atrocious battery life (Probably to be expected due to having to maintain the wifi connection while I was home) and T-Mobile constantly changing the data plan. They eventually required signed applications to get to the net, making it useless to me since my phone wasn't.
Once my contract on my iPhone expires I'll be looking at other devices again. Even if I find a decent one I'm still not guaranteed to find a cellular provider in the US that doesn't suck.
I'm trying to teach myself to set people on fire with my mind... Is it hot in here?
Everybody knows that the "Unlimited" plan is limited to 5GB a month.
So why are ya bitching?
For $30/month all in I get unlimited Internet, texts, off-peak minutes, and 500 peak minutes. I suspect its far cheaper rates is part of the reason why Sprint is doing so poorly and AT&T is doing so well.
In the last conference call, the AT&T execs were quite proud of the fact that the typical Apple user on their network paid over 2x the industry standard "ARPU" (average revenue per unit). I'd guess AT&T is willing to push this a little, squeeze the Apple base, and see if it can push the ARPU up to 3x.
Da Blog
Ontario, you just don't pay for data plans like i don't.
until a data plan is considered part of my home internet usage i'm not paying more jus cause i have it coming through a separate peripheral.
I can live with out the net on me everywhere i go, and i plan to stay that way till it's free. (As in comes with your home subscription)
Well i might consider paying, $0.01 - $1.00/mnth
Or
A 1 time set up fee for $1.00- $10.00
My wife gets unlimited Internet and texts, unlimited off-peak minutes, and 1500 peak minutes for $50/month (plus taxes). She can tether the phone, either through USB or over Bluetooth/WiFi, and share out the 3G connection. The throughput is usually around 1500/800. This is on Sprint.
Da Blog
Oh yeah, all this plus long distance. And with Skype and fring on the phone, also international.
Da Blog
Around 0%.
Jailbreak it; there's a tweak you can install that makes all those apps think they're on wifi.
All you can eat except for SlingBox, BitTorrent, tethering... - and anything else AT&T decides not to like today.
There is no competition in the iPhone market, so don't expect any changes to be doing anything to reduce AT&T's profits.
In fact, the only iPhone competition is the Palm Pre.
"It's the height of ridiculousness to say for those 9 lines you get hundreds of millions."
Hey, does anybody besides me realize that a cell phone company who charged on a "point" system would probably have customers flocking to them?
You buy a given amount of points per month. A text message costs the minimum 1 point. 3 points/minute for calls on prime time, 1 point/minute nights and weekends. 2 points/mb data prime time, 1 point/mb data nights/weekends. Buy your points and spend them as you like to meet your own needs. It could be a great deal on both sides.
"It's the height of ridiculousness to say for those 9 lines you get hundreds of millions."
They don't tell you it's gone until after it's gone. This way you can't rush in to get it at the last moment when they want to be rid of it.
"It's the height of ridiculousness to say for those 9 lines you get hundreds of millions."
most people who want an iphone already have one.
Not according to the WSJ.
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1. The new iPhone is unimpressive because they may not change everything about it that people like.
2. Another phone which can't be purchased (Pre) on a network worse then ATT (Sprint) will be better (like how betamax was better) then the iphone.
3. An unfinished yet available OS (like Linux) on an even worse network then the Pre (T-Mobile) will eventually best the iPhone in a market it doesn't know who to target.
4. People who can't have it or afford it will continue to bash the iPhone but claim they could buy it or afford it but they choose not to because [groundless reason] and they are not a sheep.
They'll never do that, though - their pricing structure is very successful for them in breaking the mental link between what you pay and what you get, as evidenced by the fact that people talk about their "free minutes" without mentioning the huge monthly bill!
So come July, the first round of iPhones should start being legitimately unlocked and resold. Where's the best online marketplace for used phones?
Unlimited? Gee try living in Australia where you get raped for every kilobyte! Hel$tra charges $15/mo on top of your phone cap for 150mb!