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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."

27 of 142 comments (clear)

  1. economics by RMH101 · · Score: 4, Insightful

    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...

    1. Re:economics by timeOday · · Score: 4, Insightful

      ...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... my 600 minutes and 600 texts a month gets barely touched

      You're a perfect example of why they don't do it, and why unlimited plans in general survive. You said it yourself, you'd spend half as much on a metered plan. You think that's what they want, for revenue from you to decrease by 50%? That's pure profit; at half the price they'd need 3 or 4 customers to make the same profit because most of the first 15/mo would is "wasted" on, you know, providing service.

    2. Re:economics by mcvos · · Score: 5, Informative

      I'm really surprised to read that an iPhone subscription in the US costs $70 per month. Do people really buy iPhones at that cost? I'm paying EUR 30 per month, and although the euro is worth more than the dollar nowadays, it's not that much more. $70 is hideously expensive, and $70 without thethering is just criminal.

      I'm glad to see a tech gadget cheaper in Netherland than in the US though. Must have been a first.

    3. Re:economics by jasen666 · · Score: 2, Informative

      No. I have an iPhone on T-Mobile. My dataplan is an an extra $20 on top of my normal rate. I don't use many minutes, so have a cheap plan to start with, so my total monthly is around $50.

    4. Re:economics by cayenne8 · · Score: 2, Insightful
      "I'm really surprised to read that an iPhone subscription in the US costs $70 per month. "

      Actually, I'm thinking of switching to save money...my current plan is starting to creep over $99/mo. I don't have texting on the current plan from Sprint...and it is starting to cost me as me and my friends are starting to use it more.

      Yeah, the tethering things sucks on the iPhone, but, I understand there are ways around out.

      But, to me, if I could get the iPhone with unlimited data and texting for the ballpark $80-$90/mo, it would be a good deal to me. I don't have a landline at home anymore, so I only pay cell phone.

      --
      Light travels faster than sound. This is why some people appear bright until you hear them speak.........
    5. Re:economics by PopeRatzo · · Score: 2

      So, with taxes and fees, it costs about $2000 to have an iPhone for two years.

      Hey, that's practically free!

      --
      You are welcome on my lawn.
    6. Re:economics by bennomatic · · Score: 3, Insightful

      I'm not sure I understand this argument against the iPhone, as it's not specific to that product. If you get Sprint's "everything" plan, it's $99/mo, which is just shy of $1200/year or $2400 for two years. This is without taxes, and without the phone.

      The cheapest plan I've seen with unlimited data is Boost's $50/mo plan, but I don't think you can get a smartphone through Boost, so you're using a less advanced phone with a smaller screen and a telephone keypad for browsing the web, sending emails &c. And that's still $600/year, or $1200/2 years plus taxes, plus phone.

      Is there any smartphone/unlimited data phone/plan combination that's significantly less than the iPhone's plans? If the main difference is an extra couple of hundred dollars for the initial iPhone purchase, *that's* what you should be railing against, not the overall cost, which is really really similar between smartphone plans, IMLE.

      --
      The CB App. What's your 20?
  2. I don't live in the US you insensitive clod by Norsefire · · Score: 4, Informative

    Everyone who loves their all-you-can-eat iPhone data: enjoy it while it lasts."

    In New Zealand on our iPhone plans,

    • the most expensive, $130/month, gets us 500MB.
    • The cheapest, $40/month, gets us 250MB.

    All only available on a 24 month contract. My heart bleeds you for America.

    1. Re:I don't live in the US you insensitive clod by Isaac-Lew · · Score: 3, Informative
      Live rates at 2009.05.19 13:55:38 UTC

      130.00 NZD = 78.1904 USD

      (According to www.xe.com)

  3. The psychology will be interesting... by fuzzyfuzzyfungus · · Score: 4, Insightful

    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.

    1. Re:The psychology will be interesting... by tgd · · Score: 4, Interesting

      Unless the tiers are pretty low, it may not impact most users.

      I just checked -- in the time since I had my iPhone replaced when the battery blew up (end of last August) I've transferred 1.1GB over cellular down, under 100MB up. I use it constantly for "normal" sort of stuff -- Pandora in my car once or twice a week, lots of e-mail. Lots of web surfing. Maybe 20% of the time I update or install apps when I'm not on WiFi.

      That's barely 150MB of downstream transfer a month. There may be power users who use vastly more, but they probably should be paying vastly more. Even a 500MB or 1GB cap per month would be more than enough for the majority of users, I'd bet.

      Hell, looking at my usage, a pay-per-minute phone plan and a 500MB per month cap would be fantastic if it cut my bill in half. I've got almost 5000 rollover minutes built up because of less than 50 minutes of month of voice usage. I hate being stuck on high voice usage / "unlimited" data plans.

    2. Re:The psychology will be interesting... by horatio · · Score: 3, Insightful
      Here's my issue with the idea that AT&T is complaining the iPhone is using too much data, so they have to scrap the unlimited data plan. Said "unlimited" data plan is already limited - just not in a strictly by-the-numbers bandwidth fashion. There are several things I know of that I'm not permitted to do while on the 3G network:
      • Apps > 10MB have to be done on the desktop version of iTunes, or over wifi.
      • The (new) slingplayer app only works on wifi (would have been useful to know BEFORE paying $30 for the app. Do the WinCE/crackberry versions have this restriction?)
      • Podcasts are limited to to those which the iPhone allows. You can subscribe in iTunes and sync, but you can't download podcasts > 10MB on 3G.
      • I'm sure the lack of flash is about Apple exerting control over the platform, but I wouldn't be surprised if it was also about bandwidth.

      I'm not suggesting that the iPhone should be a platform for fetching the latest Ubuntu ISO on the 3G network. But for AT&T to play like iPhone users have unlimited options to use as much bw as they like is just not reality.

      --
      There is very little future in being right when your boss is wrong.
    3. Re:The psychology will be interesting... by The+End+Of+Days · · Score: 3, Funny

      First the power users thought I should subsidize them, and I said "Fuck you!" because I don't see why I should do that. Then the power users tried to sway me with emotional pleas and slippery slope arguments, and I again said "Fuck you!" because it seemed like the right response.

  4. I just wish I could use my existing AT&T plan by Scyber · · Score: 4, Interesting

    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.

  5. Sometimes... by Bicx · · Score: 5, Funny

    ...I use my wife's iPhone to scrape ice off the windshield.

    It felt good to get that off my chest.

    1. Re:Sometimes... by mcvos · · Score: 5, Funny

      ...I use my wife's iPhone to scrape ice off the windshield.

      Doesn't surprise me at all somebody wrote an app for that.

  6. pay for features by fermion · · Score: 2
    What has happened so far is that ATT charged for new featured. When it went to 3G, text messages were no longer included. What is the next feature users want? tethering. A laptop will use more bandwidth, so this is likely going to be another plan. Ideally there will be a cheaper plan for users who want a cheaper plan. Then there is the feature that many want, which in the US is availability through Verizon, which allegedly did not want Apple to control the platform. It seems reasonable that if Verizon gets an iphone like device, it will set the plan as it wishes.

    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
  7. Rollover data by Algan · · Score: 3, Interesting

    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?
  8. Re:Bait and switch? by Richard_at_work · · Score: 3, Insightful

    As long as they make this plan change after your initial term is up, it isn't a bait and switch - no one is forced to provide the same service indefinitely, especially when the original contract has expired.

  9. a crap story by cornercuttin · · Score: 4, Interesting

    "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.

  10. Re:Bait and switch? by The+Cisco+Kid · · Score: 2

    The iPhone 'product' is a hardware device, produced by Apple. You purchase it outright for cash in a one-time transaction.

    Internet access (unlimited or otherwise), as well as 'the ability to receive (or make) calls' are services provided by a telecom company, which you pay an ongoing monthly fee for.

    For the most part, when you buy the hardware device you are also forced to subscribe to the service from (a particular) telecom company.

    You sound like you are 'all for' forced bundling of the two, as opposed to free market competition. Good luck with that. I'd prefer choose and purchase a device. and then (separately) choose and purchase service. Eg I consider a "device" product (which I might use with one or more of a variety of service products) as entirely and wholly seperate from a "service" product (which I might choose to use with one or more of a variety of device products)

  11. Euro-Symbol by atrocious+cowpat · · Score: 3, Informative

    PS: Slashdot doesn't handle the Euro symbol properly. Looks like â.

    Apparently the HTML-Entity works, I saw it in another thread:
    & euro ; (withot the spaces) gives you: €.
    Viola. :)

    --
    sig? Oh, that sig...
  12. Re:I just wish I could use my existing AT&T pl by Scyber · · Score: 2, Informative

    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.

  13. Re:tiered data = use it for anything by Pitr · · Score: 2, Insightful

    That only works if you assume that "logic", "fair use" and "common sense" are at play here. i.e. I paid for and own my cell phone so I can unlock it and do what I want with it right? (I'm in Canada, so actually I can, but not so much in the US, your mileage may vary by state)

    Point being, if you pay for data, it shouldn't matter how that data is used, period. It shouldn't even matter on unlimited plans. Data is data. Everyone here on slashdot understands it, as do the providers, but why not gouge the consumer anyway, it's not like there's a regulatory body in charge of making sure the consumer is protected against this sort of thing... /sarcasm

    --

    --Not to be worried, Pitr fix.
  14. Why does it cost this much? by man_ls · · Score: 2, Interesting

    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.

  15. Re:Better make sure that phone continues to work. by bkaul · · Score: 2, Informative

    AT&T phones use SIM cards. You can pop your card into an unlocked phone that you buy somewhere other than an AT&T store with no problem - no new activation required. (I'm actually using an HP iPAQ 614c, which isn't even sold in the US.) You only need to cave and sign the new contract if you want them to subsidize your phone.

  16. Re:economics-Need a Points System by Nom+du+Keyboard · · Score: 4, Interesting

    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.

    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."