Will AT&T Charge Extra For MMS & Tethering?

snydeq writes "InfoWorld's Bill Snyder questions whether AT&T's jockeying on tethering and MMS may signal coming iPhone pricing surcharges. After all, as Apple's exclusive US partner, Ma Bell should have plenty of insight into upcoming iPhone features and revenue opportunities. Yet AT&T was very conspicuous in its absence from the list of providers who will support tethering and MMS at Tuesday's launch of the new iPhone at WWDC, and by Wednesday, it was backpedaling furiously, saying it will offer both services — later in the year. Certainly, the exclusive arrangement between the companies is proving to be an ugly roadblock to Apple's iPhone vision. But Snyder thinks it may go deeper than that: 'My best guess is that we'll see horrendous pricing surcharges for tethering and MMS, on top of the already expensive data and voice charges iPhone users pay. I don't think AT&T execs wanted to stand up at WWDC and announce that.'"

Comments

By Design - US lags world in wireless features

[peterdaly]

The iPhone, with itâ(TM)s global reach and marketing may be the first phone that makes it obvious just how far the US is behind other parts of the world in wireless technology. I hope this opens the eyes of many people. Most people have no idea how we compare to the rest of the world, due to the AT&T and Verizon stranglehold. Those two companies buying up all the regional carriers, as well as having incompatible technologies, has lowered functionality and disrupted normal market forces.

Re:By Design - US lags world in wireless features

[digitalunity]

My experience with both, and T-Mobile is that they do not offer reduced rates if you intend to use a phone you acquired from another source. Their rate plans are all designed with the intent that they should subsidize the purchase of a new phone for much less money based on the entering of a long duration contract. In effect, the telecoms are financing your cell phone-except that if you already have one, you dont get a reduced rate.

The entire business model for the mobile telecoms revolves around contract pricing to subsidize reduced price phones, giving them extraordinary power over mobile handset manufacturers. In my mind, this tying arrangement is horrible for consumers because in effect, the handset manufacturers serve the telecoms, not the end users. The telecoms deem which features are allowed on their network and disallow any features that would conflict with their own profitable value-add services(such as uploading ringtones to a phone).

The FTC should have stepped in 10 years ago and realized there is no real competition among handset producers-the telecoms decide who the winners and losers are. If you want REAL competition among handset producers leading to technological advancement, you have to end the tying of phone purchases to cell contracts.

"Will AT&T Charge Extra?"

[Tumbleweed]

Finally, proof there IS such a thing as a dumb question! Congratulations! Was this one of the Millennium Problems?