AT&T Cracking Down On Unofficial iPhone Tethering
An anonymous reader writes "AT&T is sending warning notifications to jailbroken iPhone users who use unofficial tethering methods like MyWi and PDANet. 'Customers are being notified that their service plans need updating to subscribe to a tethering plan, and that they will be automatically subscribed to a DataPro 4GB package that costs an additional $45 per month if they continue to tether.'"
How do they detect if the users are tethering??
Do Americans know that no one else in the world does this? Not in Europe, not in Asia. They sell you the service and you use it how you want.
O2 in the UK charge £7.50/mo for a tethering + 500MB bolt-on for consumer tariffs (you can't buy the tethering without the additional data). I believe 3 offer it free, but not sure about others.
They do know this, however unlike other places in the world, we are a captive audience when it comes to wireless providers, the 4 major carriers (and now I will put on my tinfoil hat) appear to collude to a point that price and features all cost around the same. The only thing that differentiates them is how good their coverage is in the different areas.
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It's like when your ISP charges you more to use a desktop than a notebook or tablet. Oh wait, no they don't. That would be crazy.
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How is this even allowed? I pay for 2GB of data per month. Whether the traffic goes to my iPhone or to my iPhone and then to my iPad isn't really any of AT&T's concern. There is no extra overhead, no extra work on their side. All the routing is done on the phone itself. This sounds like a double charge on a single service. Am I missing something?
Isn't it against regulation to force you into an added-charge service unless you opt out?
There is one simple little reason: Americans appear to be willing to pay for it.
Most US cell phones are free or almost free. The fact that you're getting a free phone in exchange for paying thousands of dollars over two years for service seems to be lost on most consumers here.
Americans also regularly pay over $100 per month for cable TV... and there are ads on almost every channel (often taking up a full third of every hour of programming!), not to mention pay-per-view channels.
Indeed, how do Americans fall for this stuff while people in other nations seem to be able to get better deals? Are we really just that dumb?
I don't think it has anything to do with intelligence. It's about being brought up in a culture where such stuff is the norm and thus not seen for what it is - simple exploitation. Of course, it doesn't help that a lot of Americans are simply unaware of what goes on elsewhere..
I came to the US from India a few years ago and was absolutely stunned by how the phone thing works here. Stay locked in to a phone for two fucking years? Seriously? What if you want to upgrade your model? Two years is a loooooong time in the tech world. What if you want to change your carrier AND change your phone? What if you want a prepaid phone with as cheap service rates as a post paid one? What if you want to pop in a new SIM from another carrier. What if.....oh forget it!
Indeed, how do Americans fall for this stuff while people in other nations seem to be able to get better deals? Are we really just that dumb?
Not that much. The "will happily pay thousands of dollars because they're giving me a free phone now" is possible thanks to a logical fallacy called "hyperbolic discounting" -- the article in the link refers to lab animals, but it's proven that it works on humans, too. Simpler descriptions here and here. Of course it's being exploited and used as a marketing method since years. ;) but this marketing technique is so widespread we don't even notice anymore.
And: not only Americans fall for this, and endless businesses all around the world use this trick to, well, screw us. We Europeans just like to think we are smarter than the yanks
Mostly harmless.
The answer to all of the above hysterical "what if" questions is simply you pay the early termination fee - which is the difference in price between the subsidized and retail price of the phone. Or you sign up for service with no contract using a used phone you buy off craigslist/ebay.
And when you (the customer) agree to a contract that says "tethering costs extra," and then you tether anyway without paying that extra fee... aren't you violating the very basic principles of how agreements work as well?
This isn't "changing" the contract, this is telling you, "Either abide by the contract you signed, or pay up for the services you're consuming."
Whether or not charging extra for tethering is reasonable is certainly debatable; that you're violating the contract (in which you agree that tethering costs extra and may be added to your plan if it's offered on your phone) by tethering without paying for the plan is not debatable.
Do Americans have a choice? I can't find a wireless carrier who has reception in my area who offers anything other than these plans.
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