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AT&T Imposes Another $5 Rate Hike On Grandfathered Unlimited Data Plans (arstechnica.com)

Posted by BeauHD on from the sky's-the-limit dept.

An anonymous reader quotes a report from Ars Technica: ATT is raising the price of its grandfathered unlimited data plans by $5 a month, the second such increase in the past year. The price increase affects longtime mobile customers who have held onto unlimited data plans for years after ATT stopped selling them to new subscribers. The latest price increase was reported by DSLReports yesterday, and ATT confirmed the move to Ars. "If you have a legacy unlimited data plan, you can keep it; however, beginning in March 2017, it will increase by $5 per month," ATT said. The unlimited data price had been $30 a month for seven years, until ATT raised it to $35 in February 2016. The price increase this year will bring it up to $40. That amount is just for data: Including voice and texting, the smartphone plans cost around $90 a month. ATT encouraged customers to move to one of its new plans, most of which have data limits, saying the newer packages "provide several benefits that our legacy unlimited plan doesn't." For example, the newer plans support mobile hotspot connections allowing a phone's Internet service to be shared with another device. ATT had stopped selling unlimited smartphone data to new customers and to customers who are switching plans, but last year introduced a new unlimited plan that's available only to people who also subscribe to DirecTV or U-verse TV.

58 comments

  1. Again by Dorianny · · Score: 3, Funny

    "Thank you sir, may I have another"

  2. AT&T -- pushing away their loyal customers by Anonymous Coward · · Score: 0

    Have been a loyal AT&T mobile customer since the iPhone premiered. I've stayed with them because they have good service (for me) and the "unlimited" data plan. I can swallow 1 price increase in 7 years, but 2 $5.00 increases in 13 months? That's ridiculous. I'll certainly be checking out my other options. AT&T -- short term gain, but long term idiots....

    1. Re:AT&T -- pushing away their loyal customers by iamgnat · · Score: 4, Informative

      I was AT&T since before they sold off wireless to Cingular. Got tired of the iPhone and switched to a Nexus late last year, then I bit the bullet and dropped AT&T for Google's Fi service. My only complaint with Fi is that it just works for Nexus and Pixel phones. The service and cost structures are incredibly refreshing (what do you mean I get credit back for unused data and don't get raped for overage charges???).

      tl;dr: To hell with AT&T and the rest.

    2. Re:AT&T -- pushing away their loyal customers by Anonymous Coward · · Score: 2, Informative

      Since I have a Real Computer with Real Internet, I don't use massive amounts of mobile data, so I went with Ting and am pretty happy with the sub-$20 bills so far.

    3. Re:AT&T -- pushing away their loyal customers by Wintermute__ · · Score: 1

      I'm in the same boat - been an AT&T customer since before Cingular. Unlimited data has been pretty much the only reason I've stayed there this long. Now they're trying their best to get rid of me. It may just work.

    4. Re: AT&T -- pushing away their loyal customers by Anonymous Coward · · Score: 0

      Take a look at cricket. I don't work for them. That's where I went after the first price increase. Same network, saved me $30 a month.

    5. Re:AT&T -- pushing away their loyal customers by KingMotley · · Score: 2, Insightful

      I was on the grandfathered plan but when you realize that the "Unlimited" plan is really just a 2GB or 3GB plan (they've changed it a couple times), and then throttling down to EDGE speeds the other plans are just cheaper, since this is what their other plans do as well. And "free" unlimited texting (a $20 add-on to the grandfathered plan). And you can hotspot. And unlimited voice. And you can add additional phones for pretty cheap.

      There really is no reason to hang on to those grandfathered plans unless you don't text (pretty much at all), or you expect some day the FCC will force AT&T to unthrottle the unlimited plans, and you never need to hotspot.

    6. Re: AT&T -- pushing away their loyal customers by bhcompy · · Score: 1

      Yep. Unlimited everything, $65/mo. Switched last year. Same ~22gb before they look to throttle you that ATT has

    7. Re:AT&T -- pushing away their loyal customers by bhcompy · · Score: 3, Informative

      The unlimited plans no longer are capped at 5gb before they throttle you. It's now set around 22gb, and the throttling is only if the cell tower is congested.

    8. Re:AT&T -- pushing away their loyal customers by skoony · · Score: 0

      Good luck in finding a real unlimited data plan elsewhere. New real unlimited data plans do not exist as far as I know.

    9. Re:AT&T -- pushing away their loyal customers by farble1670 · · Score: 1

      Now they're trying their best to get rid of me. It may just work.

      How? By only charging you 1/2 the price and giving you unlimited data?

    10. Re:AT&T -- pushing away their loyal customers by Anonymous Coward · · Score: 0

      AT&T will be raising the rates every 6 months until it hits $100/mo like most other "not really unlimited plans"

    11. Re:AT&T -- pushing away their loyal customers by omnichad · · Score: 2

      I was AT&T since before they sold off wireless to Cingular

      That only sort of happened. AT&T Wireless was already spun off from AT&T when it was sold to SBC/Bellsouth (Cingular). Then SBC bought AT&T and renamed itself AT&T. Then bought Bellsouth and renamed Cingular to AT&T.

      Chart form: https://www.att.com/Common/mer...
      Video explanation: http://www.ebaumsworld.com/vid... (Sorry, no longer on Youtube)

    12. Re:AT&T -- pushing away their loyal customers by Wycliffe · · Score: 1

      Good luck in finding a real unlimited data plan elsewhere. New real unlimited data plans do not exist as far as I know.

      I have an unlimited sprint hotspot. I use it as my only internet. It's not super fast where I live but it's the only thing that really works in the somewhat rural area I live in. I get about 1-2 meg down and 2-4 meg up (yes, faster upload for some strange reason). I only use about 50GB/month but I haven't noticed any slow downs at the end of the month so if there is a throttle, it either doesn't affect me in my area or it's above 50GB.

    13. Re:AT&T -- pushing away their loyal customers by Wycliffe · · Score: 1

      AT&T will be raising the rates every 6 months until it hits $100/mo like most other "not really unlimited plans"

      This may really be their plan. The would upset a lot of customers if they jumped the price to $100/month or just kicked everyone off but by doing a gradual increase, people will gradually move to other plans and aren't going to freak out about $5/month jumps. A slow "boil a frog" strategy to not upset too many people and have a backlash.

    14. Re: AT&T -- pushing away their loyal customers by Anonymous Coward · · Score: 0

      I'm so lucky. My unlimited everything with TMob is ONLY $86.

    15. Re:AT&T -- pushing away their loyal customers by Anonymous Coward · · Score: 0

      ...and viewing an "average" page of 10-20MB costs you 10-20 cents :-/

      It's like micropayments that all websites dream about... except Google Fi manages to charge you for it :-)

  3. I wanna be a freeloader by Anonymous Coward · · Score: 0

    I want to abuse AT&T Mobility but the disposable SIM cards are too expensive at $10 each and they only last 1 month if I conveniently neglect to pay and I have to activate each disposable SIM with a throwaway email? Too much trouble!

  4. I took AT&T's Advice by Notabadguy · · Score: 4, Funny

    I thought AT&T had some great points advocating switching away from a low-priced, unlimited data plan - so I switched. I realize not everyone will agree with me, and for those who don't - you can keep AT&T.

    1. Re:I took AT&T's Advice by Notabadguy · · Score: 2

      Modded troll for trolling AT&T. Ouch.

    2. Re: I took AT&T's Advice by Anonymous Coward · · Score: 0

      You need to use sarcasm tags or the dimmer mods miss the joke.

      Dimmer mods: He saying switch from ATT to a lower cost provider once you lump the voice part in.

    3. Re:I took AT&T's Advice by esarjeant · · Score: 1

      I totally agree with this - we switched to Mobile Share Advantage and are saving $30 a month as we need to stay with AT&T until our phones are paid off. Much easier on our bill, we had rollover minutes but there were certainly months where we had to pay extra.

      Bonus that we have tethering now, and I'm not worried about going over on data - it'll just get slow and I've got WiFi everywhere that I need fast access. Heck, I'm pretty sure they were doing this before on my "unlimited" access anyway so why now have some extra pocket change while I'm at it...

      --

      Eric Sarjeant
      eric[@]sarjeant.com

    4. Re:I took AT&T's Advice by Anonymous Coward · · Score: 0

      Totally agree. Switched to the 16GB share plan and saved $30/month also. We have two phones and my wife had a 2GB plan while I had unlimited, and she ran over her data allowance 3 or 4 times last year, so this will be a lot better for both of us.

  5. "Grandfathered" by Anonymous Coward · · Score: 0

    I don't think that word means what AT&T thinks it means.

    1. Re:"Grandfathered" by bobbied · · Score: 1

      I don't think that word means what AT&T thinks it means.

      Old gets expensive.. That's what it means...

      The market is apparently moving away from "unlimited" data plans now that the transfer rates are above ISDN limits....I guess the carriers are starting to realize that bandwidth/data transfer costs money and the only folks who are still on their "grandfather's" data plan are soaking up more than their share of the costs for little or no profit.

      All these "grandfathered" plans should never have existed... AT&T was stupid to set any of the terms of a deal in stone for life. Any contract attorney would advise you NOT to do that. Apparently AT&T didn't listen to their lawyers or figured the good press now out weighs the eventual bad press later. I guess they can drive off users on these plans if they keep bumping up the rates.... But If I was them, I'd not do this creeping drip drip $5 ever six months thing and just announce that starting in 2 months it's going to be $1,000/month per device....

      --
      "File to fit, pound to insert, paint to match" - Aircraft Maintenance 101
    2. Re:"Grandfathered" by Anonymous Coward · · Score: 2, Insightful

      You're wrong. Raising it $5 at a time is probably one the smartest things any company has ever done.
      It helps them discover what people are willing to pay for a given amount of bandwidth (hint: they know how much each person is using).

      This will help them optimize the prices of future plans for maximum profit.

    3. Re:"Grandfathered" by skoony · · Score: 0

      "grandfather's" data plan are soaking up more than their share of the costs for little or no profit" You have it completely backwards. Limited plans increase their profits astronomically while reducing bandwidth to make room for all of your appliances to connect. You will be paying more for that privilege too. The cell phone companies and the carriers are light years ahead of all of us. They are going to maximize thru put and devices all while reaping in astronomical profits. It's all ones and zero's folks. .

    4. Re:"Grandfathered" by farble1670 · · Score: 2

      Any contract attorney would advise you NOT to do that. Apparently AT&T didn't listen to their lawyers or figured the good press now out weighs the eventual bad press later.

      I don't see the problem, as long as they can raise the price to whatever they want. They are in complete control.

    5. Re:"Grandfathered" by bobbied · · Score: 1

      My point here is that AT&T *should* have put time limits on all these contracts and never "grandfathered" them. Unlimited data should have been a time limited agreement that went away w/o the user renewing it with AT&T when the contract expired. That way they remain in control and can just stop offering Unlimited data plans any time they wished, wait for the current crop of existing contracts to expire and be done with the whole problem.

      That would have eliminated the whole negative PR problem we have now..

      --
      "File to fit, pound to insert, paint to match" - Aircraft Maintenance 101
  6. Hotspot by Anonymous Coward · · Score: 0

    For example, the newer plans support mobile hotspot connections allowing a phone's Internet service to be shared with another device.

    Maybe I missed something, but what's stopping you from doing that on the old plan?

    1. Re:Hotspot by ELCouz · · Score: 1

      I think the plan don't allow tethering ...

      This is because mobile hotspot and tethering use are not allowed with unlimited plans (except for Connected Cars). If you want to use your device as a mobile hotspot or for tethering, you'll need to change your plan or move the device to a plan that supports mobile hotspot and tethering.

    2. Re:Hotspot by Travis+Mansbridge · · Score: 1

      The carrier just blocks you from using your connection in this way unless you pay them an additional "tethering/mobile hotspot" fee for no reason whatsoever. It's ubiquitous among the major carriers now but not tough to get around.

  7. As a European... by Anonymous Coward · · Score: 0

    I just have to tell you that your mobile plan pricing is completely bonkers. You're getting absolutely fleeced. How the hell do you let them get away with these prices?

    1. Re:As a European... by Calydor · · Score: 2

      Depends a bit on which European country, mind you.

      In Denmark, a new plan called Plenti offers unlimited minutes, texts, and data for 119 DKR (approximately 17-18 USD) per month. If you tether they cap that data at 50 GB per month.

      Meanwhile in Germany, just thirty minutes from the Danish border, Vodafone very kindly upgraded my phone's data plan last month from 200 MB per month to 500 MB per month, and I pay some 20 or 25 Euro (same in USD, basically) per month for that crap.

      --
      -=This sig has nothing to do with my comment. Move along now=-
    2. Re:As a European... by Travis+Mansbridge · · Score: 2

      Telecommunications in the US are controlled almost solely by a cartel of major players that do not prefer to compete on pricing.

    3. Re:As a European... by Anonymous Coward · · Score: 0

      That sounds like socialism or something, companies ripping of consumers and having religious beliefs is the benefit of small government. We cant have anything that benefits the customers like fast cheap internet or low priced cell phone plans, its the first step to implementing Shakira law.

    4. Re:As a European... by PingSpike · · Score: 1

      Its pretty hard to get upset about our mobile phone prices when they're placed against the backdrop of our bankrupting and life destroying healthcare and college education prices.

  8. Real reason AT&T raised the rates. by Anonymous Coward · · Score: 3, Insightful

    Because Fuck You that's why.

  9. Way to drive away your most loyal customers by thebrieze · · Score: 3, Insightful

    Oh AT&T, you could've had me as a life long customer. I only use a reasonable amount of data, but the allure of my unlimited plan would have kept me bound to you for life. Instead you are pricing out your most loyal customers. Once the limited data plans becomes more price competitive than than the grandfathered unlimited plan for the amount of data I typically use, I will certainly be evaluating all options open to me.. And I may choose Verizon for better service or TMobile for better international roaming and more/unlimited data.

    1. Re:Way to drive away your most loyal customers by mmell · · Score: 1

      Look at it this way . . . increase your monthly by $5.00. Next month, it's $10.00. The month after that, $20.00 . . . soon, your plan will by YU-U-U-GE!

    2. Re:Way to drive away your most loyal customers by Anonymous Coward · · Score: 0

      Yep, what an unbelievably dumb move. I've kept my family on AT&T for 10 years to keep our 2 remaining grandfathered unlimited data plans even though 2 of them would rather switch to Verizon. I'm beginning to think it might just be worth the switch now.

    3. Re:Way to drive away your most loyal customers by slimjim8094 · · Score: 1

      This times a thousand. I've had my AT&T number since they were Cingular in 2005, and that was on my parents' account that had been AT&T since the early nineties - their first phone was AMPS, and I remember at age 6 or so them complaining about the new digital (D-AMPS) service's coverage range. I signed up for unlimited data for $20/mo on a Razr with HSDPA back in 2005 that I modded to have push IMAP and other smartphone-like capability years before the iPhone came out. AT&T is more expensive than others, but the service is quite good and very fast, and their network uses international standards. I primarily have the unlimited data because I just don't want to think about my use of cellular data - and until the recent price hikes you didn't save any money switching to a metered tier ($30 for unlimited, or $30 for 2GB? What do you think?).

      I may not walk right away, but eventually they will succeed in getting me off unlimited data. What I can tell you is they won't be steering me to one of their metered plans, they'll be steering me to T-Mobile where I can get comparable service for half the price, and even though I'd be allowed less full-speed data I wouldn't have any bill concerns which is all I ever wanted.

      --
      I have developed a truly marvelous proof of this comment, which this signature is too narrow to contain.
  10. Ahahaha! $5 really? by sims+2 · · Score: 3, Interesting

    Verizon hiked our unlimited prices by $20 you ATT UDPers have had TWO price hikes and you're still $10 short!

    --
    Minimum threshold fixed. Thanks!
    1. Re:Ahahaha! $5 really? by Anonymous Coward · · Score: 0

      Are you gloating about being ripped off?

  11. shitastic by Anonymous Coward · · Score: 0

    Raising prices while costs tumble. Thanks ATT.

  12. "Data" by Anonymous Coward · · Score: 0

    AT&T shut down their support for GSM850 less than a week ago. Thats one less "Voice or Data" network we have to worry about (damn you T-Mobile). The whole push that I see most carriers moving towards (and only makes sense) is LTE(-A) and IMS, which is all *data only*. The idea of separating "minutes" and "data" is archaic at best.

    Data is no longer a perk of a wireless carrier; its the standard in which they operate.

  13. Netflix 24x7 Retaliation by Anonymous Coward · · Score: 0

    ATT is literally shitting on customers that took the same gamble that they took on the iPhone when it came out. I'll pay their extra $5. But I think my cell phone is going to play Netflix every night while I am asleep. I've stayed around 5gb a month. 22gb here I come. Just because I can.

    1. Re:Netflix 24x7 Retaliation by Dog-Cow · · Score: 1

      I would literally love to see AT&T literally shit on your for using the word literally incorrectly.

    2. Re:Netflix 24x7 Retaliation by silentcoder · · Score: 1

      So assuming that what you mean by 'correct' usage applies - that would be what ? About 800 AT&T employees all lining up to take a dump on him one at a time ? Nasty...

      Thank goodness he used the it correctly then. As per the dictionary.com:
      4. in effect; in substance; very nearly; virtually:
      I literally died when she walked out on stage in that costume.

      Here is Webster's (you know for your Americans):
      2: : in effect : virtually

      There are two things you should learn from this discussion.
      Firstly - the common usage of "literally" as a an exclamation preceding hyperbole is, in fact, entirely correct English according to every dictionary. The second is this: American English has half as many meanings for the word "literally" as British English do - which means there are two MORE fully correct usages of "literally" you probably wouldn't even recognise if one bit you on the ass - and since /. has an international readership it's quite likely you may encounter them on these forums at times so you really ought to learn them.

      The only thing worse than grammar nazi's are grammar nazis who can't even get the grammar right.

      --
      Unicode killed the ASCII-art *
  14. My t-mobile plan by 140Mandak262Jamuna · · Score: 1

    It is not really unlimited, because after 2GB per line per month it gets throttled. But anyway I don't use much of data any way on the phone. 100$ for 4 lines. Including taxes i think it comes 125$ or so.

    --
    sed -e 's/Chuck Norris/Rajnikant/g' joke > fact
    1. Re:My t-mobile plan by XxtraLarGe · · Score: 2

      Total Wireless has a 4-line plan with 15 GB shared data for $100 a month (taxes included), and it drops to $95 per month if you get auto-refill.

      --
      Taking guns away from the 99% gives the 1% 100% of the power.
  15. Tmobile pricing by Anonymous Coward · · Score: 0

    Meanwhile I'm paying $100/month for 2 unlimited everything iPhones on Tmobile. The bonus for me is that messaging Abe data is free in most countries.
    I left ATT over 2 years ago and don't regret it. I had the grandfathered unlimited data plan, but it's not rally unlimited data because they slow the data to a trickle after a certain amount of usage. ATT is such a joke.

  16. In socialist Europe... by Anonymous Coward · · Score: 0

    In socialist Europe I have my "unlimited" data plan and everything else (phone, including international to fixed lines in most of the world, European roaming for 35 days a year) for 20 euros (a little more than 20 bucks).

  17. Still on contract with your unlimited plan? by Anonymous Coward · · Score: 0

    If you are, this gives you a way to terminate your side of the contract with no ETF
    I switched to t-mo this week, so this $5 cash grab will save me about $100 in ETF from ATT

    hope it was worth it for them
    10 year customer with 2 lines, avg under 8gig/line/mo

  18. Calendar Math is hard by coinreturn · · Score: 1

    ATT is raising the price of its grandfathered unlimited data plans by $5 a month, the second such increase in the past year..beginning in March 2017, it will increase by $5 per month," ATT said. The unlimited data price had been $30 a month for seven years, until ATT raised it to $35 in February 2016.

    No, it's not the second increase in a year.

  19. Loyalty customer by Anonymous Coward · · Score: 0

    AT&T you are making big bucks because of your loyal customers. You should treat your customers better than you do. We the loyal customer are the reason you are making big bucks. So we know we can't get phone service in other places. You should start being good to your customers you will end up loosing every thing one day because you are greedy

  20. Re: AT&T -- pushing away their loyal customer by Anonymous Coward · · Score: 0

    My contract expires June 1st 2017. Pretty sure I will be changing my carrier at that time. $135 per month, $140 after the upcoming increase, for one phone is absurd. I am retired.

  21. Re: AT&T -- pushing away their loyal customer by Anonymous Coward · · Score: 0

    Fuck att