Comments on: AT&T Refuses to Lower iPhone Data Plan Rates: Company “Happy” With Pricing

By: Phillip Dampier » Blog Archive » Apple’s Embarrassing Uncle Bell AT&T – Here’s $30 in iTunes Credit to Help You Forget

Thu, 25 Jun 2009 04:18:54 +0000

[...] the Cap! has peripherally followed the misadventures of Apple’s iPhone 3GS release by AT&T, which has managed to alienate [...]

By: Tim

Tim — Mon, 15 Jun 2009 20:34:21 +0000

I might of got an iPhone if the data plan wasn’t so outrageous. However, AT&T, isn’t the only cell phone provider that sticks it to ya with these smart phones. Most of them offer the phones but you must sign a 2 year contract and get the minimum data plan or higher, which is usually a small fortune itself. Then they make it where you can’t buy the phone right out by saying it costs $400+ over the 2 year lock in and data rate. They purposely overprice these phones so you go with what looks like a value. I would go as far as saying it is a type of bait-n-switch. Walked in just the other day looking for a new phone and even simple phones they were tacking on an extra $250-300 bucks to buy right out. I know for damn sure that that phone doesn’t cost that much to make. Another thing that drives me bonkers, sorry venting right now, is the proprietary connections on these phones, yet another scam. Don’t get me started on the ring tones….

My question to the masses is, why do you fall for this crap? Yes it is nice to have a phone with bells and whistles but really, how long are you going to take them fleecing you of every cent you have?

By: Michael Chaney

Michael Chaney — Mon, 15 Jun 2009 20:26:26 +0000

You are correct…..that IS pure speculation on my part. I have no concrete data to back up this claim, only the the average use cases of myself and about 5 or so friends.

All of the friends I hang out with have WiFi at their houses, so whenever we’re hanging out at a house, all the iPhone traffic is over the house WiFi network. My 60-70% figure is a rough estimate of the amount of time my iPhone is used for data while either my own or a friend’s house, or at work. In actuality that figure is probably more like 70-80% of the time for me personally. I’m still on the old 2G Edge network, so for time efficiency, I save most of my data-intensive usage (app downloads/updates) for when I’m on a WiFi network.

This type of usage also points out yet another problem with Internet caps. It’s possible to throw a party and invite all your fiends over just to have them all blow away your 60 GB/mo cap with their WiFi-enabled smartphones.

By: Phillip Dampier

Phillip Dampier — Mon, 15 Jun 2009 19:02:20 +0000

I would be surprised if they released the raw data at all. Companies usually hold tight with this kind of information, unless they are using it to justify something they want to do.

Personally, I wouldn’t even consider an iPhone because of the price of the service plan that goes with it right now. That is the thing that guarantees I will stay out of the market.

I think this whole thing is another case of “exclusive” access = “exclusively high pricing.”

I’m also a Verizon customer, and see no compelling reason to switch to AT&T. When the iPhone becomes available on Verizon’s network, my interest in it will be driven by one factor – the price of the service plan and its limitations. If it’s priced to capture every nickle out of someone for the vanity of being seen with an iPhone, I won’t be interested. If it’s priced to compete with other smartphones on the same types of plans, I might be. I’m willing to pay slightly more to obtain the phone itself, but not interested in paying a higher price for the service plan to go with it.

I have no reason to be “seen” wearing one. I keep cell phones and players in my pocket anyway.

By: Merlin

Merlin — Mon, 15 Jun 2009 17:44:38 +0000

That’s pure speculation. Until actual data is released we can’t know that for sure, although it’s entire possible considering the data plans have pathetically low 5GB data caps (especially when compared to other countries). Either way it doesn’t change AT&T’s monopoly over what is considered the premiere smartphone by a longshot.

By: Michael Chaney

Michael Chaney — Mon, 15 Jun 2009 16:00:53 +0000

Keep in mind that although iPhone users may use 5x more data than the typical smartphone user, I would say that around 60-70% of the time that data is coming over a WiFi network and not the AT&T Edge or 3G network. I would posit that the typical iPhone user doesn’t use much more on-network data than any other smartphone user

By: Merlin

Merlin — Mon, 15 Jun 2009 15:55:17 +0000

In fact, in many ways they do. iPhone users use five times as much data as typical smartphone users. Because the iPhone is tied to one cell phone provider, unlike all over Europe and Asia, people can’t choose from competing pricing plans if they want the iPhone. Whatever AT&T gives them is what they get.

By: Michael

Michael — Mon, 15 Jun 2009 15:49:04 +0000

Sure it sucks, but AT&T is not being “evil” for not reducing their prices. It’s not like they have a monopoly over the smartphone market.

By: Phillip Dampier

Phillip Dampier — Sun, 14 Jun 2009 18:33:21 +0000

That’s what happens when you write articles at 2:00 in the morning and your internal proofread just breezes right on by.

I should get a volunteer editing corps who can automagically fix my occasional lapses in grammar/wording.

By: Steve Switzer

Steve Switzer — Sun, 14 Jun 2009 16:28:44 +0000

Phil – you may wish to correct this line:

“AT&T has enjoyed significant revenue from their exclusive arrangement with AT&T.”

Feel free to delete my comment after doing so.