Posted on 09 June 2008, at 7:24 pm, by Wayne Schulz

I’ll keep this short and sweet because I think we’re all suffering a little bit of iPhone overload. When Apple announced the 3G iPhone today I couldn’t help sensing that while everything looked good on the surface, that the devil would be in the details. Sure enough now as we have a chance to look at the phone plans for the 3g iPhone there’s some hidden gotcha’s. The first one is that the 3g data plan rises by $10 per month. Now AT&T has provided additional details not in Steve Jobs’ keynote. The BoyGeniusReport web site has the details. Info on the next page.
According to web site BoyGeniusReport which claims to have gotten their hands on an internal AT&T store memo:
* iPhone 3G will be activated at point of sale when the device is purchased in store.
* Return period has been changed from 14 days to 30 days
* $199 and $299 pricing is for new activations or qualified upgrades with a 2-year agreement
* 2G iPhone data rate plans will remain available for 2G device suntil further notice
* The new iPhone 3G data plan is $30/month and includes unlimited data and visual voicemail
* There is not a no commitment price. This means you can’t just walk in and bang $500 on your credit card and walk out.
* If you are an existing iPhone customer in good standing, you will be able to extend your contract for two years when the iPhone 3G launches and get the ill-na-na $199/$299 price point. Doesn’t matter when you bought an iPhone either.
* AT&T and Apple stores “unbrick” the iPhone 3G at time of purchase, but for some reason if that doesn’t happen, you’ll be required to use iTunes at home.
* Pre-paid and Pick Your Plan will not be allowed on iPhone 3G
* Device purchase limit remains at (3) per customer in AT&T stores.
* 2G iPhones to remain as demo models in AT&T stores “until further notice”.
* AT&T stores will get rate brochures, 22 x 28 posters, and window banners
* Launch day will mirror last year’s launch. This includes extended store hours, crowd controls, etc. Security will be provided to stores requesting armed police or guards.
* AT&T is working with Apple to roll out GPS-enabled applications.
Read the full details and the original AT&T email memo at BoyGeniusReport
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June 9th, 2008 at 9:55 pm
The data plan may have gone up by $10 a month, but you are getting a better, more capable device for $200 less. So, $240 more for faster data over the course of a 2 year plan. It’s hard to argue that $10 more for data is a rip-off.
I’m also surprised that it took them until now to allow unactivated device sales.
June 10th, 2008 at 9:06 am
Awesome… so I have to either get a new number, OR I have to kill my old number to get one of these things. Just great. There has to be a way to work this out, especially for those that want one, who aren’t eligible for an upgrade yet (like me…)
If they leave things like they did last year (the geek stampede), it may be months before the “regular people” like me, get one… great! I just don’t have the time to go stand in line, with the new job. So you either have to go to an Apple store and wait in line, or go to an AT&T store and wait in line. Nice…
June 10th, 2008 at 9:19 am
It looks like existing users will be able to upgrade at the new customer price:
“If you are an existing iPhone customer in good standing, you will be able to extend your contract for two years when the iPhone 3G launches and get the ill-na-na $199/$299 price point. Doesn’t matter when you bought an iPhone either.”
@doogald – I will argue that the extra $10 is a rip off because the typical things one would purchase a 3g plan for — namely data streaming — are prohibited. I don’t really need 3g to pull down my calendar or get email upgrades.
June 11th, 2008 at 12:44 pm
I don’t think the $10 a month is a big deal. All At&t BlackBerrys are $30 a month, and will probably be $40 with the release of the 3G Bold. Why? At&t claims that the BlackBerry is $30 a month despite being an EDGE only device due to the BlackBerry Internet Service access you get. Ok, well if $10 is the increase for BIS, and $10 is the increase for 3G… Yeah, speculation, but I am willing to bet it happens.
Aside of that, all Windows Mobile PDAs have a $30 data plan as well, because they are all 3G. Even if you live in an area that only gets EDGE data coverage, you still have to pay for the $30 3G plan.
The iPhone has just been brought in line with the rest of At&t’s PDA/Smartphone data plans. Yeah, it’s rough for existing iPhone owners that are upgrading, but it isn’t terribly tragic for everyone else.
Aside from all the data discussion is the price for existing At&t customers that are using non-iPhone devices. Reports are now coming in that the price will in fact be $199 and $299 for everyone, regardless of contract status and what phone you currently use. Until I see these reports mirrored by more reputable sources, I am taking them with a grain of salt. It is a good sign though…
By the way, Wayne. Your “Reasons RIM will peak this year” article irritated me the first time I read it, and I commented in kind. It also got me thinking, so I watched the March 6th keynote and had my eyes opened a bit. They have gone from slightly open to fully open the past few weeks and I have decided to ditch my BlackBerry as well. The future of the iPhone is just too promising when you look at its real capabilities. Seeing as you were one of the people that started me on my “road to discovery,” I have to ask… You aren’t rethinking your original stance on the subject due to this data thing, are you?
June 11th, 2008 at 12:58 pm
@CrazEtooN – No, I’m not re-thinking returning to a Blackberry. I’m still 100% using the iPhone. If I do begin using a Blackberry again it would only be to test software for GearDiary.
The thing I miss most about the Blackberry? Surprisingly it isn’t the keyboard or email. It’s the built in password program. I didn’t realize how much stuff I had stored in there (mostly client login information).
I think the AT&T data increase is troubling because Apple limits what you can run on that data. Unlike other PDA data plans (which have no such restriction) Apple is disallowing companies from marketing apps that may stream data (either via EDGE or 3G).
So I guess I am questioning exactly what 3G is going to provide? My observation is that web browsing on wi-fi is not THAT much faster — and certainly 3G is going to clock in slower than a full wi-fi connection.
I just think AT&T is nickle and diming people.