Cost of iphone service?

[wubagel]

Does anyone have any clue or speculation as to how much service for the iphone will be? I don't want to be paying an obscene amount every month after I bankrupt myself to buy it.

[wjp09]

Seeing as there has been a prepaid rumor, I assume that it will run just as any other phone would. Then ontop of that if you wanted *optional* you could add unlimited Data just like you could add a text messege package to your current phone plan. I would say a safe bet would be 20-40 for unlimited internet. Other phone companies that have unlimited start at 20 such as the sidekick with tmobile. Verizon has an unlimited also.

[archer6]

As an AT&T customer I would say that since this is a joint venture between Apple and AT&T, it's very hard to estimate what the data plan or plans may be priced at.

If it were AT&T alone the phone would be subsidized to reduce the price to the consumer, just as they do with every other smart phone they sell.

However Steve Jobs dictated that the iPhone not be subsidized, therefore everyone will be paying full price for the phone, even if they are entitled to an upgrade price on every other phone in the AT&T inventory.

So, if we apply that same line of thinking, then it's entirely possible that Steve dictated the data plan to be priced higher than the others. This would be in line with his thinking about the "superiority of the iPhone" and thus one must pay a premium price.

Time will tell.

[wot_fan]

So, if we apply that same line of thinking, then it's entirely possible that Steve dictated the data plan to be priced higher than the others. This would be in line with his thinking about the "superiority of the iPhone" and thus one must pay a premium price.

Time will tell.I think you have it backwards. I think it is much more likely that Steve would push to have a lower priced data plan. Apple is trying to introduce an internet capable phone to many customers that have not owned one before. Many of these customers are going to have sticker shock at the $20/month data price. I don't think Steve is willing to risk sales because the data plan is too expensive. For me, that is the only thing that could keep me from getting the iPhone.

Let's also not forget that the iPhone has wifi and EDGE. Both of these should minimize the amount of AT&T's bandwidth each iPhone uses. This along with the fact that AT&T does not have to subsidize the iPhone should make a lower priced plan more acceptable to AT&T.

Of course, this is just my opinion and maybe even wishful thinking ;).

[wjp09]

^woah are you saying 20 is too much or too little?

[wot_fan]

^woah are you saying 20 is too much or too little?I think $20 for unlimited is the most they can charge without risking losing potential customers. They may charge more, but I doubt it will be above the $40 price that AT&T currently charges for PDA phones.

[wjp09]

Hopefully its only $9.99

[archer6]

I think you have it backwards.
Of course, this is just my opinion and maybe even wishful thinking ;).

I wish I did have it backwards. I just read (sorry forgot to capture the link) where it was Steve that forced AT&T to sell the iPhone at full price.

An example is, I'm currently using a new BlackBerry that retails for $499.00, AT&T discounts it to $199.00 so that's all I had to pay.

AT&T wanted to do the same with the iPhone so they could sell more and give a better deal to their customers but Steve said the customers would be happy to pay the higher price.

Nice eh?

However as a long time Apple customer, I used to being overcharged. No sense in complaining, just sharing with other people here on the forum so they know what to expect.

I just bought a new MacBook Pro for my personal use, and a New Lenovo ThinkPad for work. Both of these are configured the same. Same processor, same ram, same graphics card, same hard drive, both with 3 year warranties.

I paid $711 dollars more for the MacBook Pro, than I did for the ThinkPad. While I love the Mac, I cannot see $711 dollars difference. $200 more perhaps but not $711.00

Oh well.... the price of admission to AppleWorld

Cheers....:wink:

[archer6]

I think $20 for unlimited is the most they can charge without risking losing potential customers. They may charge more, but I doubt it will be above the $40 price that AT&T currently charges for PDA phones.

I pay AT&T $29.99 per month for an unlimited data plan (no video) for my BlackBerry.

I pay AT&T $39.99 per month for an unlimited data plan (with video) for my 3G Motorola RAZR V3xx.

So that will give you an idea of where the pricing is currently for two different types of phones.

Cheers....:smile:

[wot_fan]

Do you really think that AT&T is giving you a discount on a BlackBerry out of the goodness of their hearts? Their making that discount up in the service plans that you are buying with it.

I understand that Steve/Apple didn't want the iPhone subsidized. My hope is that instead of discounting the phone, AT&T will offer the data plan at a cheaper rate since they don't have to make up for a discount on the phone. I can't see any other reason for Apple not to want the phone subsidized since they make the same amount of money regardless of how much AT&T charges for the phone.

All this assumes that the iPhone will only be sold at the announced pricing with a mandatory 2 year contract. The recent rumors, if true, regarding the option to buy an iPhone without a contract change everything. If the iPhone costs the same with or without contract, there is no reason to sign a contract. If these rumors are true, I expect there to be a discount when purchased with a contract. There have been rumors to this affect, but I disregarded them up until now.

It will be interesting to see how this all plays out.

P.S. Thanks for the info on the data pricing. I currently have Cingular's smartphone unlimited plan (I think it is called medianet) which runs $19.99 for unlimited.

[archer6]

Do you really think that AT&T is giving you a discount on a BlackBerry out of the goodness of their hearts?

Where did it say that the discount is out of the goodness of their hearts?

What the post read is the discounted price was because the phone was "subsidized".

This is a common practice amongst ALL US carriers, Sprint, Verizon, T-Mobile, AT&T, Alltel, etc.

So it applies to every brand and every type of phone sold period. The BlackBerry was just an example because it's an expensive smart phone in the general price range of the iPhone.

How do you think the carriers are able to give away "Free Phones" ? Simple.... it's called subsidized.

Regarding your theory of them making up the difference in the fees for the data and voice plans. That too is incorrect. As every carrier charges extra for those services as well. They are all very close in data plan and voice plan pricing because of the the competition.

The reason you have a MediaNet plan for $19.99 per month is because if only offers "limited" access to the internet, even though you get unlimited data usage. It's not the full gateway to the net.

When one selects an unlimited smart phone, or BlackBerry, PDA plan it's full internet access, and unlimited data usage.

Hope this clears things up.

Cheers....:smile:

And I agree with you 100%, this is going to be one of the best Apple Movies of the year. Success?.....Or?

I'm rooting for Apple, but also being realistic. I am first and foremost Pro-Consumer. I have a hard time when a Corporation like Apple engages in price gouging. Look at Apples current stock price. Many people are obviously eager to fork over their money as they believe the Apple Hype Machine.

After all, why do you think Apple always has so much cash? They don't grow it.

They take it from their customers and laugh all the way to the bank....:tounge:

[Spin This!]

My hope is that instead of discounting the phone, AT&T will offer the data plan at a cheaper rate since they don't have to make up for a discount on the phone.
That would mean AT&T would be sharing profits on the phone with Apple... which is not how I think the agreement works. Apple provides the phone (and thus the profit); AT&T provides the service. I hardly doubt AT&T is going to offer any less expensive plans but that remains to be seen.

[archer6]

That would mean AT&T would be sharing profits on the phone with Apple... which is not how I think the agreement works. Apple provides the phone (and thus the profit); AT&T provides the service. I hardly doubt AT&T is going to offer any less expensive plans but that remains to be seen.

I'm with you, and I believe you have it correctly.

First of all this concept of "making it up by charging more for whatever" is incorrect. This is coming from people who do not understand what a subsidy is. (see the dictionary).

There is nothing to have to "make up for" no matter what price the phone is sold for, or who get's what share of the profits from the phone. We are talking about two different categories of income. One from the hardware (phone) and one from the service (carrier).

It's as basic as your car, and the gasoline for your car. Two different considerations altogether.

AT&T is a massive company, that's been around far longer than Apple. Also unlike Apple, AT&T is Not going to price gouge their customers because their business is too competitive. If the data plan pricing is left up to AT&T it will be in line with everyone else's data plan pricing.

So, if it ends up that the data plan for an iPhone is More Expensive than any other data plan, Do Not Forget To Thank Apple For Dictating The High Price.

[wot_fan]

Where did it say that the discount is out of the goodness of their hearts?

What the post read is the discounted price was because the phone was "subsidized".

This is a common practice amongst ALL US carriers, Sprint, Verizon, T-Mobile, AT&T, Alltel, etc.

So it applies to every brand and every type of phone sold period. The BlackBerry was just an example because it's an expensive smart phone in the general price range of the iPhone.

How do you think the carriers are able to give away "Free Phones" ? Simple.... it's called subsidized.

Regarding your theory of them making up the difference in the fees for the data and voice plans. That too is incorrect. As every carrier charges extra for those services as well. They are all very close in data plan and voice plan pricing because of the the competition. The voice and data plans are priced in such a way so the company makes money. For this to happen they have to be priced high enough for them to make a profit after recouping the costs of all of their expenses including the cost of subsidizing phones. You must sign a contract to get a subsidized phone so they are guaranteed that you will use their service for long enough for them to recoup their subsidy. Competition from other providers only forces them to reduce their profit margins, not eliminate them.

For Cingular to recoup the $300 dollars they discount the BlackBerry they need to make $12.50 every month more (assuming a 2 year contract) than if they had not subsidized the phone. I realize this number is a little exagerated since Cingular didn't pay $499 so they really only need to make up the difference between what the pay for the phone and what they charged you, but you get the idea.

As I said, since theoretically the iPhone is not getting subsidized, AT&T should be able to charge less for their data plans since they don't have to recoup a subsidy.

The reason you have a MediaNet plan for $19.99 per month is because if only offers "limited" access to the internet, even though you get unlimited data usage. It's not the full gateway to the net.

When one selects an unlimited smart phone, or BlackBerry, PDA plan it's full internet access, and unlimited data usage.
I am not sure this is true. I have not found any web pages that I am unable to visit with my current plan. I was under the impression that the difference between my plan and the PDA plan had to do with the efficiency of the server and therefore bandwidth. It doesn't really matter to me though since the browser on my WM5 phone is too painful to use for long :frown:.

First of all this concept of "making it up by charging more for whatever" is incorrect. This is coming from people who do not understand what a subsidy is. (see the dictionary).

There is nothing to have to "make up for" no matter what price the phone is sold for, or who get's what share of the profits from the phone. We are talking about two different categories of income. One from the hardware (phone) and one from the service (carrier).I don't think you understand what a subsidy is. AT&T is paying a portion/all of the cost of the phone for you. For them to turn a profit they need to make more on the service they sell you than if they had not payed a portion of the cost of your phone.

I don't understand how you can say "There is nothing to have to "make up for"". Who do you think incurs the cost of the the phone when AT&T gives a free phone to a customer for signing a 2 year contract. AT&T pays for the phone instead of the customer. As I said above, the contract assures AT&T that you will be with them long enough for them to recoup that expense.

[archer6]

I don't understand how you can say "There is nothing to have to "make up for"".

Actually it's quite simple, basic business 101 if you will. First of all I will keep it simple and easy to understand.

Let's say we are talking about a phone that retails for $399.00. There is a lot of profit in that phone. The manufacturer shares some of that with the carrier. They have a strategic relationship, as the only way for the mfg to sell the phone is through the carriers. It's the mfgs way to entice the carrier to buy a lot of their phones.

If the subsidized price to the customer is $199.00 then that amount more than pays for the phone as the actual cost of the phone is approx. $65.00

Therefore the mfg gets paid for the phone plus a small profit and the carrier breaks even on the phone. More importantly for the carrier is they either just signed up a new customer, or they extended the contract of an existing customer. Either way they make a massive profit. Their money comes from selling the service, not from selling the phone, at any price for that matter.

The manufacturer makes money on volume and the carrier makes a lot of profit off the customer each month, as they are selling airtime and data usage that costs them very little. They already have the network, they have been profiting from services for years. So they have a huge profit margin already. Then because they know that most people will pay the price, they use the same mentality that you are believing, which is that they have to "get their money by locking you into a 2 year contract". Nothing could be further from the truth.

The reason they make customers sign on to a 2 year contract is "customer retention" and guaranteed income for them. This simply guarantees them that you are not going anywhere for 2 years. Much like a lease on a car, you are locked in. If you terminate the contract, you pay the ETF = Early Termination Fee. So they get you coming and going.

Here's another example:
Let's say that you have a regular cell phone and you only make phone calls, therefore your only expense is airtime. You have a plan which gives you 1400 minutes per month for $79.99.

Now you don't really believe that it costs your carrier $69.99 to provide that service do you? And that they only make $10 per month profit?

The reality is that the carriers cost to provide that service for you is pennies on the dollar, therefore they reap a huge profit from every customer, every month.

Plain and simple........:smile:

[joe]

I just bought a new MacBook Pro for my personal use, and a New Lenovo ThinkPad for work. Both of these are configured the same. Same processor, same ram, same graphics card, same hard drive, both with 3 year warranties.

I paid $711 dollars more for the MacBook Pro, than I did for the ThinkPad. While I love the Mac, I cannot see $711 dollars difference. $200 more perhaps but not $711.00

Oh well.... the price of admission to AppleWorld

Not doubting, but I'm having a hard time finding a Thinkpad that has similar specs to a MBP. Can you point me to the model and specs you are comparing? For what Apple offers in the MBP the price is not bad at all. I think this applies to the argument that the iPhone might be high-priced just because it has an apple on it; an outdated argument.

[JeffBobula]

$40 a month is too much for just EDGE. 3G? Id fork it up. IMO :frown:

[wjp09]

$40 a month is too much for just EDGE. 3G? Id fork it up. IMO :frown:

3G is a battery killer.

[wubagel]

So all the subsidization talk aside, does the data plan include everything I would want/need with my phone...including minutes, texts, etc. Or is the data plan an add-on. In other words, if it is, what will the total service run me per month?

[archer6]

So all the subsidization talk aside, does the data plan include everything I would want/need with my phone...including minutes, texts, etc. Or is the data plan an add-on. In other words, if it is, what will the total service run me per month?

As a long time Cingular / AT&T customer, having many phones and a few plans currently, here is how the rate plans typically are setup.

1) You choose a rate plan for Voice, like 1400 minutes for example (or whatever works for you)
2) Then you choose your data plan which in the case of owning a smart phone, BlackBerry or iPhone you best bet is to choose the plan with unlimited data usage.
3) The third and final component is the text plan. Here again you have a few choices of packages. I don't do a lot of texting so I get the 200 message plan for $4.99 mo.

These are all plans setup by AT&T. However in the case of the iPhone Apple has setup the contract between them and AT&T so that Apple has a lot of control. Therefore I would not be suprised to find the monthly cost to operate an iPhone to be dictated more by Apple than AT&T.

The only way we are going to know is once it's announced.

[wot_fan]

Alright, lets take this take a look at this.

Actually it's quite simple, basic business 101 if you will. First of all I will keep it simple and easy to understand.

Let's say we are talking about a phone that retails for $399.00. There is a lot of profit in that phone. The manufacturer shares some of that with the carrier. They have a strategic relationship, as the only way for the mfg to sell the phone is through the carriers. It's the mfgs way to entice the carrier to buy a lot of their phones.

If the subsidized price to the customer is $199.00 then that amount more than pays for the phone as the actual cost of the phone is approx. $65.00Yes this is sort of true. There is a lot of profit in electronics, but not as much as you seem to think. A 615% markup is not realistic.

Anyway, the manufacturer does not share its profit with the carrier. What it does do is sell its product to the carrier for a reduced price based on quantity. The carrier then marks up the price by a certain percent thereby defining the price of the phone when bought without a contract.

To make this easier for you to understand, lets look at the example of a free phone with 1 year contract example. The carrier buys the phone from the manufacturer for a discounted price due to the quantities involved. At this point, the carrier is in the hole for the price of the phone. Lets say the phone cost the carrier $30. The carrier must recoup this expense over the term of the contract. If you prorate it, they must recoup $2.50 per month to cover the cost of the phone. So if they hadn't given you a phone, they would be making $2.50 more off your account or they could charge you $2.50 less and make the same profit. Obviously, the bigger the size of the subsidy the higher this figure gets.

Therefore the mfg gets paid for the phone plus a small profit and the carrier breaks even on the phone. More importantly for the carrier is they either just signed up a new customer, or they extended the contract of an existing customer. Either way they make a massive profit. Their money comes from selling the service, not from selling the phone, at any price for that matter. I agree with what you say here for the most part. In my example however, (and in yours if you use realistic profit margins) the carrier does not break even on the phone.

The manufacturer makes money on volume and the carrier makes a lot of profit off the customer each month, as they are selling airtime and data usage that costs them very little. They already have the network, they have been profiting from services for years. So they have a huge profit margin already. Then because they know that most people will pay the price, they use the same mentality that you are believing, which is that they have to "get their money by locking you into a 2 year contract". Nothing could be further from the truth.I agree that the carrier makes their money from the service. I am not sure I agree with your statement that they have huge profit margins. Yes the network is in place, but it took a lot of cash to put it in place and the money needs to be recouped. It also does not maintain/upgrade itself. There are a tremendous amount of resources required to keep the network running smoothly. While I am sure they are making an acceptable profit, I don't think it is the gold mine you seem to think it is.

The reason they make customers sign on to a 2 year contract is "customer retention" and guaranteed income for them. This simply guarantees them that you are not going anywhere for 2 years. Much like a lease on a car, you are locked in. If you terminate the contract, you pay the ETF = Early Termination Fee. So they get you coming and going. As you pointed out customer retention is important for them. Keeping customers satisfied with your service is what keeps customers, not contracts. You are right that it there is a penalty for leaving a contract early, but that isn't enough to keep most dissatisfied customers from leaving. And those dissatisfied customers that aren't willing to pay the ETF will leave as soon as their contract is up. Either way a carrier is not going to stay in business long if they don't keep a majority of customers satisfied.

Here's another example:
Let's say that you have a regular cell phone and you only make phone calls, therefore your only expense is airtime. You have a plan which gives you 1400 minutes per month for $79.99.

Now you don't really believe that it costs your carrier $69.99 to provide that service do you? And that they only make $10 per month profit?

The reality is that the carriers cost to provide that service for you is pennies on the dollar, therefore they reap a huge profit from every customer, every month.

Plain and simple........:smile:


I think you are drastically underestimating the overhead involved in maintaining the network as well as a company the size of AT&T. If you factor in all of the expenses you would see that their profit margins are no where near as big as you seem to think.

I am pretty sure you are not going to change your way of thinking about this and I have yet to see anything posted that has changed my mind so I think we are going to have to agree to disagree. Since I come here to talk about the iPhone, that is what I am going to get back to :). Reply if you want and I will read your response, but I am done posting about subsidies ;).

[archer6]

1) I am pretty sure you are not going to change your way of thinking about this and I have yet to see anything posted that has changed my mind so I think we are going to have to agree to disagree.

2) Since I come here to talk about the iPhone, that is what I am going to get back to :).

1) It's been my experience as the moderator of two other forums, that the sole purpose of an open forum environment like this is to share viewpoints and have an open discussion. Different opinions and experiences are welcomed. At no point is there an expectation that everyone will agree. That would not be normal. Counterpoints are a valuable component to any discussion.

It might serve you best not to take it so personally as that is not the intent of an open forum. Secondly, it would also be of benefit to your credibility if you did not speak for others, or assume "you know, that they are not going to change their mind".

How is it, that you know this? Sounds like an assumption on your part, and we all know the definition of assuming. This dialog on your part, suggests that you expect them to change to fit your values and beliefs. Therefore we would all be clones, how boring.

I find lively debates and sharing of experiences particularly fun, beneficial, and part of a customary practice in our society.

2) We are all here to talk about the iPhone.

Open forums are not about one person, they are about the entire group and the topics of discussion. Like any other group of people who gather to participate and contribute their experiences and viewpoints, it's about community and the spirit of sharing.

Thanks for sharing your position, which I respect and enjoy hearing about.

Cheers...:laugh2:

[ColsTiger]

1) It's been my experience as the moderator of two other forums, that the sole purpose of an open forum environment like this is to share viewpoints and have an open discussion. Different opinions and experiences are welcomed. At no point is there an expectation that everyone will agree. That would not be normal. Counterpoints are a valuable component to any discussion.

It might serve you best not to take it so personally as that is not the intent of an open forum. Secondly, it would also be of benefit to your credibility if you did not speak for others, or assume "you know, that they are not going to change their mind".

How is it, that you know this? Sounds like an assumption on your part, and we all know the definition of assuming. This dialog on your part, suggests that you expect them to change to fit your values and beliefs. Therefore we would all be clones, how boring.

I find lively debates and sharing of experiences particularly fun, beneficial, and part of a customary practice in our society.

2) We are all here to talk about the iPhone.

Open forums are not about one person, they are about the entire group and the topics of discussion. Like any other group of people who gather to participate and contribute their experiences and viewpoints, it's about community and the spirit of sharing.

Thanks for sharing your position, which I respect and enjoy hearing about.

Cheers...:laugh2:

Which other forums do you moderate?

[BoxKrait]

You know.. If you don't like what the thread is talking about.. Don't post in it.

You don't have to post in every single thread in here.

[ColsTiger]

You know.. If you don't like what the thread is talking about.. Don't post in it.

You don't have to post in every single thread in here.

Who are you talking to?

[BoxKrait]

Who are you talking to?
Forgot to quote.
Though it was obvious though.
wot_somehting.

[ColsTiger]

Forgot to quote.
Though it was obvious though.
wot_somehting.

No problem. Just wanted to make sure I didn't do something to offend anyone.:wink:

[wot_fan]

You know.. If you don't like what the thread is talking about.. Don't post in it.

You don't have to post in every single thread in here.Forgot to quote.
Though it was obvious though.
wot_somehting.What are you referring to? Where did I say that I didn't like what this thread was talking about? Are you sure your comment was directed at me? If so, kindly explain what you meant.

[ColsTiger]

What are you referring to? Where did I say that I didn't like what this thread was talking about? Are you sure your comment was directed at me? If so, kindly explain what you meant.

I think he was replying to archer.

[thepepes]

That's a really really good point. There would be no reason to buy the longer contract unless the phone was discounted. I've been a Cingular customer since 2001 and I've never once seen a phone sold there that didn't have at least a rebate if bought with a contract. Usually, the phone would have the best discount if bought with a 2-yr renewed contract, next best with a new 2 yr contract (or the same), and a lesser discount for a 1 yr contract. If they all-of-a-sudden changed it, I think it would make many customers upset...especially since the largest clientele buying iphones are going to be kids or adults not in the business world - thus probably not making as much money. I know I wouldn't go with another 2 yr contract unless they had a reason it would be better than the freedom of a 1 yr only contract... or none at all.

[Cantwait4iPhone]

That's a really really good point. There would be no reason to buy the longer contract unless the phone was discounted. I've been a Cingular customer since 2001 and I've never once seen a phone sold there that didn't have at least a rebate if bought with a contract. Usually, the phone would have the best discount if bought with a 2-yr renewed contract, next best with a new 2 yr contract (or the same), and a lesser discount for a 1 yr contract. If they all-of-a-sudden changed it, I think it would make many customers upset...especially since the largest clientele buying iphones are going to be kids or adults not in the business world - thus probably not making as much money. I know I wouldn't go with another 2 yr contract unless they had a reason it would be better than the freedom of a 1 yr only contract... or none at all.

This is a valid point. I think, and I know some will diasgree with me on this, that there will, as you mentioned, be at least some kind of rebate. It is still not too late for them to announce discounted prices when the contract is purchased. Maybe everybody is wrong, and $500+$600 are the costs without contract or rebates. That would be awesome, and we can only hope :laugh2:

[zed wheeler]

I wonder if ATT will offer a lower charge without the data feature. The advantage to me of an iPhone would the fusion of phone and PDA (and, to a lesser extent, the iPod). I really don't care about the email or WWW functions. Besides, if the iPhone has WiFi, one could surf the internet wherever free WiFi is available without using the cell to tap the internet.

[Hondamaker]

I wonder if ATT will offer a lower charge without the data feature. The advantage to me of an iPhone would the fusion of phone and PDA (and, to a lesser extent, the iPod). I really don't care about the email or WWW functions. Besides, if the iPhone has WiFi, one could surf the internet wherever free WiFi is available without using the cell to tap the internet.
That is my plan, to use the wi-fi aspect of the phone for internet. Have it in my house, many restaurants, the nearby mall, etc.

[Cantwait4iPhone]

Using the iPhone without a data plan might be an okay idea. The problem is, though, if there is a situation where there is no WiFi and you do not have a data plan. Then you're pretty much screwed :D


I guess my reasoning of it is that I want to take full advantage of the $600 gadget, and to do that I am willing to shell out an extra twenty a month. I wonder if they will require you have a data plan. Then it could get interesting. Hackers, start your hacking!

[Spin This!]

If the iPhone required a data plan, that would definitely burst the bubble for me. I know Apple wouldn't do this—why would they put Wi-Fi in at all then?

Apple is not in the data connectivity business—whether they admit to sharing profits with AT&T or not. I could really see Microsoft doing something this... Apple has generally been one of the "good guys".

[ATTingular]

Just a warning to people that will cancel your internet package and just use wifi: There have been people who cancelled data on their HTC 8525 (which also has wifi) but weren't aware a pay-per-use feature was on their account. They did not set the phone to use wifi only and racked up massive bills.

If you're going to use wifi only, make sure to ask CS to not put the pay-per use feature on. That does assume AT&T will require a data package, which they probably will.

[Hondamaker]

Using the iPhone without a data plan might be an okay idea. The problem is, though, if there is a situation where there is no WiFi and you do not have a data plan. Then you're pretty much screwed :D


I guess my reasoning of it is that I want to take full advantage of the $600 gadget, and to do that I am willing to shell out an extra twenty a month. I wonder if they will require you have a data plan. Then it could get interesting. Hackers, start your hacking!
I currently use Cingular, and I have no data plan, but if I do decide to get on the 'net, I just do what I have to do and get charged per kilobyte of usage. I don't do it a whole lot, tho.

[ebrunn]

I currently use Cingular, and I have no data plan, but if I do decide to get on the 'net, I just do what I have to do and get charged per kilobyte of usage. I don't do it a whole lot, tho.

You might want to get a data plan added to your plan, your prolly gonna start doing a "whole lot" on this thing.:wink:

[Hondamaker]

You might want to get a data plan added to your plan, your prolly gonna start doing a "whole lot" on this thing.:wink:
Agreed, but my wife's already unhappy with the fact that I'm gonna spend 500 bucks on another phone. (she's not a techie by any means)

[ebrunn]

Agreed, but my wife's already unhappy with the fact that I'm gonna spend 500 bucks on another phone. (she's not a techie by any means)

Did you mention to her that the iPhone has Cover Flow?:2cool:

[iphonenut]

i think this may answer the question everyone's talking about. (it also may turn a few people off to the phone). straight from the horse's mouth:
Q: Won't the full-powered browser hurt AT&T? People won't need to use its services as much — they'll just pull things from the Web, instead of calling directory assistance, for example.

A (Glenn Lurie, President of National Distribution for AT&T): No, actually it won't. I think it will be great for us, and here's why. One of the things with this device — people are going to be asked to have an unlimited package — people are going to have to have a package with us to browse. That's one good thing for everybody.

http://seattletimes.nwsource.com/html/businesstechnology/2003724582_brier28.html

[Cantwait4iPhone]

You might want to get a data plan added to your plan, your prolly gonna start doing a "whole lot" on this thing.:wink:

Yeah, that's kind of what I meant. I want to take full advantage of this thing and not be limited by not having a data plan or by having to pay huge bills :D.


And honda, you said 500 bucks. Get the 600 buck version :D

[joe]

i think this may answer the question everyone's talking about. (it also may turn a few people off to the phone). straight from the horse's mouth:
Q: Won't the full-powered browser hurt AT&T? People won't need to use its services as much — they'll just pull things from the Web, instead of calling directory assistance, for example.

A (Glenn Lurie, President of National Distribution for AT&T): No, actually it won't. I think it will be great for us, and here's why. One of the things with this device — people are going to be asked to have an unlimited package — people are going to have to have a package with us to browse. That's one good thing for everybody.

http://seattletimes.nwsource.com/html/businesstechnology/2003724582_brier28.html

I like unlimited. Is it bad in that it will be pricey?

[iphonenut]

I like unlimited. Is it bad in that it will be pricey?

i don't mind it either. let's just hope that it's the $20 plan and not the $40-50 plan.

[Cantwait4iPhone]

I like unlimited. Is it bad in that it will be pricey?

Unlimited plans are a great way to go, as long as you will use them to the extent that they will be worth it. It's like when you go to a theme park and buy all the extras. They are worth it as long as you use them.

Now for the cost part of it. The unlimited plan will likely be more expensive, yes, but we can only hope it will be $20 a month. It seems to me, as has been mentioned in other threads or maybe this one :smile:, that making it much more than twenty dollars a month would push away a large group of consumers, so I am hoping they will be smart about this and price the unlimited plan at $20. So, as long as you will use the iPhone enough and browse the internet a good amount, the unlimited data plan might be a good option for you.


I still haven't found anything official on pricing, though. I am hoping they will have like a 30 minute iPhone portion at WWDC where they clean up this rumored, hyped-up mess. Things like a release date, exact pricings, and whether or not certain features, like third party software, will be supported. Then we can be sure and stop speculating, hoping, and creating rumors :D

[kashbo25]

Do you really think that AT&T is giving you a discount on a BlackBerry out of the goodness of their hearts? Their making that discount up in the service plans that you are buying with it.

I understand that Steve/Apple didn't want the iPhone subsidized. My hope is that instead of discounting the phone, AT&T will offer the data plan at a cheaper rate since they don't have to make up for a discount on the phone. I can't see any other reason for Apple not to want the phone subsidized since they make the same amount of money regardless of how much AT&T charges for the phone.

All this assumes that the iPhone will only be sold at the announced pricing with a mandatory 2 year contract. The recent rumors, if true, regarding the option to buy an iPhone without a contract change everything. If the iPhone costs the same with or without contract, there is no reason to sign a contract. If these rumors are true, I expect there to be a discount when purchased with a contract. There have been rumors to this affect, but I disregarded them up until now.

It will be interesting to see how this all plays out.

P.S. Thanks for the info on the data pricing. I currently have Cingular's smartphone unlimited plan (I think it is called medianet) which runs $19.99 for unlimited.

what, awesome thanx for the info

[Hondamaker]

Did you mention to her that the iPhone has Cover Flow?:2cool:
:laugh2: My wife would rather live in a log cabin in BFE than have technology.

[Hondamaker]

i don't mind it either. let's just hope that it's the $20 plan and not the $40-50 plan.
He says they will ask us to get the unlimited package, but the wi-fi is still available and free, and I know that I will only use the internet with the phone when a wi-fi connection is available.

[joe]

Unlimited plans are a great way to go, as long as you will use them to the extent that they will be worth it. It's like when you go to a theme park and buy all the extras. They are worth it as long as you use them.

Now for the cost part of it. The unlimited plan will likely be more expensive, yes, but we can only hope it will be $20 a month. It seems to me, as has been mentioned in other threads or maybe this one :smile:, that making it much more than twenty dollars a month would push away a large group of consumers, so I am hoping they will be smart about this and price the unlimited plan at $20. So, as long as you will use the iPhone enough and browse the internet a good amount, the unlimited data plan might be a good option for you.


I still haven't found anything official on pricing, though. I am hoping they will have like a 30 minute iPhone portion at WWDC where they clean up this rumored, hyped-up mess. Things like a release date, exact pricings, and whether or not certain features, like third party software, will be supported. Then we can be sure and stop speculating, hoping, and creating rumors :D

$20/mo for unlimited data? That would be awesome but I would be surprised if it is that low for the iPhone plan.

[Spin This!]

He says they will ask us to get the unlimited package, but the wi-fi is still available and free, and I know that I will only use the internet with the phone when a wi-fi connection is available.
That still remains to be seen. I've read other threads (on other forums) where its implied that only if you use AT&T's services to browse, not the built-in wifi connection.

In no way would Apple/AT&T force you to have a unlimited data plan if you choose to use the built-in Wi-Fi. Read between the lines here folks! He's an AT&T rep, not the contract manager. Nobody knows until release day.

[Spin This!]

Here's the quote again (emphasis mine):

people are going to be asked to have an unlimited package — people are going to have to have a package with us to browse.
Asked is the key word here... it sounds to me like they will be pushing data plans for the phone but you won't be forced into it. He never said "mandated" or "contracted" or other such words.

Package doesn't necessarily mean data package—he means you will need AT&T service; the phone's browsing capabilities won't work without their service (whether that's voice, data, whatever).

[iphonenut]

Here's the quote again (emphasis mine):


Asked is the key word here... it sounds to me like they will be pushing data plans for the phone but you won't be forced into it. He never said "mandated" or "contracted" or other such words.

Package doesn't necessarily mean data package—he means you will need AT&T service; the phone's browsing capabilities won't work without their service (whether that's voice, data, whatever).

my interpretation was that you're not getting your hands on one until you sign a 2 year contract with unlimited data.

[Cantwait4iPhone]

my interpretation was that you're not getting your hands on one until you sign a 2 year contract with unlimited data.

Yeah, this was what I thought, as well. I assume he means that some kind of data plan is necessary on top of the voice plan. This was what I thought would happen, but things can change and I might be wrong.

[Spin This!]

I can't see them doing that... especially if a pre-paid iPhone is a reality...

[ColsTiger]

I can't see them doing that... especially if a pre-paid iPhone is a reality...

PrePaid is going to happen. That might be the difference maker between At&t and all the other prepaid services.

[archer6]

Which other forums do you moderate?

I moderate two different (non-public) forums comprised of govt. engineers & scientists working in classified fields.

[ColsTiger]

I moderate two different (non-public) forums comprised of govt. engineers & scientists working in classified fields.

I didn't mean to pry. I just know a guy that uses the handle ARcher that moderates some Moto cell phone forums.

[Spin This!]

PrePaid is going to happen. That might be the difference maker between At&t and all the other prepaid services.
If a data plan is required, the only pre-paid offering you can add will be the Pick-Your-Plan; it looks like you can't add a data plan onto a Pay-As-You-Go service.

[archer6]

I didn't mean to pry. I just know a guy that uses the handle ARcher that moderates some Moto cell phone forums.

No worries, happy to answer your question.

[archer6]

I love Roller Coasters!

And this entire iPhone project with the resulting rumors and related speculation is quite a roller coaster ride.

Check this quote out:

"it's not hard to imagine AT&T charging $99 a month for an iPhone voice/data plan."

source: Ars Technica (http://arstechnica.com/journals/apple.ars/2007/05/29/att-executive-talks-iphone)

[ATTingular]

If a data plan is required, the only pre-paid offering you can add will be the Pick-Your-Plan; it looks like you can't add a data plan onto a Pay-As-You-Go service.

As of next month, straight pay as you go users will be able to buy MEdia bundles which will last 30 days. They will be the same price per month as postpay and will have all the features included, they just automatically expire after 30 days. The features thus far announced are as follows:

1MB MEdianet 5.99
Message 200 5.99
MEdia Basic 9.99
MEdia Works 14.99

No unlimted text or data packages has thus far been mentioned.

[olafene]

1MB MEdianet 5.99
Message 200 5.99
MEdia Basic 9.99
MEdia Works 14.99

No unlimted text or data packages has thus far been mentioned.

I am a little unfamiliar with the data packages of Cingular/ATT, I was hoping you could elaborate a little bit about them, being a rep in all. Is there a tier service where you pay for the amount of speed you want down/up? e.g. 1MB is 5.99, 2MB is 8.99, etc.? Curious to know if this is unlimited, but you already mentioned that question. Also, since this is GSM, it works overseas right?

Sorry for the questions if they're repetitive, I just figure: ask an expert! I know I could google it or check out the homepage, but I would rather ask somebody who knows what's going on. I haven't been with ATT since they swapped their name over to Cingular.

[ColsTiger]

I am a little unfamiliar with the data packages of Cingular/ATT, I was hoping you could elaborate a little bit about them, being a rep in all. Is there a tier service where you pay for the amount of speed you want down/up? e.g. 1MB is 5.99, 2MB is 8.99, etc.? Curious to know if this is unlimited, but you already mentioned that question. Also, since this is GSM, it works overseas right?

Sorry for the questions if they're repetitive, I just figure: ask an expert! I know I could google it or check out the homepage, but I would rather ask somebody who knows what's going on. I haven't been with ATT since they swapped their name over to Cingular.

Cingular has an unlimited data and text plan for $39.99. I'm hoping we won't be forced into that choice though.

[CybertiggerNW]

I pay AT&T $29.99 per month for an unlimited data plan (no video) for my BlackBerry.

I pay AT&T $39.99 per month for an unlimited data plan (with video) for my 3G Motorola RAZR V3xx.

So that will give you an idea of where the pricing is currently for two different types of phones.

Cheers....:smile:


Yikes!! $20 is a gift folks... I pay $44.99 for my Treo on Verizon.... that is for unlimited data... but if I exceed text messages they charge extra.. go figure!!

[Maxwell]

Does anyone have any clue or speculation as to how much service for the iphone will be? I don't want to be paying an obscene amount every month after I bankrupt myself to buy it.

Gasoline costs about the same whether it's being poured through a Hummer or a hybrid. I'd guess that basic phone service for iPhone would cost about the same as basic phone service for a free phone whose purpose is to tantalize the buyer into becoming a subscriber to its provider services.

[idjmeka]

Most likely with most revolutionary phones aka (sidekick with t-mobile) the iPhone with Cingular/AT&T they're going to make a unlimited (Data, text, & video) plan for like 30bucks a month. making people think they're saving in the long run and with a nice phone. Making them want to buy iPhone for full price while Apple and Cingular/AT&T are still making money. Which would be Logical if they wanted more customers, I would do that if I was them.

This to maybe wishful thinking!