The Apple Core

Jason D. O'Grady & David Morgenstern

AT&T quietly matching VZW’s unlimited data plan for iPhone

By | January 26, 2011, 7:43pm PST

It should come as a surprise to no one that AT&T is quietly offering iPhone customers its (previously discontinued) unlimited data for $30/month. The move is an effort to avert a possible wide-scale defection to Verizon when its iPhone arrives on the market.

The move isn’t an official rate change and no statement has been made by AT&T, but the AP reports that off-contract iPhone owners that call and complain can have their accounts switched back to AT&T’s unlimited data plan.

If you had an AT&T unlimited data plan on your iPhone prior to June 2010 you can probably switch back to it by calling and threatening to defect. It only works if you’ve been an AT&T customer since before June 2010 though, and loyalty can be a factor in AT&T’s decision.

AT&T spokesman Mark Siegel would only say:

“We handle customers and their situations individually, and we’re not going to discuss specifics”

Pay attention to that part about the contract, too. If you’re still bound by AT&T’s two-year agreeement you’ve basically got no leg to stand on. You might as well set an alarm in your calendar for the day that your contract expires — unless you want to pony up AT&T’s Early Termination Fee, that is.

I wonder what will happen to in-contract AT&T iPhone customers, willing to pay the Early Termination Fee, that call and threaten to defect? Will AT&T cave then too? If not, it probably should.

AT&T has no choice.

When AT&T loses its iPhone exclusivity next week (two weeks for non-Verizon customers) it has a gun to its head. To remain competitive AT&T will have to match VZW’s two biggest advantages: unlimited data and personal hotspot.

It’s time for AT&T to get creative and bang out a few press releases…

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Topics

Jason O'Grady is a journalist and author specializing in mobile technology. He has published six books on Apple and mobile gadgets and his PowerPage blog has been publishing for over 15 years.

Disclosure

Jason D. O'Grady

Jason D. O'Grady is the creator and editor of O'Grady's PowerPage, which has been publishing mobile technology news since 1995. He maintains an advertising relationship with the following legacy advertisers on the PowerPage:

  • Amazon Associates
  • Google Adsense
  • Tekserve
  • Advertising on the PowerPage is brokered by a third-party agency (BackBeat Media) and he recuses himself from these negotiations.

Biography

Jason D. O'Grady

Jason D. O'Grady developed an affinity for Apple computers after using the original Lisa, and this affinity turned into a bona-fide obsession when he got the original 128 KB Macintosh in 1984.

He started writing one of the first Web sites about Apple (O'Grady's PowerPage) in 1995 and is considered to be one of the fathers of blogging. He has been a frequent speaker at the Macworld Expo conference and a member of the conference faculty. He also co-founded the first dedicated PowerBook User Group (PPUG) in the United States.

After winning a major legal battle with Apple in 2006, he set the precedent that independent journalists are entitled to the same protections under the First Amendment as members of the mainstream media.

O'Grady is the author of The Nexus One Pocket Guide, The Droid Pocket Guide, The Google Phone Pocket Guide, and The Garmin nuvi Pocket Guide (Peachpit Press), the author of Corporations That Changed the World: Apple Inc. (Greenwood Press), and a contributor to The Mac Bible (Peachpit Press). In addition, he has contributed to numerous Mac publications over the years, including MacWEEK, Macworld, and MacPower (Japan).

When he's not writing about Apple for ZDNet at The Apple Core, he enjoys spending time with his family in New Jersey.

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RE: AT&T quietly matching VZW's unlimited data plan for iPhone
liezelee1109 14th Oct
The importance of stone tools, circa 2.5 million years ago, is considered fundamental in human development in the hunting hypothesis. It has been suggested, in Catching Fire: How Cooking Made Us Human, that the control of fire by early humans and the associated development of cooking was the spark that radically changed human evolution.- Kyle Thomas Glasser
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I knew this was coming. I am a recent "in-contract" iPhone 4 user on ATT as of 3 or 4 months ago. It certainly doesn't hurt anything to try, so I'll give them a call in the morning under the guise of simply "needing to know how much I need to set aside for my ETF as I'm planning to switch to Verizon on launch day" and see how they approach it. I love my corporate discount so the truth is it would take a lot for me to leave, but it's worth a shot anyway.

By the way, considering that Gazelle, as of 5 minutes ago is still offering $360.00 for a mint iPhone 4 16GB (which makes Verizon's 200.00 Visa gift card look like pocket change), the 375.00 ATT ETF is really of little deterrance to someone still in contract who really wants to defect. ATT better be prepared for the fact that ETF or not, the very device most of their in-contract customers are about to abandon is as good as cash in their pocket if they really want to leave.
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Interesting... fortunately I kept my unlimited data plan so I'm good but it is nice to know AT&T has at least temporarily come to their senses.
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Coverage matters most
i8thecat 27th Jan 2011
If you live or work in an area where AT&T service sucks, then it doesn't matter what AT&T offers. Those customers will jump ship just to have coverage that works... I am hoping AT&T pulls their heads out of their rears and offers personal hotspot at the same price. AT&T is and has allways been horrible on on mobile data plans. This is exactly what we need to b-slap them into reality.
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@i8thecat Agreed. Fortunately I live in an area where AT&T service is excellent but even so I don't want to have to pay an additional fee for a hotspot plan when it's using data I'm already paying for.
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Here is why competition is good
Tigertank 27th Jan 2011
NT
I had voluntarily given up my unlimited data to save $15/mo but I found I was to often going over the 200MB limit on my data plan. I called AT&T yesterday and asked to have my unlimited data plan back for $30/mo. At first they did not want to make the switch but once I said I would go to VZW and get unlimited data, they came to their senses and made the switch for me!
I hope AT&T does better than Verizon. Verizon gives you the tripple jab. First they charge you extra for a phone that is capable of data, then $30 a month for data plan and then another $20 a month to use it as a hot spot. WOW what a friggin deal.
@psivert@...

Uh, AT&T nickel and dimes exactly the same way, except that oh, yeah, they don't offer hotspot at all! Oh, and for six months, they didn't offer unlimited data, either.
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I don't know what you're talking about....
Snooki_smoosh_smoosh 27th Jan 2011
@psivert@... I have a palm pre plus I have the $30 per month unlimited data plan, and I can use my phone as a hotspot for up to 5GB cap of hotspot data.
Verizon's "unlimited data for $30" is only temporary; the company has conceded that it will end but won't say when. In any case, have you seen what Verizon is charging for an iPhone voice plan? Prices start at $40 a month! Is that what the company charges for voice on an Android? I was paying $10 a month for voice on my Windows Mobile 6 smartphone. Then again, I was on a family plan.
@paul613

It will end when the next version of the iPhone comes out. Presumably it will be 4G capable and Verizon will take away the unlimited plan for anyone wanting 4G. This is simply a marketing ploy to get customer to switch so they can lock you in and screw you over.
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RE: AT&T quietly matching VZW's unlimited data plan for iPhone
steveanderson1357@... Updated - 10th Feb 2011
@Masari.Jones Do you have any evidence for your first statement? Otherwise everyone else can speculate just as well. Do you have any evidence for your second statement? Do you have any evidence for your third statement?
@paul613

I think it's probably the other way around. Verizon wanted to retain the option of taking it away, but if it takes away AT&T's customers, they won't risk someone else pulling the same crap on them.

AT&T only tried that BS in the first place right after they got to keep ETFs, which they were in real danger of having regulated away. See how Verizon is promoting getting around that, and maybe we'll finally see a competitive phone industry in this country for the first time in ten years.
@tkejlboom

It will not happen. Carriers and handset manufacturers will play all kinds of games to keep the `status quo`.

A truly competitive phone industry would be any and all phones on any carrier .

But, thanks to the Best Government Money Can Buy , it will never happen.

Competition, real competition is NOT in the financial interests of the telco monopoly members.
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@paul613 If you paid only $10/mo for your phone, then you didn't have your own account and you probably never saw the bill. You were only paying the account holder for the phone you were using. AT&T and VZW voice plans are the same $40 and have been for a long time. The data prices will not be offered at the same price "forever" on new contracts. This has always been the case at every company. No one changes your price mid-term.
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This article seems like crap to me - I just spent 33 Minutes on the phone with them and got nothing other than their response claiming these articles on ZDnet, Engadget, etc. are rumors and that AT&T is not adding on Unlimited Data Plans - As a matter of fact, she offered to remove my iphone data 2gb + tethering and replace it with the 2gb Data (no tethering) for a reduced cost of $30 p/month! - I'm 99% sure that should be $25 and they were trying to charge me $30! - Thoughts or Tips from anyone appreciated.
@DJs4Less

Ask for a manager, and as the volume of people demanding goes up, expect it to get harder until the iPhone 4 comes out on Verizon and people actually start switching.
@DJs4Less, If AT&T is like the cable companies they might have a "Retention Dept.". Threatening to switch gets you transfered to someone with the authority to make a deal.
"AT&T spokesman Mark Siege" should be advised that treating individual customers differently may run afoul of State and Federal consumer laws. This could be lawsuit city for AT&T.
I have good phone service with my iPhone 4 on AT&T and I like the ability to talk on the phone AND run data related programs at the same time. Verizon cannot do this with their version of the iPhone.
I also do not understand how someone can use over 200MB let alone 2GB of data consistently every month and therefore needs an unlimited plan at $30 per month.
@lstaub - I see people on my bus watching Netflix movies on their phones every day. I suspect such uses consume data at very rapid rates.
@lstaub

Are you out of your mind? I don't see how anyone with an iPhone could possibly ever think 200MB is ENOUGH! I probably use that much just on the phone itself ALONE. But where the unlimited data will really come in handy for me is my jailbroken tethering program. Hell, even if you pay for tethering you're still capped so it's good for those who are paying as well.
i just did it. i had a bb for a yr, then a non smart phone for a few months. than an iphone.. i had gone over the 2gb limit the first few months i had the iphone 4. and i have been a member for years.. so i called them up and told them that i wanted to us 5gb a month, and that at&t overcharges for that, would pay for the etf, and then some. i asked them to do the math, and asked what the incentive would be to stay with att..
they gave me a speech about how they no longer offer the unlimited plan, but since i'm a valued customer, and had unlimited on my bb before. they'd add it back on... it was actually very simple. took only 5 minutes.
Here is the thing, going on a case by case bases is NEVER going to work. Even if they bring back unlimited data on the iPhone, all the other smart phone devices are being penalized. Basically they are saying that if any consumer won't get an iPhone, they don't need or deserve unlimited data.
I am on AT&T, but I'm in a family plan and no one has a smart phone. I am the only one who wants one, but the cost keeps me from getting one.
If they really want to be competitive then they should offer 3 basic options for ALL smart phones. $10 for the current 200MB, $20 for the current 2GB, and $30 for unlimited.
In addition, they should offer the ability to upgrade the data plan at ANY time.
This would be extremely competitive, because the unlimited cost is the same as any other carrier, with cheaper realistic options for people who either don't use as much data, want to conserve.
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Competition. About d@mn time!
techboy_z 27th Jan 2011
I'm still under contract for over a year with unlimited. But I'd like to see even that be cheaper, since I already pay $85/month, *post* corporate discount! I don't spend nearly as much talk time as some...time to stop gouging me over data!
@techboy_z ... I'm a conventional cell user with no contract and a very tiny monthly fee. As an outside, I have an honest question for you ... Do you feel that the experience you get from this combination of device/service/contract is a good value for you? I ask simply because I can't imagine any change to my lifestyle that would compel me to pay so much, under a 2 year contract, for any sort of phone/data plan. I'd be curious to hear from someone who feels their getting such a great experience that they're happily paying their monthly bill and comfortable with their 2 year contract.
@Trep Ford Am I happy paying what they charge for the device, voice and data plan that I am on, no. That being said I have been using a smart phone for a number of years now and the alternative of going to a feature phone for a smaller bill is not appealing to me in the least. I would love for the plans to be cheaper but for me the additional cost is worth it.
It is funny that no one is talking about ETF, but if a company wants to, they can charge you retail price for the phone you got at a discounted for 2 yr contract
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AT&T fine print
james347 28th Jan 2011
you will need a giant u-verse cabinet strapped to your back to see any further speed improvements.
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No they're not . . .
mkaiserco 29th Jan 2011
. . . at least not for me. I called Customer Services this morning (1/29) four times and talked with four reps. They all said the same thing. "The AP story is false. The only way we can move you back to unlimited is if you were moved off of it in error."
Two biggest advantages: Unlimted data and Personal Hotspot? Those are Vz's two biggest advantages? What planet have you been living on the last few years? Everyone knows that Vz's biggest advantage by far is their generally much better coverage and service. The other two together barely amount to some chocolate sprinkles on the cake!
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RE: AT&T quietly matching VZW's unlimited data plan for iPhone
jackson1984-24316069205748857739440257893812 11th Oct
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The importance of stone tools, circa 2.5 million years ago, is considered fundamental in human development in the hunting hypothesis. It has been suggested, in Catching Fire: How Cooking Made Us Human, that the control of fire by early humans and the associated development of cooking was the spark that radically changed human evolution.- Kyle Thomas Glasser

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