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AT&T to start charging more for iPhone data usage?

By | December 10, 2009, 7:38am PST

Summary: Watch out, iPhone users, as you might have to curb your Internet data usage soon. According to USA Today, AT&T is having trouble handling wireless data usage. Too much activity has led to dropped calls and longer load times on apps that use the Internet. That goes double for users in New York and San Francisco. AT&T execs say [...]

Watch out, iPhone users, as you might have to curb your Internet data usage soon.

According to USA Today, AT&T is having trouble handling wireless data usage. Too much activity has led to dropped calls and longer load times on apps that use the Internet. That goes double for users in New York and San Francisco.

AT&T execs say that say that they’re working on (unspecified) upgrades to curb the problem, but that they’re also considering developing ”high-bandwidth users incentives to ‘reduce or modify their usage.’” There isn’t a definite date or timeline yet, or details how this will apply to owners already under contract.

Personally, I hate this. I don’t want to have to worry about counting how many KB or MB I’m using per month, per week, per day, whatever. And I can see a lot of iPhone users turning towards unlocking their phones and using other carriers to get away from AT&T.

Do you think this is a viable solution or will it just result in backlash against the company?

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Topics

Apple iPhone, AT&T Corp., Usage, Smart Phones, Consumer Electronics, Personal Technology, Rachel King

Rachel King is a staff writer for ZDNet based in San Francisco.

Disclosure

Rachel King

Rachel King has no business relationships, affiliations, investments, or other potential conflicts of interest relating to the content posted in this blog.

Biography

Rachel King

Rachel King is a staff writer for CBS Interactive in San Francisco. Before serving as a contributing editor at ZDNet in New York City for two years, she previously worked for The Business Insider, FastCompany.com, CNN's San Francisco bureau and the U.S. Department of State. Rachel has also written for MainStreet.com, Irish America Magazine and the New York Daily News, among others. Rachel has a B.A. in Mass Communications and History from the University of California, Berkeley and a M.S. in Journalism from Columbia University, where she served as art director for the student magazine, Plated.

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I'm not him either
Pete "athynz" Athens 14th Dec 2009
but I do have a VZW Blackberry plan and I'm (or rather my company is) paying $79.00/m for the plan... add tethering to that for another $15/m with a 5GB cap (yeah, truly unlimited... and my company canceled the tethering once we got wifi in our offices), plus insurance, etc.

My iPhone plan - since it's part of my family plan is about 25/m less expensive including the $30/m unlimited internet... we share the text/ MMS unlimited plan and minutes.

I do not like this ides of a tiered plan at all - if I'm paying for unlimited internet (and this is for ALL carriers who put a cap on "unlimited" plans) then I should be able to be online on my device 24/7 and be able to "eat my fill"... obviously that is not the case. The ONLY way I could see a tiered plan is IF the plans maxed out at $30/m for "unlimited" internet... one without such a cap on it - and drop the prices for the "lesser" tiers accordingly... which will not happen. Likely AT&T will START at $30/m and I hate to say it but if that does happen... as much as I love my iPhone I might just have to migrate to VZW and get an Eris.
View in thread
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"Too much activity has led to dropped calls"
T1Oracle 10th Dec 2009
Finally they admit it. So uhh, what value is a fancy iPhone if you can't make calls AND you can't get online with it?

A fool and his money...
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"Too much activity has led to dropped calls"
Masari.Jones 10th Dec 2009
What a bunch of BS... I thought data and voice were treated separately,
that's how you can go online while in a phone call? To blame one on the
other is copout...
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To be fair
archangel9999 11th Dec 2009
A lot of iPhone apps are unmitigated bandwidth hogs - too many local desktop developers writing apps for phones - they think they have unlimited resources and LAN-style bandwidth - add to that the crappy comm HW in the iPhone and the impact of otherwise unnecessary retransmissions...

I see it in the utilization stats for my WiFi net when my daughter uses some of the apps on her iPod Touch - drop that on a cellular net and the comm traffic could be pounding
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RE: AT&T to start charging more for iPhone data usage?
drochester@... 10th Dec 2009
One of the things that has kept me from getting an iPhone is
AT&T. If they indeed are planning on increasing their data
plan charges, then I will hold out until another carrier picks
up the iPhone contract.
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RE: AT&T to start charging more for iPhone data usage?
qualityphone 10th Dec 2009
One experiences plenty of dropped calls on AT&T without an Iphone or smartphone or even an active data connection. i.e. the data overload affects everyone (who also pays at&t), not just smartphone users. This in pretty urban areas, not in the middle of nowhere...
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RE: AT&T to start charging more for iPhone data usage?
Starman35 10th Dec 2009
Too bad. I don't have an iPhone, & won't buy one, because
its just too expensive to buy & use. The iPod touch, on the
other hand, can access the internet at any wifi hotspot, but it
doesn't make calls. That is my choice, and I have a cheap
no-contract phone for calls. That works for me.
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RE: AT&T to start charging more for iPhone data usage?
jcc271 10th Dec 2009
I'm waiting for the iPhone to show up on another network. when I had AT&T (before the iPhone came out) my calls were constantly dropped and the people I called always complained about the poor quality. I'd love to buy an iPhone and could really use some of it's features, but not on AT&T's network, thanks.
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RE: AT&T to start charging more for iPhone data usage?
Jellyhead 10th Dec 2009
I'm an iPhone user.

I think it would be a disaster for AT&T to charge by the drink. This would likely prompt a
mass exodus(including me) of users onto other carriers. For those who can figure out
how to unlock their phone, the only other viable carrier with GSM is T-Mobile so iPhone
users with the current GSM chip-set, have limited options.

For those that aren't capable or don't want to attempt to unlock the iPhone, they will
choose, not only another network provider, but another platform.

I bet Apple will have something to say about this possible charge.
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RE: AT&T to start charging more for iPhone data usage?
proadventurer 10th Dec 2009
So you don't have one, yet you comment? What is it about the iPhone that bothers you? I really have not had any problems with mine or the network, in fact regardless of phone I have never cared about what network I was using. Ah, you city folk and your issues. Nothing is perfect, everything has a flaw, they are all tools; use the right one for YOU, the goal of EVERY corporation is to make money. What every phone and services you are using is making them money. All consumers are ALL fools.
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proadventurer
kllisk 11th Dec 2009
Do you work for sprint? (All consumers are ALL fools) is what their business model is based on!
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RE: AT&T to start charging more for iPhone data usage?
lawryll@... 10th Dec 2009
Let me put it this way. About a year ago I bought 2 IPod touch's. One for my wife and one for myself. I WOULD have bought 2 iPhones if I could have chosen another provider other than AT&T.

The iPhones (and iPods) are great. Too bad AT&T is kicking Steve Jobs right in the nibblies.
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RE: AT&T to start charging more for iPhone data usage?
sirglasgow 10th Dec 2009
I currently don't have an iPhone and the reason is the $30 per month REQUIRED data plan. I want and have a phone with WiFi. If I don't have an iPhone becuase of the current cost, I sure won't have one when the cost goes up. AT&T will be shooting themselves in the foot.
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RE: AT&T to start charging more for iPhone data usage?
bwhaire 10th Dec 2009
My daughter just lost her Iphone which was not getting good coverage at college in PA even though there were plenty of towers aroung her. I reactivated one of her old phones for now. I've been a long time att cust. At this point I'm moving my 3 cells to verizon asap.
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Speak Out On The IPhone!!
itanalyst2@... 10th Dec 2009
angryiphoneusers.blogspot.com

AT&T won't let you post on their message boards, they will ban you if you complain too much.
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Android user on AT&T network
vkelman@... Updated - 10th Dec 2009
I'm Android user on AT&T network. It's probably
the same plan which iPhone owners use, $30 per
month PDA. Honestly, I didn't notice dropped
calls or other service deterioration. Coverage
was always pretty bad on AT&T.
It's a pity USA is behind in providing Internet
access... I have heard from other Android users
about 10 pounds per month data plans existing in
England, I think WiFi coverage in Europe and
Japan is cheaper and better too.
My only hope is that maybe Google would provide
cheap and broad WiFi coverage... they are
interested in it financially.
As far as switching to other carriers, I was
told that Verizon's data plans are even more
expensive than on AT&T, although coverage is
much better. And they use CDMA, so my GSM phone
won't work. T-Mobile has a bad coverage. No
luck!

P.S. I welcome everybody on Google Waves
dedicated to Android devices.
https://wave.google.com/wave/#restored:wave:goog
lewave.com!w%252BmGAqdR7kA.1
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Sprint
p0figster 10th Dec 2009
I pay $70 a month (before discount) for unlimited
data, texting and calls to any other mobile phone
in the US with Sprint on my Android phone. I know
a lot of people don't like Sprint, but they've got
decent coverage, I don't experience dropped calls
and my internet is pretty quick. Plus it's a lot
cheaper than other comparable plans.
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Not that cheap in UK
archangel9999 11th Dec 2009
Orange offers a 30 GBP plan with minimal talk minutes and a cap of 750 MB/month

The 10 GBP plan from O2 is voice only and data costs an extra 1 GBP per DAY

BTW - as of this writing 1 GBP = 1.6235 USD
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And I want an iPhone because...
IT_Guy_z 10th Dec 2009
...oh yea, now I remember. Becuase AT&T is claiming it has "the nations fastest 3G network"...only if no one uses it, that is.

What a crock.

I'm with Verizon in the NY Metro area...and use my 3G LG env Touch as a tether to my laptop. I run SlingMobile without any problems...can't remember the last time a call was dropped...use pcAnywhere to connect to my office...and NEVER have any e-mail issues.

So I should give this all up, just to be a trendy goober with an iPhraud? Not a chance in hell.
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Same here
russhouck Updated - 10th Dec 2009
I have the Omnia MS phone on Verizon and also do GoToMyPc, email, tether the lap top. Never had a dropped call or lost my connection. Even when going to Green Bay to watch a game. 3G is fast enough on Verizon and has great coverage for me so far.
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How much do you all pay a month for this? -- - (nt)
Wintel BSOD 10th Dec 2009
-
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I'm not him, but I pay $79.99/month
jred 14th Dec 2009
True unlimited data (not 5gb like Verizon), unlimited voice, unlimited text, pretty much unlimited everything.

When my daughter get's her phone upgraded for Christmas, it'll be an additional $39.99 for her unlimited account.

Cellular South, which according to the coverage maps shares the Verizon network.

HTC Hero!!!
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Looks like no answer
Wintel BSOD 12th Dec 2009
Therefore it's probably some ridiculous price they'd be embarrassed telling...

grin
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I'm not him either
Pete "athynz" Athens 14th Dec 2009
but I do have a VZW Blackberry plan and I'm (or rather my company is) paying $79.00/m for the plan... add tethering to that for another $15/m with a 5GB cap (yeah, truly unlimited... and my company canceled the tethering once we got wifi in our offices), plus insurance, etc.

My iPhone plan - since it's part of my family plan is about 25/m less expensive including the $30/m unlimited internet... we share the text/ MMS unlimited plan and minutes.

I do not like this ides of a tiered plan at all - if I'm paying for unlimited internet (and this is for ALL carriers who put a cap on "unlimited" plans) then I should be able to be online on my device 24/7 and be able to "eat my fill"... obviously that is not the case. The ONLY way I could see a tiered plan is IF the plans maxed out at $30/m for "unlimited" internet... one without such a cap on it - and drop the prices for the "lesser" tiers accordingly... which will not happen. Likely AT&T will START at $30/m and I hate to say it but if that does happen... as much as I love my iPhone I might just have to migrate to VZW and get an Eris.
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Ms too
lelandhendrix@... 10th Dec 2009
I have been an iPhone user on AT&T since February and haven't had a
dropped call--except for one time I was talking and got into an elevator and
descended to the basement of a VA Hospital. Which I don't think is a dropped
call, but an area with no coverage of any network.

Your mileage, of course, may vary.
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Both, actually.
peter_erskine@... 10th Dec 2009
It is a viable solution, as it is nobody's interests to have an over-congested network.
Will it cause some backlash? Yes, but that's what AT&T wants - to drive a few hoggish users away. Make the remaining AT&T users more likely to stay, and more satisfied with the service.
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"but that's what AT&T wants - to drive a few hoggish users away."
IT_Guy_z 10th Dec 2009
Drive a "few" users away? You really think that's all it will take? What are you smoking?

AT&T will need to drive HUNDREDS OF THOUSANDS of users away to make any difference...and they may just do that. They've sold over 20 million of these things, and probably 1/3 in the US, and that means they are on AT&T.

Time to adjust your meds Sparky.
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iPhone share
archangel9999 11th Dec 2009
Recent report pegged iPhone users at only about 4-5% of ATT user base
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RE: AT&T to start charging more for iPhone data usage?
MAC-Power 10th Dec 2009
They already have the worst customer services on the
iPhone now. AT&T should upgrade themselves to take care
of the system that can handle the iPhone load and the
customer service instead. AT&T cannot handle the load of
iPhone, so they charge their customer for their problem???
I am hearing this wrong! They are already charging too
much for the iPhone plan, and they still want more money.
They are kidding me right!!! I think they are trying to make
more money out of the current iPhone contract users
before their contract expired with Apple. This is a spam!!!
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Would love to be Verizon's Ad Agency right now...
hoos30 10th Dec 2009
This commerical practically writes itself!
0 Votes
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New Ad Copy, Hot Off The Press!
g-man_863 10th Dec 2009
"Wanna take it up the a-- on your monthly bill? There's a map for thet!
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RE: AT&T to start charging more for iPhone data usage?
bproffit 10th Dec 2009
Why should we be punished for their inability to develop an adequate infrastructure. But hey, if it encourages Apple to move away from AT&T so much the better!
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Give me the option to not have their data plan!!!
Keeping Current 10th Dec 2009
Would love to buy my wife an iPhone so she could consolidate her current cell phone and iPod Touch but we can neither afford or want AT&T's data plan.

A person can easily buy an iPhone online and with a few simple steps have it running on our current plan. Only problem is that AT&T's Terms of Service (TOS) says that if they find I'm using an iPhone they can add the data plan whether I want it, use it, or not. And from the posts I've seen online, they are very much monitoring device connections.

Point is that AT&T is just down right greedy. They want to charge ridiculous prices for poor service and control every aspect of what we can and can?t do. I may not be a fan of our current political administration but the efforts to look in on the garbage the cell companies are pulling is well founded.

If someone wants to purchase a phone and use wifi rather being forced into a data contract then they should be able to. And please don?t tell me that cell phone cost as much as the cell companies are charging. I don?t buy it. If I can buy decent laptop for $500 then there is NO way in heck a cell phone/pda should cost as much.

I?m done ranting for now. Enjoy all.
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Costs
archangel9999 11th Dec 2009
They need to capture the data revenue to offset the vig they're kicking back to Apple

Their agreement has ATT buying down the cost of the iPhone so the user thinks Apple is altruistically selling it for only a couple hundred bucks (more like $600 to ATT) and having to recover the buy down from the two year plan revenue - ATT also kicks back part of the data plan revenue to Apple

Sweet deal for Apple, maybe not so sweet for ATT - their recent report shows they barely (by pennies) increased their average monthly data revenue per user statistic
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RE: AT&T to start charging more for iPhone data usage?
Masari.Jones 10th Dec 2009
I had Sprint prior to purchasing an iPhone, and I can honestly
say I had no problems with their network. Coverage was good
and data speeds were top notch.
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RE: AT&T to start charging more for iPhone data usage?
Masari.Jones 10th Dec 2009
So, AT&T gets the worst scores in a recent survey, their 3G
network coverage is fair (at best), their overall service is poor,
and their solution to the problem is not to take agressive and
prompt action to fix and update their network... no that would
be too difficult, let's charge people more for our crappy
coverage, dropped calls, and overloaded bandwidth.

Nice... Do it AT&T and I guarantee I'll go back to Sprint!
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Hah
archangel9999 11th Dec 2009
No doubt you have them quaking in their ***** loafers happy
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iPhone is overrated...
g-man_863 Updated - 10th Dec 2009
Although many may disagree, I see the iPhone as an overblown tech toy for most users.

If I was a road warrior and really needed an all-in-one phone, GPS, e-mail, credit card processing machine and sushi bar finder, it might be worth the cost. Otherwise, there are better options available.

Personally, I'm sticking with my antique (2 year old) Samsung Sync. Unlimited data on it is $15/month. If I'm not near a Wi-Fi hotspot, I can hook it up to my notebook via USB cable and get decent Internet access on a screen that's about 16x the size of the iPhone's.

If I decide I need more, I'll look at either a 3G card from Cricket ($45/month for up to 10GB per month and no contract) or wait for Sprint's 4G to hit Houston in 2010. Sprint's web site states that, in 4G markets, there will be no data cap or overage fees.

I've seen too many horror stories about AT&T 3G customers getting hit with outrageous ($1000+) monthly overage fees due to downloading music or streaming video. It looks like they're looking forward to giving iPhone users the same treatment when their contracts come up for renewal.
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$1000 overage fees
archangel9999 11th Dec 2009
Not likely for anyone but a moron - I have ATT's smartphone data plan for my HTC Diamond 2 and it's got unlimited data (i.e., no overage fees ever)

The "horror stories" you might be thinking about would be people stupid enough to not have a data plan but who use data nevertheless or from people dumb enough to hand an SMS capable phone to a kid without getting an unlimited texting plan

In either case it's a Darwinian event!!

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