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Hardware 2.0

Adrian Kingsley-Hughes

AT&T starts putting the brakes on unlimited iPhone/iPad data

By | June 2, 2010, 4:42am PDT

Summary: Given that AT&Ts network already seems to be creaking under the load of millions of iPhone users checking their email, watching YouTube and uploading new LOLcats, “unlimited” really was an offer too good to last. AT&T is announcing changes to it’s iPhone and iPad data plans that try to wean data-hungry users off the all-you-can-eat plans.

Given that AT&Ts network already seems to be creaking under the load of millions of iPhone users checking their email, watching YouTube and uploading new LOLcats, “unlimited” really was an offer too good to last. AT&T is announcing changes to it’s iPhone and iPad data plans that try to wean data-hungry users off the all-you-can-eat plans.

First there are changes to iPhone users. They only affect users who will want to the tethering option, but the upper limit on this data plan will be 2GB:

  • DataPlus. Provides 200 megabytes (MB) of data – for example, enough to send/receive 1,000 emails (no attachments), plus send/receive 150 emails with attachments, plus view 400 Web pages, plus post 50 photos on social media sites, plus watch 20 minutes of streaming video – for just $15 per month.** This plan, which can save customers up to 50 percent off their wireless data charges, is designed for people who primarily like to surf the web, send email and use social networking apps. If customers exceed 200 MB in a monthly billing cycle, they will receive an additional 200 MB of data usage for $15 for use in the cycle. Currently, 65 percent of AT&T smartphone customers use less than 200 MB of data per month on average.
  • DataPro. Provides 2 gigabytes (GB) of data – for example, enough to send/receive 10,000 emails (no attachments), plus send/receive 1,500 emails with attachments, plus view 4,000 Web pages, plus post 500 photos to social media sites, plus watch 200 minutes of streaming video – for $25 per month.** Should a customer exceed 2 GB during a billing cycle, they will receive an additional 1 GB of data for $10 for use in the cycle. Currently, 98 percent of AT&T smartphone customers use less than 2 GB of data a month on average.
  • Tethering. Smartphone customers – including iPhone customers – who choose the DataPro plan have the option to add tethering for an additional $20 per month. Tethering lets customers use their tethering-enabled smartphones as a modem to provide a broadband connection for laptop computers, netbooks or other computing devices. Tethering for iPhones will be available when Apple releases iPhone OS 4 this summer.

There are also changes to the iPad offerings too:

For new iPad customers, the $25 per month 2 GB plan will replace the existing $29.99 unlimited plan. iPad customers will continue to pre-pay for their wireless data plan and no contract is required. Existing iPad customers who have the $29.99 per month unlimited plan can keep that plan or switch to the new $25 per month plan with 2 GB of data.

For some, this will save money, but for heavy data users they are a sign of things to come. These are some pretty aggressive cuts to the data plans, and while they only affect a small percentage of users, those users are going to have to seriously change their ways or the overcharges are going to be crazy.

These plans will come into effect June 7th.

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Adrian Kingsley-Hughes is an internationally published technology author who has devoted over a decade to helping users get the most from technology.

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Adrian Kingsley-Hughes

All opinions expressed on Hardware 2.0 are those of Adrian Kingsley-Hughes. Every effort is made to ensure that the information posted is accurate. If you have any comments, queries or corrections, please contact Adrian via the email link here. Any possible conflicts of interest will be posted below. [Updated: February 23, 2010] - Adrian Kingsley-Hughes has no business relationships, affiliations, investments, or other actual/potential conflicts of interest relating to the content posted so far on this blog.

Biography

Adrian Kingsley-Hughes

Adrian Kingsley-Hughes is an internationally published technology author who has devoted over a decade to helping users get the most from technology -- whether that be by learning to program, building a PC from a pile of parts, or helping them get the most from their new MP3 player or digital camera.

Adrian has authored/co-authored technical books on a variety of topics, ranging from programming to building and maintaining PCs. His most recent books include "Build the Ultimate Custom PC", "Beginning Programming" and "The PC Doctor's Fix It Yourself Guide". He has also written training manuals that have been used by a number of Fortune 500 companies.

Adrian also runs a popular blog under the name The PC Doctor, where he covers a range of computer-related topics -- from security to repairing and upgrading.

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RE: AT&T starts putting the brakes on unlimited iPhone/iPad data
Sanford195 10th Jun 2010
@Sanford195 Well it's clear AT&T doesn't want or can't handle the iPad or the iPhone usage and forget the voice service on anything. Apple should just put them out of their misery and start adding other GSM providers. AT&T can only damage the Apple Brand. This new data pricing plan which Apple had to know about and agree to, has now provided the guilt by association link that now puts apple in the same category with at&t, bait and switch artists that don't really give a sh_t about their customers.
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AT&T: Today's Network Tomorrow
bmgoodman 2nd Jun 2010
AT&T has always promised things will get better "in the coming year". Of course, they're adding subscribers and data usage is growing tremendously. So at best, they're treading water. In the Northern Virginia area, my service in the past 6-9 months is by far the worst it has been in over 10 years with them! Yeah, keep adding data plans, AT&T. Maybe I should consider moving to Sprint or T Mobile, because their customer base is shrinking.... grin
Getting my iPad 3G this month. I will be interested to see Steve Jobs response to the "bait and switch" AT&T is about to pull...
I stand to save money but will still be stuck with an unreliable network. I live in Central Florida and at best we get 1.4 Mbps on AT&T. Verizon is a much more reliable network down here and we still get 1.2 Mbps. I love the iPhone but hate the service. AT&T has had ample time to make money based on its exclusivity with the iphone. Now its time for it to come to toher providers that will be able to offer the quality of service that we deserve for the high prices we have been paying. I would gladly keep paying what I currently do if it ment I would always be able to connect at 3G (or better). Also, why does it cost more for me to tether? If I stay within the aloted MB/GB per month, or am willing to the additional money for overages then I should be able to tether. It is decisions like this that make me want to change carriers...even if it means I have to change phones. My only hope is the Verizon/Sprint iPhone will come out sooner rather than later and that it will not be some sort of willfully crippled device.
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Class action lawsuit
docwolfie 2nd Jun 2010
I would favor a class action lawsuit against both Apple and AT&T for changing the terms of its much touted iPad debut a month after the iPad 3G is released. This is unfair to the customer and there should be an investigation.
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@docwolfie
or do you want some whine with your cheese?
@Bruizer
But what about the customers who ordered one and are still waiting to get it, which 3G plan will they get ???
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We don't need no stinking retroactive!
Sanford195 10th Jun 2010
@Bruizer That?s true. However, many people purchased the 3G iPad with the understanding that there was no contract so they could turn the 3G service on and off when they needed it. You could keep it off and then when you were going on a trip, you could activate the 3G for the month and then turn it off when you got back home. The retroactive status you commented on is only correct if you never turn it off. The policy now is that once you turn it off, the next time you turn it on you loose the retroactive status and are stuck with the new pricing and reduced data volume. No wine for you, just cheese.
@Sanford195 Well it's clear AT&T doesn't want or can't handle the iPad or the iPhone usage and forget the voice service on anything. Apple should just put them out of their misery and start adding other GSM providers. AT&T can only damage the Apple Brand. This new data pricing plan which Apple had to know about and agree to, has now provided the guilt by association link that now puts apple in the same category with at&t, bait and switch artists that don't really give a sh_t about their customers.
I think making people pay for data usage makes sense but to charge for how it is used at the same time is insulting to their customer's intelligence.
This new smartphone price plan is radically cheaper than before if you didn't have an unlimited plan, but those of us with WWAN access in our laptops are still paying a lot when you break it down for typical 5GB-10GB monthly usage. Heck, virus scanner updates and patch Tuesdays add up!

One can dream that those prices will change soon too?
Does anybody have any idea how much data they use in a month on their iPad or their iPhones? I'm resetting my wife's iPhone this evening to see what she uses in a month, and will load up my Motion GPS HD on the iPad this evening and see what 10 minutes of map intensive data uses...
@David Scubadiver

Wireless bill should show monthly data usage - I know mine does. I end up using about 500GB a month, so will be pushed into the higher package. I would bet at&t did some analysis and set levels in such a way that many users were still forced to buy up.

I still question what it costs for them to deliver the data, is it similar to text messages, and if so, will it start to cause some sort of congressional wrath for the treatment of consumers.
@tbuccelli Oh, my, half a terabyte a month. On a T1, that would be a little over 30 days of pegging the pipe. If you download that much on a phone, they should charge you.
Just checked my wife's account - for the iPhone she used a maximum of 150 megs in the past six months. So I think this is going to save us a bit of money. I stupidly upgraded from the $15 to the $30 ipad plan only 1 week into the thing just in case I was going to want to be grandfathered. That was a waste.
Exactly what part of 'existing customers will not be required to change their plans' do some of you not understand?

If you are among the 98% of customers who use less than 2 GB of data a month, then you will be able to lower your bill by $5 a month, and if you are among the 65% who use less than 200MB a month, then you can cut your monthly bill by $15, if you go over the limits, you can purchase an additional bucket rather than paying the insanely expensive $2/MB data pay per use rate, and if you are someone who uses more than 2GB a month than you can keep your current plan for as long as you like. You will not be required to change your plan either now or later with the upgrade to a new smart phone. The only restriction is that if you choose to change to the new tiered plans, then you cannot go back to the unlimited plan.

And as far as the iPad goes, there is no monthly contract on the iPad and the T&C explicitly state that no price plan is guaranteed for any length of time and that prices can change. But existing iPad customers will be allowed to keep the old plans if they wish.

This seems like win/win/win for everybody involved, there is no need for the whining,it is completely fair and reasonable and is a change that will be welcomed by the majority of at&t smart phone customers

Smart phones will now be more affordable for everybody, there is no basis for a complaint here.
@Doctor Demento
With the new iphone if it has a front facing camera for video chat, this will change equation.

98% 2gb is that 90% @ 1.99gb, so you think you save $5 but it will cost you $10 if you go over, so the net result is that you will be paying $5 more a month.

AT&T is not doing this to lower their income, so there is a gotcha somewhere !!!!!!
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There's no gotcha here
donniebnyc666 2nd Jun 2010
Obviously, a switch from unlimited bandwidth to limited amount plans is intended to increase revenue. The plan says that you pay for what you use.

Use up to 2GB, pay $25. Use more, pay $10 for the next 2GB. Where's the gotcha?

The fact that it is now your responsibility to monitor your usage is no more a gotcha than it is in your car where you must check your gas gauge. No one likes a rate increase but it is described openly. It's not a trick.

What is missing is a notification from ATT at 1.8GB that you are about to go over and incur more charges. I would certainly like to see all cell providers forced to do that like they are in the EU.
@mrlinux

The goal is to respond to complaints from at&t customers that the mandatory smart phone data plan is too expensive and that other carriers like Sprint and T-Mobile offer cheaper rates.

The new tiered pricing structure makes the pricing more competetive therefore making it less expensive to own a smart phone and reducing churn that results from what is seen as an unreasonably high price for smart phone data.

Just like earlier this year when both at&t and Verizon slashed the price of the unlimited voice plan from $99.99 to $69.99, the goal is to make up for the loss in revenue per subscriber by increasing the total number of subscribers and offering those who already a customer the option of lowering their monthly bill to prevent theem from switching to another carrier.

Now, thousands or perhaps millions of people who are interested in getting a new iPhone or Blackberry or what have you but held off because of the $30 a month fee, will have more incentive to switch to smart phone.

This is economics 101, reduce the amount you earn per sale and make up for it by volume.
@mrlinux Perhaps it is to increase revenue, but it is also possibly to make people cognizant of their data usage, and reduce network traffic.
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donniebnyc@
mrlinux 2nd Jun 2010
AT&T is a corporation and to take $5 off up to 98% of their customers a month is a huge loss in revenue, there is something that is not being said here, no corporation is going to give up that kind of revenue.
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My Usage is Today
technojerry 2nd Jun 2010
I use nearly 500MB on average per month and that is a lot of emails with large enclosures, some video, and uploading photos and other documents to Evernote. My son's who streams music is less than 200MB per month on average. My wife who does email and FB is well less than 200MB per month. It seems like a reasonable plan since it really isn't the network, but the folks that are loading it too much. I look forward to a Verizon iPhone so some will get off what I think is a good network in the high desert of SoCal.
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My Usage
technojerry 2nd Jun 2010
I use nearly 500MB on average per month and that is a lot of emails with large enclosures, some video, and uploading photos and other documents to Evernote. My son's who streams music is less than 200MB per month on average. My wife who does email and FB is well less than 200MB per month. It seems like a reasonable plan since it really isn't the network, but the folks that are loading it too much. I look forward to a Verizon iPhone so some will get off what I think is a good network in the high desert of SoCal.
Since the average consumer doesn't know how much data passes thru their device, most will pick the lower priced plan. The scenario that plays out, will be the equivalent to, the $1000.00 bill for texting.

How do you calculate the data rate for daily "Pandora" use?
@sjones@...

You dial *data# or check your online account to monitor your data usage...it isn't hard
I can't tell how much I've downloaded with my at home ISP. There more lenient than cell phone carriers are.
I believe anyone grandfathered in should have the ability to switch to any of the plans on a monthly basis. The "no contract" concept sounds great on the surface, but if you are on the unlimited plan, you are somewhat being forced into a "non-contract" by renewing it monthly or be denied the unlimited plan going forward.

This is very sneaky and smart of AT&T since now they are getting a quasi-contract from those who want the unlimited plan still... Doesn't seem fear... I'm glad I just got my iPad 3g and will sign up for the unlimited plan tonight... However, I now feel that I am being forced into a contract!

AT&T should allow anyone grandfathered into the unlimited plan the option of switching to and from all plans on a monthly basis... This way we aren't forced to maintain a "non-contract" etc...
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For those who use little data this works out well for them but for those who use over 2GB/m they are getting hosed - as are the iPad users. I know they say that existing users do not need to change their plans but if AT&T tries to change my plan or make me change it I'll drop AT&T in a heartbeat and go back to Sprint and get the Incredible.
@athynz

What part of 'existing customers will not have to change their plans' are you not getting?
Doctor Demento... Existing don't have to change plans... However, if you don't keep it going and stop a month you will no longer have the $29.99 option. Thus now even those grandfathered in will need to remain on a monthly plan with no stoppage... Thus we are forced to do a contract which goes against their concept of no contract...
@imdakine1

That doesn't make any sense, that's like saying that if your landlord raises your rent when you sign a new lease you should be allowed to go back to the terms of the old lease whenever you want.....once you agree to the new lease, the old one no longer counts, and if the landlord is kind enough to allow you to continue to stay at your apartment at the old rent without signing a new lease and makes it clear that if you do sign a new lease the rent is going up, in what sense can it be said that you are under a lease?

If you can always go back to an old plan after it has been eliminated, in what can it be said that it has been eliminated?

Either the old plan is eliminated or it isn't, you can't have it both ways.
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I think 2GB is more than enough.
seriously3456 Updated - 2nd Jun 2010
I feel like 2GB is plenty. I'll definitely enjoy saving $5 a month. I've had 3.9GB received and 465MB sent since I got my phone 21 months ago! I really feel like I use it an embarrassing amount of time. A lot of websites and emails and a good amount of social networking. And as far as usage goes. Go to your settings-> general->and then usage. At the bottom is cellular network data. You can reset those statistics whenever you want.

I know its not an alarm, but it should help. I'm sure a lot of you will find that you barely use that much.
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Who are the 2%?
ssaha 3rd Jun 2010
I think that this new arrangement is aimed squarely at jailbreakers, especially those that flood their iPhones with traffic from tethered laptops. If we looked at a profile of who puts the most load on the AT&T 3G network, I'd suspect that jailbreakers lead the pack, and overuse the bandwidth they are given.
The problems that now those of us with unlimited plans on the iPad can't choose to stay off 3G (e.g. go without a plan) for any period of time between months of unlimited service as we were promised by Steve Jobs himself when we were marketed the iPad. So the money we were going to save by not auto renewing is lost. As soon as a subscriber doesn't auto renew, they lose their unlimited plan.
I use my G1 as the sole internet provider for me and my room mate. Its handy and no matter what my internet charges are a flat $30 rate.

For all of you who think ATT is doing a good thing (essentially you iPhone users) read this article :

http://getyourgadgetsgoing.com/2010/06/03/how-att-will-empty-your-pocket/

it breaks down how ATT is trying to trap you with statistics that mislead and device. Its true that i am an Android user but i hate to see companies take our hard earned money so this isn;t even about the whole Android-iPhone war. This is just be looking after my fellow consumers...so just check out the article the reply to me with thoughts

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