AT&T's Pay-Even-More Policy

News Analysis. AT&T's iPhone 3G family pricing is some kind of family
unfriendly.

AT&T's re-announcement of iPhone 3G plan pricing made the Mac blogs and
news sites today. At first, I overlooked the pricing announcement, since
I had already blogged about AT&T's pay-more policy on June 10.

For individuals, there are not huge differences here since the original
pricing announcement. As expected, AT&T will raise iPhone data rates to
$30 a month, nixing bundled text messaging and negating the $200 device
price decrease by $240 in extra data fees over two years. That was known
three weeks ago. Now known: Family Talk plans are shockingly higher than
current family plans with iPhone 2G. I mean mug-me-at-the-ATM higher.

The 2100-minute plan will be $169.99. Right now, for the same plan, I
pay $120, including iPhone data, plus $9.99 for an additional line. The
monthly price difference means no iPhone 3G for me. There is simply no
way that I'm going to pay $50 more a month for iPhone 3G. I must have
gotten the 2100-minute plan before an AT&T price increase, because
standard Family Talk is now $109.99, which is still a freaking
$40-a-month increase!

From the chart below, that $40 more a month is consistent across
various Family Talk plans. I took each current plan and added $20 a
month for comparing iPhone 2G and iPhone 3G pricing; that gives a fair
data plan-to-plan perspective. But that's a generous comparison. Family
Talk subscribers buying an iPhone for the first time will see their
monthly bills go up $60 a month! That's double the increase for new
iPhone buyers on individual plans.

iPhone 3G Family Plan Pricing

Let me put the cost another way. That $50 a month would add $1,200 to my
bill over the 24-month contract, just for one iPhone (and in the AT&T
fine print hopefully a second one for my daughter). I could buy a second
iPhone 2G from eBay for $300, pay $480 for data over two years and bank
$420.

My wife got a red and silver Nokia N95 for her birthday. We discussed an
iPhone. The data plan for the Nokia phone is $15 a month, without text
messaging. Had we waited for iPhone 3G, the extra monthly cost would be
$40. So, the extra iPhone 3G would have raised my monthly bill by $90 a
month! Or $2,160 over two years. (Caveat: I'm assuming that my daughter
would get an iPhone, too, and that AT&T's second line policy would cover
the device.)

The N95 cost $430, but unlocked, so there is no 24-month commitment with
AT&T. Hypothetically, the cost would be $790 over two years, figuring
purchase price and data plan. By comparison, the iPhone 3G would cost
$1,160 (including purchase price) over the same 24 months.

Other news: The white iPhone 3G will not be available for $199. Only
black. Will Apple please make up its mind? With MacBook, Apple charges a
premium for black; white is standard. But with iPhone 3G, white is
priced at a premium; at least there's 16GB storage for the extra 100 bucks.

As I predicted, and for which I finally am vindicated, AT&T will offer
subsidized and unsubsidized iPhone 3Gs. For people that don't qualify
for the device upgrade, the 8GB iPhone will be available for $399 and
the 16GB model for $499, with a two-year commitment. AT&T also plans to
offer unsubsidized, no contract commitment iPhones for $599 (8GB) and
$699 (16GB), presumably unlocked.

What will you pay? Better stated: What are you willing to pay for iPhone
3G?

Source:
http://blogs.eweek.com/applewatch/co...LSTR070308FEA1


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