I am still using a 2g Iphone and decided not to upgrade to 3g due to the spike in monthly rates. Anyone know if the rates will continue to go up with the new release and why do we keep getting suckered into the higher charges??? Just a thought! Would be nice if ATT would give us long time customers a break.
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Thoughts on Iphone Rates
- Thread starter flcruzr
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The rates haven't gone up since the 3G. It's still 30 bucks a month for the iPhone plan.
The rates went up with the 3G because the 3G was subsidised with an additional monthly rate. You owned your 2G outright so all you pay is for the phone+data service.
Possible scenarios that might result with data plan price drop:
1. Massive number of users transfers from AT&T to other providers and citing price of data plan as the reason. likelihood is low
2. iPhone is being offered by other providers. possible, but this is only a leading factor that might result with AT&T dropping data plan price to attract and retain users
3. 4G is introduced and becomes the main data service. not in the near future
1. Massive number of users transfers from AT&T to other providers and citing price of data plan as the reason. likelihood is low
2. iPhone is being offered by other providers. possible, but this is only a leading factor that might result with AT&T dropping data plan price to attract and retain users
3. 4G is introduced and becomes the main data service. not in the near future
All data plans for smartphones is $30, not just now but for years.
Its not going to get any cheaper I bet. Hopefully not higher either.
IMO the extra $10 is well worth the speed difference and to be able to talk and acesss data together.
Its not going to get any cheaper I bet. Hopefully not higher either.
IMO the extra $10 is well worth the speed difference and to be able to talk and acesss data together.
Because you got suckered into paying TWICE as much to buy your original iPhone than people paid to buy their iPhone 3G/3GS.
Original iPhone = expensive phone + a cheaper data plan
iPhone 3G/3GS = much cheaper phone + normal-priced data plan
I don't think you understand what subsidized means. Original iPhone was not subsidized, which means you could have use that subsidy somewhere else.
Cost of the phone has nothing to do with the price of data plan. The reason why data plan costs more for 3G is because it's 3G instead of edge.
AT&T has never charged less for EDGE data vs 3G data. Ever.
When the original iPhone came out back in 2007, AT&T was selling other EDGE devices (Palm and BlackBerrys mostly), and they required the $30 unlimited data plan.
Like you said, the original iPhone wasn't subsidized, so AT&T used the subsidy money to lower the data/SMS plan rates by $15/month -- for the original iPhone only.
I agree with your point, but FWIW the 8GB 3G that's now $99 was actually $199 at introduction.
I think this is where your logic is flawed. AT&T doesn't get the subsidy money, they provide. Since iPhone wasn't subsidized, it's like buying a go-phone. AT&T gave special promotion price on data plan and text message, and it wasn't a subsidy. If data/SMS plan was a subsidy, original iPhone owners wouldn't have been able to upgrade to 3G.
$199 when the iphone 3G was first out.
I Agree the price has nothing to do with subsidy or anything but for the price difference between the 2 you could make up the additional $10 per month for over 2 years
I know why I thought it was $299, it's because I bought the 16gb.
I agree, but I don't see where I said the special data/SMS plan was a subsidy itself.
HereI agree, but I don't see where I said the special data/SMS plan was a subsidy itself.
. I think it's very unlikely we'll see data plan rates go down. They may be advertised as lower but it will be with use caps etc.
If anything, (and we're starting to see this already) the carriers will migrate their voice minutes component prices into the data plan rates (and possibly refer to the combined package as something new). There was a story in the wsj not long ago talking about the challenge the carriers are having with college age (+/- few years both sides) who no longer use their voice minutes. They either use texting or socal networking apps like Facebook as their communication transport mechanism.
The only way we'll see total monthly subscription rates decrease is if there is some new compelling technology that arises that they can begin charging for. These companies are in business to make money for themselves and shareholders- and lowering prices does not easily support this objective.
I know some will say that lowering prices will drive a share shift, but in reality, this it much more difficult to do than it sounds - and ofter takes much longer than investors are willing to wait and requires a heavy investment in marketing to ensure awareness (current expense).
Also, given how expensive these phones are and the rate of change, I can't practically see the phone subsidized pricing model going away very soon. It's much easier for most people to pay an extra $10-15 a month than it is to come up with $300-$400 every 18mths.
If anything, (and we're starting to see this already) the carriers will migrate their voice minutes component prices into the data plan rates (and possibly refer to the combined package as something new). There was a story in the wsj not long ago talking about the challenge the carriers are having with college age (+/- few years both sides) who no longer use their voice minutes. They either use texting or socal networking apps like Facebook as their communication transport mechanism.
The only way we'll see total monthly subscription rates decrease is if there is some new compelling technology that arises that they can begin charging for. These companies are in business to make money for themselves and shareholders- and lowering prices does not easily support this objective.
I know some will say that lowering prices will drive a share shift, but in reality, this it much more difficult to do than it sounds - and ofter takes much longer than investors are willing to wait and requires a heavy investment in marketing to ensure awareness (current expense).
Also, given how expensive these phones are and the rate of change, I can't practically see the phone subsidized pricing model going away very soon. It's much easier for most people to pay an extra $10-15 a month than it is to come up with $300-$400 every 18mths.
Are you SURE about this? Positive? Then why does ATT charge $30/month for data in areas they don't have 3G coverage?
Most likely the reduced data rate was an incentive ATT had to offer to get the exclusivity on the original iPhone. Without having to subsidize the phone.
No I am not sure, but your logic is flaw.Are you SURE about this? Positive? Then why does ATT charge $30/month for data in areas they don't have 3G coverage?
Most likely the reduced data rate was an incentive ATT had to offer to get the exclusivity on the original iPhone. Without having to subsidize the phone.
AT&T's exclusivity of iPhone is between itself and Apple, thus providing reduce data plan has nothing to do with the relationship between them.
Subsidy is between AT&T and clients, which AT&T uses the money they make from the clients to pay for the difference between cost to sell the phone and cost to offer the phone.