AT&T makes sweeping changes to data plans, iPhone tethering coming at OS 4 launch
By Chris Ziegler 
posted June 2nd 2010 3:00AM
posted June 2nd 2010 3:00AM
You might think that AT&T would hold off for a national HSPA+ deployment or a full-on LTE launch before tweaking its data pricing strategy, but not so much -- the carrier is coming out swinging today with some significant changes that should benefit the overwhelming majority of its smartphone users (and could stand to harm a select few). Let's break down the major points:DataPlus / DataPro
- The existing $30 fair-use "unlimited" smartphone data plan is being replaced by two new options: $15 per month for 200MB and $25 for 2GB (called "DataPlus" and "DataPro," respectively). Customers currently on the $30 plan are welcome to stay on it, but they can switch at any time without extending their contract.
- AT&T's new overage system is arguably the game changer: on the $15 plan, you'll pay $15 for each additional 200MB, but on the $25 plan, you'll pay $10 for each additional GB. It's simple and straightforward -- but most importantly, it won't bankrupt you if you go over by a gig or three in a month. This compares to $50 per gigabyte of overage on AT&T's 5GB DataConnect plan for laptops.
- The carrier's going to be very flexible about changing between the DataPlus and DataPro plans -- if you're on DataPlus, for example, and you discover that you're blowing past your allotment, you can choose either to start DataPro the following billing cycle, pro-rate it, or apply the higher plan retroactively to the beginning of your current billing cycle. That's pretty wild.
Tethering
- Tethering will be offered as an add-on to the DataPro plan for an additional $20 per month, which means you'll pay a total of $45 a month for 2GB of data shared between your phone and your tethered devices. If you're light on the usage, it's a sweet deal -- but if you scale it up and you're using the data almost exclusively on your laptop, it compares unfavorably to the traditional DataConnect plan: $60 versus $75 for 5GB (and in the unlikely even you've got a webOS device on Verizon, it compares even less favorably). If you're striking a balance of data use between a smartphone and tethered gear, AT&T's new setup is still pretty solid considering that you would've been paying $60 for the USB stick plus $30 for smartphone data before.
- Yes, it's finally happening: AT&T's iPhones will get access to the tethering option, too.
iPad
- iPad users are also affected by the change. The $30 iPad data plan -- lauded for being labeled by AT&T as truly unlimited -- goes away to be replaced by the same $25 / 2GB plan that smartphone users will see, though current subscribers to the $30 plan can continue unaffected.
We're definitely mourning the death of unlimited data -- "unlimited" is a word that consumers always naturally like to hear -- but AT&T points out that 98 percent of its smartphone subscribers use less than 2GB a month, which means that nearly all users ultimately stand to see a $5 reduction in their monthly bills. We spoke to Mark Collins -- AT&T Mobility's senior vice president of data and voice products -- about the changes for a few clarifications on the company's strategy, and he made it crystal clear that the concept of unlimited data is a thing in the past (echoing comments made recently by Verizon's Lowell McAdam), particularly in light of the oncoming spectrum crunch that stands to make wireless broadband an even more precious commodity than it already is. He also mentioned that laptop plans are unaffected by this move, though he went on to say that they've laid a "framework" for data pricing here that should continue all the way through to the company's LTE rollout, so we wouldn't be surprised to see some tweaks made on the laptop side sooner or later (to reduce overage fees, if nothing else).
We mentioned that the change stands to hurt a few users, and it's true -- we're extremely heavy smartphone users here, for example, and we're hard-pressed to break even a gigabyte of usage in a month; anyone doing a boatload of video streaming though, or lacking access to WiFi at home and the office (AT&T's quick to boast about its 20,000-odd hotspots) might find themselves regularly slamming headlong into that 2GB cap, and there won't be any option but to buy overage. For what it's worth, Collins pointed out to us that the plans will feature automatic text and email alerts at 65, 90, and 100 percent usage of your monthly allowance (and at 75 and 100 percent usage of each overage purchase), so it should be pretty easy to keep an eye on things and make sure you don't break the bank.
AT&T ANNOUNCES NEW LOWER-PRICED WIRELESS DATA PLANS TO MAKE MOBILE INTERNET MORE AFFORDABLE TO MORE PEOPLE
DALLAS, June 2, 2010 - AT&T*, the U.S. smartphone leader, today introduced new wireless data plans that make it more affordable for more people to enjoy the benefits of the mobile Internet. Customers can pick the new data plan that best meets their needs - either a $15 per month entry plan or a $25 per month plan with 10 times more data. Current smartphone customers are not required to switch to the new plans, but can choose to do so without a contract extension.
"AT&T helps mobilize everything on the Internet - your favorite web sites, TV shows, music, games and social networks. Virtually everything previously done while sitting at a computer can now be done on the go," said Ralph de la Vega, president and CEO, AT&T Mobility and Consumer Markets. "To give more people the opportunity to experience these benefits, we're breaking free from the traditional 'one-size-fits-all' pricing model and making the mobile Internet more affordable to a greater number of people."
Each plan includes unlimited access at no additional charge to more than 20,000 AT&T Wi-Fi Hot Spots in the U.S. Customers can also use unlimited Wi-Fi at home, in the office or elsewhere if available. AT&T will also help customers manage their wireless data usage by sending free text messages when customers reach different usage intervals, and by providing online tools, including a smartphone app that shows monthly usage information.
The new wireless data plans - including a new tethering option - will be available beginning June 7. Current AT&T voice and texting plans are unchanged.
More Choice
The new AT&T plans provide large amounts of data to enable people to enjoy their favorite online activities:
* DataPlus. Provides 200 megabytes (MB) of data - enough to send/receive 1,000 emails (no attachments), send/receive 150 emails with attachments, view 400 Web pages, post 50 photos on social media sites and 20 minutes of streaming video - for just $15 per month. This plan, which can save customers up to 20 percent off their wireless voice and 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 month. 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 - enough to send/receive 10,000 emails (no attachments), send/receive 1,500 emails with attachments, view 4,000 Web pages, post 500 photos to social media sites and 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 month. 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 enables customers to use their smartphone 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 OS 4.0 this summer.
With the new wireless data plans, pricing for a smartphone voice and data bundle now starts at just $54.99 per month for an individual plan, or $24.99 per month for an additional line on a FamilyTalk plan, $15 per month less than the price of the previous entry level bundle.
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.
Wi-Fi at 20,000 AT&T Hot Spots
The vast majority of smartphones that AT&T offers have built-in Wi-Fi, which lets the devices automatically switch from the wireless network to a Wi-Fi hotspot without prompting, making Wi-Fi even more convenient and easy to use. This enables customers to use Wi-Fi in the home, office and at public locations where available. Using Wi-Fi does not count against a customer's monthly data plan usage total. In addition, virtually all AT&T smartphone customers have access at no additional charge to more than 20,000 AT&T Wi-Fi Hot Spots at Starbucks, Barnes & Noble, and other U.S. locations. Customers can get more information on how to use Wi-Fi and find the location of AT&T Wi-Fi Hot Spots at www.att.com/wifiaccess.
Monitoring and Managing Usage
To help customers easily check their data usage, AT&T has made the information readily available in a number of ways:
* Customer Text Notifications On Data Usage. When customers begin to approach their monthly usage limit, AT&T will send three text notifications - when they reach 65 percent, 90 percent and 100 percent of the threshold. Customers will also be sent emails if AT&T has their email address.
* Data Usage Monitoring. Additionally, customers with iPhones and other select devices can use the free AT&T myWireless application to check data usage. The application is available for download in several smartphone app stores. Also, AT&T customers can call *DATA# from their wireless phone to check their data usage for the current billing period. They receive a free text message with their usage information. Customers can also go online to www.att.com/wireless to see all their usage information, past and present.
* Data Calculator. The easy-to-use online data calculator enables customers to estimate their mobile data usage and get a better sense for which data plan is right for them. It's located at www.att.com/datacalculator.
Customers can learn more about the new plans online at www.att.com/dataplans, by contacting AT&T customer service at 1-800-331-0500, or by visiting an AT&T retail store.
AT&T expects these new data plans to have minimal revenue impact this year and to not affect previous guidance for 2010.
@simbadogg
Yeah but, you have to realize that there are a shit ton of people out there that watch youtube videos and surf the web CONSTANTLY, which you don't seem to do, on TOP of all the stuff you do, so honestly, yes, it is incredibly easy to blow through 2gigs a month, i consider your use LIGHT use. This move they made would not be a terrible one if they would have left a possible unlimited option for people.
@jon
I agree, I can call your phone if i wanted to right now...fail man...fail
@jon you cant make out my account number so i could care less of people can make out the numbers as if i get spamed on them i'll just change them for free with a 5 min call to CS also if anyone can make out my last name with three letters than props to them it be easier to find info about me by Googleing this user name
Whysofail, AT&T?
being a Sprint customer just gets better and better. You just can't beat the 70dollar plan they've got goin.
@benchase7 after reading this about at&t, i can relate to you! lol
@benchase7
You can with T-mobile's 60 dollar plan.
im really happy about the $15 unlimited plan, but i still think they should have kept the $30 unlimited plan though...ala ipad. :)
i want to keep my $30 unlimited plan, but i am getting the new iphone in a few weeks (maybe even next week?). i know the article and press release says that the $30 unlimited plan users are grandfathered in, but maybe itunes/apple store will force me to pick one of the new plans when i activate and buy the new iphone, even though i already am an existing iphone 3GS user. will at&t make me get rid of my unlimited data and get the $15/$25 data plans?
Not everyone needs "unlimited" usage. Most people just do casual surfing on their phones or use a little data within apps. Not everyone needs to be connected to their laptops like most of the people on this website.
this is BullCrap!!!!!! they hyped up the ipad by saying true unlimited and now they wanna put a cap on it!!!??? i should take my ipad and shove it up an at&t saleman butt... yes the iphone has to leave at&t now!!!!
@allmaddenpr
You can keep the $30 plan if you already have the iPad. New customers after June 7th will get the $25 option.
@Waltah
But the promise was unlimited for $30/month pre-paid with no contract, letting you stop/start the service anytime you needed it. Now if you decide to stop your $30/month data service for one month, you'll be screwed if you want to start up the data service again.
This is terrible! AT&T's plan with more data intensive and capable devices is to limit the amount of internet permitted without *extra* fees tacked on, which will assuredly cool internet usage on phones and make them a platform that cannot contribute to the internet as readily as the technology behind them will allow. I dislike
why would anyone stay with AT&T ? not really sure why you have AT&T in the first place . I guess you wanna look cool with your iphone . i say good luck with your new data plans and your new ETF fees for your iphone 4 . not 4g just 4 . I burn through 2GBs a day . my bill with this plan would be insane . maybe there is a app to tell me how much AT&T is ripping you off with the closed "exclusive" iphone . run along lemmings .
@TickLe MY eLMo
call it and i'll use my old palm pre to text bomb you with is easy as pie on that dang thing as it lets u send thousands in minutes because sends one every time u hit enter even if it has to que them trust me ive done it a few asshats that harassed my mother and they got charged 12cents per message D : needless to say it was one hell of a phone bill
I guess I'm the only person who's kind of happy with this change? Looking at my bills, I've never even gotten close to 200mb/month. Saves me $15/month.
Some of you guys are such crybabies. I get 1GB per month for my iPhone, and that's an extremely generous amount of data in my country. On the biggest carrier here, depending on the plan you choose, you get between 50 and 500 MEGABYTES. So stop whining, you have it good. 2GB, I wish!
@DefPoet
Well, there is skype, there are free calling services, there is always the land line, so yeah, fail still :).
@DefPoet OK since you murdered the English language numerous time i think its time you head to bed. I'll even sing you a lullaby till you fall asleep
Powered by the iFail.
Really? 2GB of data use? hahahahah
*shakes his head in dismay as he goes back to chillin on Sprint*
Friday anyone?
@NemZero yes im ready for my EVO . cant wait tell friday im going to blow through 2GBs buy noon . just so i can laugh at AT&T peeps . yes I am happy with sprint and there simply everything plan with no caps .
@TickLe MY eLMo
:( *cries* cell phone numbers are disposable to me since i started using google voice
This has to happen some time or other. Seems kind of expensive, but I think the market will eventually even out. I don't think it's right for everyone to pay the same exact amount for their cell phone use. I think the griping and complaining is for two reasons. A) Status quo bias. and B) because the cell phone companies haven't faced *real* competition in so long that we all know in our guts that they aren't going to make the switch to tiered pricing realistically.
My gut feeling is that the right price here is about $7-12 per gig per month. Where it's probably $12 right now and once everyone got into the tiered pricing game it'd be about $7.
Think about it this way. Imagine if your mobile operator wanted you to use your phone as much as possible? Your phone comes with a tether quick access widget on the home screen. They are scrambling to release the next awesome 4G phones out, so that you can suck down more data quicker. As opposed to the situation now where the operator doesn't want you using the device in unapproved ways.
The bottom line is that a switch to a pricing model where the people who use more pay more is good for resources. And spectrum for data communication is a resource. Imagine if everyone paid the same amount regardless of how much they used for electricity? It would be insane. If unlimited plans never existed, people would think it was insane to switch to them. Unfortunately AT&T seems to have gone off the expensive edge, which I think will cost them iPhone exclusivity, and force them to be more competitive.. eventually.
@esper256 Are you AT&T's representative?
@lightwave If I am, I haven't been receiving my paychecks recently. I have a Droid on Verizon. Left AT&T when they refused to get on the more open platform.
$15 for 200MB data, Is it a joke? And why there is now unlimited plan.
sounds lame to me. I blow past 2gb every damn month. I often blow past 5gb. f this.
is it me or is sprint the most logical choice.. For 70 a month I get:
unlimited mobile to mobile (thats ANY carrier)
unlimited data
unlimited text
450 any time mins (nights start at 7.. NOT 9)
BIS
GPS Navigation
Sprint TV
...all for $70
AT&T is VERY stupid. I can't believe theres a 2GB limit. hahaha. i thought 5GB was a little bit.
@TickLe MY eLMo
thanks for the heads up new tactic
anyone who calls me will have their number posted to /b/ with a pic of my sister *wanting to chat with some /b/rothers*
@DefPoet
Alright, so hopefully I can use the device a good amount. If I can get 6 or 7 gbs out of it I'd be perfectly happy.
I'm looking up the myWireless app on my iPhone and it says that in 14 days I have used 3649.35 MB of data. Call me an idiot but what does that equate to in GB's? I can't for the life of me remember the number of MB's equal to the number of GB's.
@DJ Megatron That's ~3.6GB, so sounds like you'd be looking at $50 worth of data.
@DJ Megatron
If I'm not mistaken, that's 3.65 gigs of data you have just used up.
@DJ Megatron
There's 1024MB in a GB.
@DJ Megatron Did anyone notice the quote "AT&T points out that 98 percent of its smartphone subscribers use less than 2GB a month" If I'm not mistaken was AT&T recently explaining that they may implement a tiered data pricing scheme because of a select few subscribers using too much data and ruining it for everyone. So it was 2% of their subscribers?
@DJ Megatron WAY over 2GB.
At any rate, I give Verizon a week to match this to a tee. Sprint and T-Mobile will then make a big deal about how they don't screw over their customers this way.
AT&T is playing it sorta smart here. First off, they're likely going to subsidize the iPhone less due to the lower plan requirement. The next-gen iPhone will probably start at $300 instead of $200.The 3Gs will drop in price though, to placate some people.
Second, people are going to be all over the dead-simple iPhone tethering. Boom, $20 right there. Then they'll use a few GBs of data and shell out at least $10 in overages per month. Now we're over the $30 unlimited that iPhone 3G/3Gs users originally paid. Bingo!
For the iPad, you had better hope you're on WiFi most of the time; 250MB will be okay for every-once-in-awhile usage but if you're using the iPad on 3G regularly you'll blow through 2GB without issue. It's fortunate that overages are finally in line with before-overage pricing ($10 per GB vs. $12.50 per GB) but the lack of an unlimited option isn't so hot.
@absolutejustin
Thanks. I couldn't remember if it was that or 1500. Either way I will be sticking to my $30 unlimited plan. When my contract ends in December I will be jumping ship to Sprint or T-Mobile and save some money.
not happy. 2gb? then $10 for every gb. they do this now when the new iPhone is set to be even more data heavy? iTunes streaming, iChat, ABC, Netflix or Hulu or whatever. really disappointed. unlimited is dead?
@Pure Calculus
unlimited isnt dead, just go to sprint, ive used up to 20gb on occasion with no charging
time for a class action against the monopolistic behaviors of attws, screwing the eng user as usual
I'm paying $5.99 for real unlimited data on T-mobile's lighting fast HSPA+ network: http://i252.photobucket.com/albums/hh3/josesxi/7aed4b3a.jpg
Suckers!
I'm wouldn't be surprised if, sooner or later, Sprint follows AT&T and (pretty soon) Verizon down this path. I think the days of "unlimited" data are coming to a close...like it or
not.
by the way since its a TOS modifacation its time to cancel service
@Ops
If you're under contract prepare for ETFs. Since you get to keep your current $30 "unlimited" plan nothing really changes for you. Unless, of course, you get a new smartphone, at which time I'd say you HAVE to change. That's usually how they do it.
@absolutejustin
AT&T says if you are a current user with the $30 unlimited you can keep it even if you upgrade to a new smartphone, including the iPhone. So that is awesome. I'm keeping mine.
So this means June 7th we get the new iPhone.
@taoprophet420
shock
@taoprophet420 nope "Everything launches on June 7, except for iPhone tethering -- it'll launch when OS 4 does"
@raphymartinez Yes, I noticed that later, but hope it still means a June 7th new iPhone.