Apple and AT&T Announce iPhone Service Plans

daveschroeder writes "Apple and AT&T today announced service plans for iPhone, 4 days before its release in the US at 6pm local time on Friday, June 29. The plans are $59.99/mo for 450 minutes, $79.99 for 900 minutes, and $99.99 for 1350 minutes, and all include unlimited data, 200 SMS messages, rollover minutes, and unlimited mobile-to-mobile calling. Any other standard AT&T service plan may also be used. A two year service plan is required, with a $175 cancellation fee if terminated early. In addition, activations are done via iTunes, so only the hardware is purchased in the store. Interestingly, activation of a contract via iTunes is required to enable the iPod/syncing functionality of the phone as well. (It will remain to be seen whether there are workarounds for this for those who only want the iPod functionality of iPhone, and whether the iPhone is easily unlockable for those who wish to try it on alternate carriers, and so on.)"

A few other notes

[daveschroeder]

- iPhone DOES have a user-accessible SIM tray.

- Since one would presume the iPod functionality of the device still needs to work when the contract expires, there is probably going to be a fairly easy hack/workaround to use only the iPod functionality (e.g., perhaps just a file sitting somewhere, a la .AppleSetupDone).

- It will be interesting to see whether AT&T will unlock the phone on request, as they do for other GSM phones (for international travel and prepaid SIMs), and if that is the case, how well other carriers' networks work with iPhone (obviously sans things like Visual Voicemail).

- Still no word on battery replacement specifics, but it seems safe to assume that iPhone is the same as iPod in this respect; namely, that it is sealed and that the battery isn't "user accessible", but that there will still be plenty of ways to replace the battery [ipodbatteryfaq.com] yourself or via third parties if you so choose (battery failure under warranty would be covered by the warranty [ipodbatteryfaq.com]). I'm going to be tracking this issue here [ipodbatteryfaq.com].

- Still no word on insurance or AppleCare, but since all iPods have AppleCare options ($59 for two years), iPhone probably will as well.

- Two more days to determine this for certain, but it appears that if only the iPod/syncing functionality (or first time setup, anyway) is what is tied with iTunes activation, WiFi via the browser will probably work fine as-is without a contract. Note: it is not certain that this is the case, but it seems likely. (Just a point of information; not stating this as inconrtovertible fact. The only way this might not be the case is if the entire phone is just locked until activated, which seems unlikely.)

- Also remains to be seen how "hackable" the phone is in general. Here's to hoping.

Unlimited Data.

[Silas Palmer-Cannon]

Some carriers define "unlimited data" as some arbitrary level, which once you break you either lose service, or are charged a hefty fee. Just something to keep in mind.

Re:For the Love of Money

[daveschroeder]

Nice slashvertisement there, Dave.

So, people aren't interested in this?

Ooookayyyy...

You want me to spend a minimum of $59.99/mo. + $499 for an iPhone?

No, I don't "want" anyone to do anything, other than know that plans have been released for iPhone.

Which is what a lot of people have been waiting for.

Which is why I submitted the story.

What else can you expect from a fat cat sconnie who prides himself on the BMWs he's owned and lists his top 'interest' as Apple?

Sorry I didn't submit as AC. Maybe I will next time to please you! And "fat can sconnie". Heh.

Also, I must deeply apologize for being interested in Apple. I know it's a rare ailment, and that it must offend you greatly. I'm almost shedding a tear!

Re:Unlimited data, eh?

[eric2hill]

What makes you think the iPhone will run voice calls over IP? It's a traditional GSM phone that uses EDGE data to provide additional services including the visual voicemail. But calls go over the traditional cellular network just like any other phone.

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Re:iPod functionality

[matthew.thompson]

Because there isn't an iPod with 3.5" touchscreen?

It's a great looking iPod and I'd be tempted if it were a little cheaper even with just 8Gb. But I live in the UK so we're not going to see it until Christmas anyway.

Re:Plans are not cheap

[ryanov]

That's actually not expensive -- I was surprised to see how low they were. Verizon's 900 minute plan is $99, and the cost of a Treo is really not a lot less than the cost of an iPhone (I think it might be more). When I had T-Mobile and a Treo 650, I was happy with the price I was getting (though it included WiFi in Starbucks and wherever else they controlled WiFi), and I was paying $58 for 300 mins and unlimited data. It would not surprise me to find out that these plans are cheaper than other unlimted data plans that AT&T offers.

Re:For the Love of Money

[daveschroeder]

Nope. I don't sell cell phones (and never have), don't work for Apple or AT&T/Cingular (and never have), and I won't have anything to do with iPhone sales (other than buying one myself on Friday).

I just submitted it because one of the most awaited pieces of information about iPhone was its plans, and since every other story here and on other tech blogs lately seems to be about iPhone...well, you get the idea.

Re:Unlimited data, eh?

[gad_zuki!]

Ive run skype over a cell phone used as a modem and even with EVDO speeds the latency and dropped packets are pretty bad. I doubt EDGE will be much better and I'm certain plain-jane GSM will sound much, much better. I also wouldnt put it past cell phone providers to make sure that voip gets either blocked or the lowest priority on the data network end of things.

SOCIAL SECURITY NUMBER? WTF?

[dpbsmith]

From this announcement: [apple.com]

System Requirements ...iPhone activation requires an Internet connection; an iTunes Store account or a major credit card; a valid Social Security number (as required by AT&T); the latest version of iTunes available at www.itunes.com and a PC or Mac with a USB 2.0 port and one of the following operating systems [blah, blah, blah...]

Social Security number? WTF? This is 2007, companies that want my business should need my social security number.

As the Social Security Administrationtells us, [ssa.gov] "Your number is confidential... You should be careful about sharing your number with anyone who asks for it (even when you are provided with a benefit or service)." I reluctantly give it to banks and brokerages who need it for tax purposes. I very, very reluctantly give it to medical organizations.

A phone company? No, thank you.

Re:For the Love of Money

[cayenne8]

"You want me to spend a minimum of $59.99/mo. + $499 for an iPhone? "

I dunno what the big deal is. In the US, you buy a phone and you're signing a 1 or 2 year contract, that is the norm here.

My phone with SprintPCS is about $80/mo, unlimited nights and weekends...I think about 1000 anytime minutes, SMS is extra, but, I don't use that much, nor do I ever come close to the daytime minutes. I have the full Vision plan...unlimited data, picture mail...and since I 'unlocked' the bluetooth modem capabilities in my Samsung A900...I can tether it to my laptop as needed.

The latter point, is the main reason I'm not going with the iPhone in Jan. when my current contract is up. It isn't price, it is the stated fact [macworld.com] that iPhone will NOT allow tethering to a laptop as a modem as part of their 'unlimited' data plan.

The price and monthly cost is no big deal to me....but, I want my tethering capability.

Re:SOCIAL SECURITY NUMBER? WTF?

[stefanlasiewski]

All of the major cell phone companies require a SSN to do the credit checks...

Once more, if you loose your password to the AT&T or Verizon websites, I have seen both sites require a SSN for password recovery.

Tracfone and some other pay-as-you-go plans don't require any such sillyness.

There's method to that madness...

[C10H14N2]

IIRC they have a blurb in the TOS of the $20 plan saying you may not use the handset as a modem and they certainly do their damnedest to try and prevent you from using that feature, though basic GPRS is pretty crap on their network. I just got a 3G data card and they want $50/month for "unlimited" data for that.

I wonder if the SIM card trick would work on it. I mean, they had to assign it a telephone number (quoi?), so methinks they might not be able to tell the difference.

Re:If everyone jumped off a bridge

[cayenne8]

"Aren't most calls made from a mobile phone to another mobile phone?"

No, if I had to think about it...most of my minutes are cell phone to landline. I don't have a landline anymore (ditched it after becoming a nomad post-Katrina). But, I mainly use my phone on weekends to talk to parents, and friends using the free long distance (weekends and after 7pm weekdays). I usually try to call my friends on their landline number first...and if no answer, I leave a message on the machine, and then try their cell phone number.

I don't know that many people that have 'cut the cable' as I have....so, I definitely call more landlines than I do cell phones.

Re:Ah ha!

[rcs1000]

Its actually for the reasons that they stated. I know the Slashdot set is rife with conspiracy theories but Apple and AT&T simply want to avoid the nightmare that other phones cause, such as Treos and WMobile devices of being returned when the user installs some instable 3rd party app and of course they go home and reload everything that was on the first phone onto the second phone causing another return, repeat repeat repeat.

Wow: nice conspiracy theory. According to Merrill Lynch, return rates at HTC (the world's largest maker of Windows Mobile phone) at 2.2%, against an industry average of 3%. So, those "nightmare" return rates are... made up.

Re:Unlimited Data.

[cyngus]

http://www.wireless.att.com/cell-phone-service/leg al/plan-terms.jsp [att.com] contains the usual cellular crap language. Basically, you can't use it for video, movies, music, aka "any service we'd like to gouge you for because we don't believe in net neutrality." I suspect that this clause is legally unenforceable and eventually a suit will go forward on this. It seems like if you ran a VPN (which is allowed) that handled all your traffic, they wouldn't be able to discern the type of data you were transferring. Bits are bits GD it!

Re:A few other notes

[timbck2]

I really wish that Apple would have cut a deal with more than one mobile phone service. AT&T is not my ideal wireless company.

In the US, they only had two choices, if you make the assumption that Apple didn't want to manufacture different versions of the phone for different markets (GSM vs. CDMA): AT&T and T-Mobile. Those are the only two national GSM carriers.

Once that's established, Apple really had no choice but to go with AT T-Mobile just isn't big enough, doesn't have the amount of coverage that AT&T has. I'm not happy about it either, because AT&T's service sucks in my area (northern New Mexico). Besides, I still have a year to go on my Verizon plan.

Re:A few other notes

[Paradise Pete]

Does this posting imply that in order to use Apple's iPhone, I have to get a WHOLE NEW (and much more expen$ive plan)?

From TFA: "In addition, iPhone customers can choose from any of AT&T's standard service plans."
So it seems you can keep your current agreement.

Re:Very reasonable...

[poot_rootbeer]

Can this bring to an end the theory the phones are, in fact subsidized?

I don't see why it should. The iPhone service pricing seems pretty much on par with similar offerings for other handsets and carriers (except Verizon, who deigns to charge two arms, a leg, and several teeth).

The carriers' goal is to get as much money from each service contract as they can. Maybe in cases where the handset cost is subsidized, the carrier doesn't have much of a profit margin; but that should not be taken to mean that a non-subsidized handset would mean the carrier would charge less for service. They'd continue to charge what everyone else is charging, and just keep as profit whatever doesn't go towards handset subsidies.

Re:Unlimited Data.

[MatchbooksAndSarcasm]

I had verizon's 'unlimited' plan a while ago, and took it to be just that. After a month of remote desktoping, music and video dl-ing (some of which was even legal), I found that my service wasn't working anymore. I called Verizon, who told me that they'd detected abuse, based on the fact that I'd gone over the usage limit (that I hadn't been told about) on my 'unlimited' account, and they summarily canceled my service. At least they let me return the PC access card (still burned me with the restocking free, though). I'm on AT$T's 'unlimited' plan now, but since I just use it with my blackberry, I can't imagine I'm in danger of going over. But, I bet their 'unlimited' plan is just like verizons....quite limited.

Re:+ unlimited data + SMS

[Anonymous Coward]

SMS transfers are done on the same protocol layer as the call connections. That's why they're limited & more expensive. That's also why they're so limited in length.

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Re: Treo 650, etc.

[embsysdev]

Google makes a version of Google Maps explicitly for the Treo as well as other smart phones.

http://google.com/gmm/treo [google.com]

Re:Alternate Carriers

[funkyloki]

Just to clear up a point, AT&T will only give you the unlock code after one year of continued service, and in some cases, the rep will not have any idea what you are talking about or refuse to give you the code. In other cases, AT&T will email you the code, but this has taken up to a week to receive. They will in no way give you the code over the phone. ALWAYS ask for a supervisor when you call for unlock codes from AT&T. BTW, T-Mobile will give you the unlock code via email within 48 hours after 90 days of service. And to qualify, I sell phone services and equipment for all the major providers for the last three years. One of the issues I am having as an indirect retailer of AT&T is that I get paid an activation commission, but I have to do the activation. If I were able to sell this phone, I would have to sell it a non-subsidized price, in order to make anything on it, since the activation is done through iTunes. Just one more way for AT&T to squeeze out the little guy, which has been their MO since August 2005.

Teathering not allowed on SprintPCS either!

[Anonymous Coward]

Hey, you may want to read your contract for unlimited data on SprintPCS --it expressly forbids laptop teathering; however, they seem to have a policy of not billing for the teathering if it is only occassional and if you connect in to #777 rather than to a third-party dial-up line. On the other hand, some people have reported receiving multi thousand dollar bills out of the clear blue sky (for the current billing period) after months or years of never having been billed for such usage and having to adjudicate the issue through SprintPCS' executive department. Check the Sprint Users Forums for more testimonials/info.

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