AT&T just came out with updated data plans this week, to be effective June 7th which is coincidentally the same day as the new iPhone announcement. If you’re reading this, chances are that you already know about the new data structure and the end of “unlimited” data plans so I won’t get into the details of what has changed (see previous link for that).
You may be astounded that AT&T would even think to do such a thing. After all, anyone with a smart phone has grown accustomed to uninhibited access to the web for virtually the life of their phone; particularly iPhone users. However, according to AT&T, the change should not affect 98% of their customer’s day-to-day phone usage and will only lower their bills. That is because 98% of AT&T customers use less than 2GB/month which soon will be their highest data plan and is $5/month cheaper than the current unlimited plan.
On this point, I completely agree. Aside from my brief foray in jailbroken tethering, I’m a self-proclaimed iPhone power user and can only manage to use 200MB a month on average. Even with the upcoming video conference capabilities of the new iPhone 4G (or iPhone HD), I doubt that 98% of us will ever find ourselves breaking the new 2GB barrier; at least for the near future. If we do, AT&T is kind enough to send three free texts at 65%, 90%, and 100% capacity to inform us of our current data usage.
So all is right in the world now, AT&T did their customer base a favor and decided to cut everyone’s monthly bill, right? WRONG!
Rollover Data
While it’s nice to save on all the unlimited data that 98% of us didn’t need anyway, now we’re all paying for a discrete amount of data per month. Similar to the way we pay for a set amount of minutes a month. Well with minutes, you get to keep the ones you don’t use through the rollover program. Where is the rollover data?!
If AT&T has distinguished itself all of these years by offering rollover minutes, they should be providing the same buffer for data users since, essentially, the same business model now exists for data. I’m very surprised that there has not been more uproar in the media about this point.
Tethering
iPhone users will [finally] be allowed to tether. While the fact that the rest of the world has been able to do this for a year already is another story, it seems deplorable to me that AT&T will charge an additional $20/month just to utilize the option but not provide any more data. $20 more per month and you’re still stuck with 2GB? That is just insane to me because while 98% of customers may not be using more than 2GB with just their smart phones, I can guarantee they will be easily using this once they tether. One 40 minute episode on HULU, high quality, tethered to your phone will burn through ~400MB, that’s almost 25% of your monthly allowance.
iPad
I am very confused about how the revolutionary iPad could be released only a month ago with one of the main selling points being unlimited 3G data access, where as now customers will be confined to 2GB/month. I seriously doubt the 98% statistic AT&T has been touting includes all the new iPad users. Especially if we are all now in the “post-PC” era and tablets will become the new status quo, as Steve Jobs recently predicted. Yes, you can use WiFi while you’re at home, but if you’re ditching your PC for an iPad, why should you need pay for WiFi anymore?
For the most part, the data plan restructuring from AT&T will undoubtedly save a majority their customers’ money. These savings are only a surface view though. Technology is rapidly becoming mobile. For instance, mobile data usage is predicted to grow by 39x by 2014. With these kinds of numbers and increased focus on cloud based storage and streaming content, 2GB looks like a smaller and smaller number. David Pogue of the NYTimes thinks that once all of this technology becomes commonplace new, higher capacity data plans will exist; but I disagree as such technology is on the cusp of being the norm (cloud based iTunes and AppleTV anyone?). I’m sure AT&T won’t be so pro-active in updating there data plans when this time comes. They will be too busy profiting from all the data overages their customers are paying so they can utilize current technology their smart phone plans from the past would have appropriately covered.
All existing AT&T customers will have the option to keep their current unlimited plans, but if you want tethering or a new plan than this option disappears. So with all other mobile carriers expected to soon follow AT&T’s lead, are we all being forced to forever lock ourselves into one carrier from fear of reaching data capacity?


2 comments
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June 9, 2010 at 7:39 pm
Alex
The D8 interview shed a lot of light on the AT&T situation. I guess he is convinced that the growing pains they’re currently going through would have been prevalent with any of the US carriers, had they been selected instead of AT&T. He made a quick comment indicating that he’s giving them until the end of the summer to show performance improvements.
I was kinda pissed off about the data plan changes at first, but just like you, I realized I’m only using a measly 200mb/month. It made me realize more and more that toward AT&T is just trying to preserve their network with the new influx of iPads. It is a tough situation to be in because they’re paving the way for the rest of the industry but at the same time, the old-skool infrastructure is a major bottleneck.
The thing that I’m stuck on is, what is going to be the wireless medium that gives us ubiquitous connectivity to the world wide web? Like, in our cars, and everywhere else we find ourselves day to day. We have seen such slooowwwww improvements with cell networks over the years and AT&T’s growing pains are a prime example. Are we really relying on AT&T, Sprint, Verizon and AT&T’s _voice_ infrastructure to bring us through the _data_ revolution? If so, this is going to be one hell of a slow revolution.
By the way, I saw you linked to the highlights of the Jobs interview. Here is a video of the full 90 minute interview. Some of his more candid moments in the interview (when he veers off the script) provide an interesting glimpse of what lies ahead.
http://www.intomobile.com/2010/06/07/steve-jobs-d8-video-interview-now-available-full-and-uncut.html
June 9, 2010 at 7:49 pm
jsticca
Thanks for the link. Stay tuned for the next post before you upgrade to the new iPhone and downgrade your plan.
Hanging onto to that unlimited data option will be invaluable for the future, especially since anyone owning an iPhone should have it jailbroken so they can tether for free. This REALLY applies to anyone who already owns an iPhone and is considering getting an iPad as well. There is no reason to get the 3G iPad when you can just tether your iPhone internet for free; hopefully with no data restrictions.