About a month ago, amid buzz and hype about yet another new iPhone release, word got around that AT&T might consider lowering data rates amid pressure from Apple. This is not a pretty issue for AT&T. They have an exclusive agreement with Apple for the iPhone which supposedly expires some time in 2010. AT&T wants to extend this deal, but Apple holds the cards. Lowering data rates was considered one way AT&T could convince Apple to extend the agreement, but recent comments by AT&T spokesman Mark Siegel make that seem an unlikely scenario.
Siegel noted that AT&T has “been very happy with our pricing,” and had no plans to lower data rates from $30 per month back to the $20 which was charged for the original iPhone back in 2007. iPhone users now purchase a bundled voice and data plan, and the idea was that minimum would drop from $69 to $59 for the lowest tier. Unfortunately, it appears that will not be the case.
This isn’t to say that AT&T won’t undertake other creative endeavors to make the iPhone even more attractive to consumers. As many gadget blogs have noted, MMS and tethering capabilities will not be available immediately upon the iPhone 3G S’s release. Instead they will be coming sometime around August. Could AT&T be planning to sell them as an upgrade? They could, for instance, knock down the minimum to $59, but charge an add-on price for the tethering and MMS. It wouldn’t make data-heavy users happy, but it would be one way AT&T could offer lower rates to those who don’t use the extra services.
For the past few months, maybe close to a year, AT&T has complained of iPhone users consuming disproportionally high data levels. Lowering the price of data plans would certainly bring the iPhone to more consumers, but it would also put an even greater strain on AT&T’s 3G network. This is probably one reason they’re not offering a price cut right now. They’ll have to gauge the demand for the iPhone 3G S and see how much more data flows through their network. After then, perhaps, they can create a new pricing structure.
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