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AT&T Mulls iPhone Price Plan Drop
To spur sales among more cost conscious consumers...
by Karl Bode Thursday 07-May-2009 tags: prices · business · wireless
According to Cote Collaborative analyst Michael Cote and Scott Moritz over at The Street, AT&T is considering a $10 price cut for the iPhone's monthly service plan when Apple introduces a new video-centric version of the iPhone next month. According to the analyst, Apple and AT&T haven't been happy with iPhone sales to the broader public, particularly in mass market stores like Walmart. To boost sales, AT&T may trim the entry-level plan from $69 to $59, reducing the cost of a two-year contract by $240.

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Bit
Premium
join:2009-02-19
00000

Not really a price drop

They're just reversing the price insane increase they had taken. When they went to 3G they took a 50% price increase (from $20 to $30) on the data portion of the iphone plan while at the same time dropping the free texting that was included in the old EDGE plan. The move to 3G ended up being a double price increase.

BobbyV

@witopia.net

Re: Not really a price drop

of course not, besides when I am overseas i am not able to use that plan b/c it is only for domestic. what att should do is introduce pay as go or prepaid plan but att is stupid greedy company and i will let foreign carriers get my money.
no wonder country went to recession with such morons and their reps are rude

doublea

join:2007-06-04
Petaluma, CA
I agree,

The original iPhone had a $20 fee for 200 texts + unlimited web. and additonal texts were $0.05.

The 3g phone was $30 for internet only +$5 for 200 texts, and additional texts are $0.10

This is the only reason I have stuck with my original iPhone, its more than $15 less each month.

So when compared to the original iPhone, the new one would still cost $5 more a month.

If they do a $10 price drop and make a reasonable cap on the new plan, (oh say 1gb)(I have used less than 4gb of data on my original iPhone in 2 years.) then I will buy the new iPhone in a flash.
cchhat01
The Guru

join:2001-05-01
Elmhurst, NY

Good

But thats still not enough to convince me to stoop over.

tiger72
SexaT duorP
Premium
join:2001-03-28
Saint Louis, MO
kudos:1

Re: Good

And ATT's network still sucks, with 3g speeds as slow as EDGE in more populous areas.

Bit
Premium
join:2009-02-19
00000

Re: Good

Not for me
bn1221

join:2009-04-29
Cortland, NY

Re: Good

myvzw is Verizon. How did you manage that on your iPhone?

Bit
Premium
join:2009-02-19
00000

4 edits

Re: Good

DSLR always reports all my AT&T 3G cards as Verizon. AT&T and VZW are members of some WDSPCO wireless co-op which is what my 3G IPs all resolve to.

I thought it was some kind of roaming, but others mentioned that is not possible »Re: What IP does frys dot com resolve to

djrobx

join:2000-05-31
Valencia, CA
Same for me. I see "myvzw.com" on AT&T frequently.
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Nightfall
My Goal Is To Deny Yours
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said by tiger72:

And ATT's network still sucks, with 3g speeds as slow as EDGE in more populous areas.
All depends on where you live. Where I am, the 3g network is awesome. Blanket statements like "It sucks" really doesn't prove anything, especially on this forum.

chiadi

@rr.com

Re: Good

Agreed.
Excellent 3G coverage here in Birmingham, Al. FULL BARS everywhere.

tiger72
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4 edits
said by Nightfall:

said by tiger72:

And ATT's network still sucks, with 3g speeds as slow as EDGE in more populous areas.
All depends on where you live. Where I am, the 3g network is awesome. Blanket statements like "It sucks" really doesn't prove anything, especially on this forum.
read again. Not a blanket statement. Emphasis on "in more populous areas"
said by k1ll3rdr4g0n:

said by tiger72:

And ATT's network still sucks, with 3g speeds as slow as EDGE in more populous areas.
Wheres your proof?
Someone posted their speed test, want me to post mine? Or are you afraid you might be wrong .
»forums.wireless.att.com/cng/boar···id=55200
»www.lockergnome.com/osx/2009/04/···ownhill/
»yro.slashdot.org/article.pl?sid=···from=rss
»www.businessinsider.com/att-fail···t-2009-3
»sprintconnection.kansascity.com/?q=node/748
»news.cnet.com/8301-17938_105-10031551-1.html

Pick your poison. Different sources at different times come to the same general conclusion.

Hell, search forums around the web (like) HowardForums and you'll see people using ATT's 3g and comparing it to T-Mobile's EDGE network on speed. That's just sad.
»www.modmyi.com/forums/t-mobile/4···t2876671

As for the speed test, is myvzw synonymous with ATT?

btw- all those edits have been to add links
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Bit
Premium
join:2009-02-19
00000

4 edits

Re: Good

 
 
You can pick ANY service and find people complaining about speed issues. Even here we have reviews of people having issues with FiOS. The fact is that a blanket statement of AT&T 3G speeds being slow is horseshit. I routinely see 1500-2000kbps down and 900-1500kbps up from my AT&T 3G service.

And yes, with DSLR myvzw can cover AT&T as they are part of the same Wireless Co-Op WDSPCO »www.wdspco.org/ . Whenever I pull an IP from that Co-Op, DSLR says it's Verizon Wireless. It is certainly not that my AT&T cards are magically using EVDO.

Just did 2 more speed tests today with my AT&T 3G service and IP resolves directly to AT&T Business and as you can see I'm getting excellent throughput.

Depending on where I am in the county I may or may not get the coop but speeds are always fast.

EDITS - Added speed test results, links to WDSPCO coop and other assorted rantings.
k1ll3rdr4g0n

join:2005-03-19
Homer Glen, IL
said by tiger72:

And ATT's network still sucks, with 3g speeds as slow as EDGE in more populous areas.
Wheres your proof?
Someone posted their speed test, want me to post mine? Or are you afraid you might be wrong .

kevinm5

join:2008-05-27
Chico, CA
said by tiger72:

And ATT's network still sucks, with 3g speeds as slow as EDGE in more populous areas.
at&t 3G is actually very fast where I live and in San Francisco. Do you have proof that it's soo slow in Saint Louis,MO or spreading FUD?

ThrowDemsOut
If you can't convince 'em, confuse 'em
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1 edit
said by cchhat01:

But thats still not enough to convince me to stoop over.
Aside from any AT&T issues and speeds, the big problem I have observed with friends who have the iPhone is how mediocre it is as a phone. Sound quality is poor & the phone drops calls.
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Matt
All noise, no signal.
Premium
join:2003-07-20
Jamestown, NC
kudos:12

Re: Good

said by ThrowDemsOut:

said by cchhat01:

But thats still not enough to convince me to stoop over.
Aside from and AT&T issues and speeds, the big problem I have observed with friends who have the iPhone is how mediocre it is as a phone. Sound quality is poor & the phone drops calls.
I've never had sound quality issues, but good lord if calls don't drop more often than crappy rap songs.

AVD
Respice, Adspice, Prospice
Premium
join:2003-02-06
Onion, NJ

my thoughts exaclty.

They will rob peter, pay paul, and end up charging more.

n2jtx

join:2001-01-13
Glen Head, NY
Reviews:
·Optimum Online

Maybe Another Carrier

If they want to sell more iPhone's, perhaps they should look at additional carriers becides AT&T. I for one am not willing to scrap my current carrier for AT&T just so I can have an iPhone. I am sure I am not alone in that sentiment.
--
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Luwigie
Premium
join:2002-06-06
East Lansing, MI

Re: Maybe Another Carrier

Uhm, if AT&T wants to sell more phones they should consider more carriers? This applies to the network carrier's prices not the hardware manufacturer's.
cchhat01
The Guru

join:2001-05-01
Elmhurst, NY

You know what grinds my gears...

When AT&T sckyrockets the cost of the data plan as it moves to 3G and yet its 3G network is still nowhere close to its 2G network in coverage and call quality... The sheer thought just baffles me...
Its like they just want my money... And folks hungry enough for the Iphone are just going to cha-ching their wallets.

And that, people, is what grinds my gears! Back to you Tom!
--
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PhoenixDown
-- Wants FIOS
Premium
join:2003-06-08
Fresh Meadows, NY
kudos:1

Re: You know what grinds my gears...

And their 2G network still isn't anywhere as reliable as their old (original ATTWS) TDM network. I get dropped calls in the weirdest of places.

Nightfall
My Goal Is To Deny Yours
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Grand Rapids, MI
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A valuable lesson

As I read through these comments, about half of them are bitching about the 3g service and asking how AT&T could sell something so bad. My response is simple. Its one everyone here on this site should know.

The service you get in area A is not the same across the US.

These are the same ignorant statements that everyone laughs at when someone posts that "DSL Sucks" or "Cable sucks". The service is so area dependent. If it works for you, then great. If it works in your area, then great. You should pay for it. If it doesn't work, get a new provider. Its not like you don't have a number of wireless providers to choose from (unlike cable or dsl).
--
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BobbyV

@witopia.net

Re: A valuable lesson

what other provider ?
can you read ?
AT&T is the only one in US with right to sell iphone

Nerdtalker
Working Hard, Or Hardly Working?
Premium,MVM
join:2003-02-18
Tucson, AZ
Bingo. That definitely applies for all the other carriers as well, which iPhone/AT&T customers are quick to also trash on just as readily.

Until we have someone driving around doing speedtests and populating a map+database of some kind (which would be amazing), I'm sticking to only talking about the area around me and the experience I've had with devices I've tested. I suggest everyone do the same so we all stop spreading the FUD.
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Selenia
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Lanesboro, MA
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Very true. AT&T is mostly reliable in my area for calls. The Edge network is pretty good or kind of bad in my county, depending even just on which part of town you're in. To the North, it's pretty poor but very good to the south. The 3G network is not available here but excellent to my East and OK to my west(still faster than Edge). Within those areas, speed varies quite a bit. I'm just giving an average. Just goes to show you the statement on providers being different by area rings very true.

hayabusa3303
Over 200 mph
Premium
join:2005-06-29
kudos:1

.

Wow 10 bucks, and they will find a way to make up for the lost money in NEW taxes and fees.

gigahurtz
Premium
join:2001-10-20
Palm Coast, FL
Reviews:
·RoadRunner Cable

Drop the price, NOW!

I would love for AT&T to drop the price of the data plan. I pay $30 a month for EDGE speeds. I was told 3G would be in my area the first quarter of 2009. Of course, that didn't happen.

I recently canceled my data plan because of the slow speeds and they forced it back on me 3 weeks later since it's a "requirement" to have.

This price drop would go a long way in deciding whether or not I keep the iPhone (and my AT&T service).
clickie

join:2005-05-22
Monroe, MI

Perhaps

If Apple wants to sell more iPhones, they might consider ending their exclusive agreement with AT&T.

The damn iPhone could fart sunshine, but if I have to use AT&T, I'll go without. Their coverage here for phone calls just doesn't match other providers.
soccerguy

join:2004-06-28
Seattle, WA

Re: Perhaps

Bingo! That's the reason the Blackberry Curve outsold the iPhone last quarter - it's available on multiple carriers - four, I think. Newsflash to Apple: if you want more iPhone sales, let T-Mobile, Verizon, and Sprint sell it.

gigahurtz
Premium
join:2001-10-20
Palm Coast, FL
Reviews:
·RoadRunner Cable

Re: Perhaps

said by soccerguy:

Bingo! That's the reason the Blackberry Curve outsold the iPhone last quarter - it's available on multiple carriers - four, I think. Newsflash to Apple: if you want more iPhone sales, let T-Mobile, Verizon, and Sprint sell it.
The article speaks of AT&T and APPLE not being happy with sales. I don't think AT&T will be thrilled if Apple starts selling iPhone's on Verizon.
soccerguy

join:2004-06-28
Seattle, WA

Re: Perhaps

I completely agree that AT&T would be very unhappy to have the exclusivity agreement end. However, at the end of the day, it is Apple's product, and if Apple wants more sales, then I think it needs to offer the product to multiple carriers.
fiberguy
My views are my own.
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kudos:3
I agree..

.. and further, if they want to sell more iPhones, they also can:

1) Drop the price of the over rated hardware.

2) Stop the "our phone is a premium phone" crap. It's a phone!

3) Stop the BS that I hear from the reps of "let me see if you "qualify" to have an iPhone".. this isn't a country club after all. When I heard that one day, I said "don't bother" as I already didn't like the attitude towards the product.

They need to stop trying to be exclusive & elusive that only certain people can have them. They need to stop acting like they're selling you a car. The requirements alone to get a phone makes any sane person stop and think twice automatically if this is really a good thing. I think apple has already saturated the market with all the mindless followers that think they provide oxygen into the atmosphere and with out one they can't breath.

Bootes
Premium
join:2005-01-28
Scarsdale, NY

Re: Perhaps

1) You can get refurbs for $99, I don't see them getting any cheaper.

3) I assume you mean when they check if you are far enough into your ATT contract for them to give you the discount on the phone. This is no different than what they would do with any phone offered by any carrier.
fiberguy
My views are my own.
Premium
join:2005-05-20
kudos:3

Re: Perhaps

1) Some people don't want used phones.. and the $99 refurb still holds a pricey contract and all the rest of the restrictions last I checked.. the $99 refurb is still new line only, not upgrade in contract. (Unless you know something I don't that Best Buy told me last week - and they were not $99 there)

3) No.. you assumed incorrectly. They flat out tell you "Let me see if you *qualify* for an iPhone"... the key word being "qualify".. that *attitude* alone was enough to piss me off and turn me off. Last I checked, this is America. In America, everything has a price so they need to drop the "high 'n might" attitude over the iPhone. Before she could continue on about "let me see if you qualify".. I said.. "qualify? ... I have money, does that qualify me?" .. she said "We have to see if you're able to purchase one".. flat out. Got that from two different reps. Further, when I called customer service regarding my black berry and razer phones, one lady wouldn't even discuss prices at all.. you had to "go into your nearest ATT store for that information".. I don't make this stuff up.

I just wanted to know prices, how it would affect me on my account, etc. ... there was no way in hell I was driving 17 miles to an ATT store to find out what they could tell me on the phone.

Plain and simple, they're playing games with these phones and that has to stop. The fact they are "tweaking" their product and services to gain more customers with their current model tells plenty about how tight they are trying to control a market in a capitalistic market place.

If or when they stop playing games, I may make the move from the iTouch to the iPhone.. that is unless Sprint gets the Pre out first.

Rogan

@comcast.net

They'll have to drop it more than that for me to be incented

I don't think $10 is really going to drastically up their subs. If they really want to see an impact, they should drop it by $20/month, and not make up for it in other hidden/back-end costs like extra tax-like charges that appear on the bill. We're all tired of pricing games and have learned to look for the TRUE cost of plans now. These companies just train us to be aware of their trickery.

When are they going to learn... just be transparent. And if you want a more mass market appeal, price as such. And have a reliable, broad network with enough capacity to keep customers satisfied with your service. It's not rocket science.

$20 for data with messaging included

A GENUINE $10 drop in the data plan coupled with a return to a minimal (200?) messaging plan included (in other words, back to pre-3G pricing) would push me over the edge to buying an iPhone. $30 a month plus another $5 (minimum) for messaging isn't worth it.

gigahurtz
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Palm Coast, FL
Reviews:
·RoadRunner Cable

Re: $20 for data with messaging included

said by Flibbetigibbet :

A GENUINE $10 drop in the data plan coupled with a return to a minimal (200?) messaging plan included (in other words, back to pre-3G pricing) would push me over the edge to buying an iPhone. $30 a month plus another $5 (minimum) for messaging isn't worth it.
I would love to see texting included in this package. I pay $50 additional a month on my $39.99 plan just for texting and data. I know, I know.. I choose to have it.
Crypto_Bug

join:2001-05-31
Torrington, CT

AT&T Price Drop

I have had AT&T for years but when my contract for the iphone is up in August I am dumping the service and going to Verizon and the Blackberry.

AT&T is getting worse not better, it is by far the worst I have seen ever. I have Verizon for my work cell and it works everywhere and my iphone works in less than half those places. I love the iPhone but Apple should have opened it to other carriers that actually supply good coverage.
k1ll3rdr4g0n

join:2005-03-19
Homer Glen, IL

Re: AT&T Price Drop

said by Crypto_Bug:

I have had AT&T for years but when my contract for the iphone is up in August I am dumping the service and going to Verizon and the Blackberry.

AT&T is getting worse not better, it is by far the worst I have seen ever. I have Verizon for my work cell and it works everywhere and my iphone works in less than half those places. I love the iPhone but Apple should have opened it to other carriers that actually supply good coverage.
I hate this when people generalize. Just because [insert your model phone] doesn't get good signal in some areas doesn't mean the carrier sucks, you ever think its the manufacturer? I have an old Motorola V180 (which Cingular gave to me for free back in the day), worked like a charm for me no signal issues. My $400 AT&T Tilt's reception sucks in many offices I walk into. My $400 AT&T Fuze is fairly good, at least better than the Tilt.

So, before you start saying "AT&T is horrible because I get no reception" examine the type of phone you have first before you start to point the fingers. And Do some research also, because I know iPhone users did suffer from a reception issue awhile back....
Crypto_Bug

join:2001-05-31
Torrington, CT

Re: AT&T Price Drop

I have been with AT&T and had numerous phones with them and have seen this issue with all of them.
itguy05

join:2005-06-17
said by Crypto_Bug:

AT&T is getting worse not better, it is by far the worst I have seen ever. I have Verizon for my work cell and it works everywhere and my iphone works in less than half those places. I love the iPhone but Apple should have opened it to other carriers that actually supply good coverage.
That's my experience with Verizon - Crapfest and AT&T with my iPhone is rock solid. I have a Verizon phone for work and it's horrible.
pika2000

join:2005-10-13
Seattle, WA

Just sell it unlocked

To Apple: If you want me to buy the iPhone, sell it unlocked, just like what you already do in other countries.
To AT&T: If you want to get my money for 2 years with a locked phone, give me the iPhone for free.
patcat88

join:2002-04-05
Jamaica, NY
kudos:1

death of the iphone

The iPhone is a status symbol, the concept still has alot of life left in it. Look at what Motorola did with the Razr, they began releasing it on all carriers, then made budget and premium versions, and it all fizzeled out since even grandma and the day laborer on the corner has one which killed any status it ever had.

The reason the iPhone sells is its brand name alone, many companies have their iPhone clones out, but sales are still the same. Its the same reason why someone spends $1000s on a handbag that would be $10s in Chinatown with very similar looks, if thats all they cared about.

The best strategy would be to add a few software-only features, and call it the iPhone 3.5G or 4G (if you give it a theoretical HSDPA download speed increase, even though you'll never hit 7.2 mbps on ATT). Partner with some ridiculously overpriced brand names from Nordstrom and Neiman Marcus to make "limited edition" iPhones. And be sure to do plenty of price increases. The recession only makes the important/rich people hoard money in their checking accounts, there is no reason why they can't use it right now. Apple's business model is based on its name brand, cost, unobtainability, social statement, and decent focus group testing. Sometimes they combine existing technologies, or make existing technologies have mass market appeal. Volume and price decreases would destroy what separates Apple from Dell and HP.
fiberguy
My views are my own.
Premium
join:2005-05-20
kudos:3

Re: death of the iphone

said by patcat88:

The iPhone is a status symbol, the concept still has alot of life left in it. Look at what Motorola did with the Razr, they began releasing it on all carriers, then made budget and premium versions, and it all fizzeled out since even grandma and the day laborer on the corner has one which killed any status it ever had.
In the east, the iPhone is considered a piece of crap and they give them away.

But honestly, I have to disagree with you on the Razr.. they were over rated, for one, and Motorola also started to pull back on their mobile phone development in favor of broadband products. The razr could only go so far.

Personally, the iPhone is a good phone, but still, they're making it difficult for people to get. The phone has endless possibilities as of now.. that alone will keep the phone alive.. that and they're incessant and continual slight upgrades and improvements.

dave666

@shawcable.net

This won't be a $10 price decrease

It will be a new plan for $10 less, but with a ridiculously low data cap.

cosmogrl89

@verizon.net

pricing

I do not have an issue with the pricing of the voice plan. I have an issue with the pricing of the data plan. Furthermore, I have an issue with the fact that you have to buy a data plan when buying an iPhone. Change those two things and drop the contract requirement and you have yourself a new customer.
Whereismykit

join:2002-05-15
Norcross, GA

Re: pricing

First Apple needs to make a better phone.

Not having copy and paste sucks. and not having picture msg. making me go to viewmymessage.com with username alkfjlkejrq324 password alkjelr3u24er is retarded. and you can't got back and forth looking at the msg with that retarded username and password. I do get a lot of dropped calls. First week I had the phone I had more dropped calls than I ever did with Tmobile thanks includes when I had voicestream.

Yes they say some of this is coming soon. but come on your suppose to be a leading computer company and you don't release a phone with copy and paste or flash or video camera.

And don't tell me it wasn't avaiable cause it was you just had to hack the phone in order to use the stuff.

Apple is behind once again.
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fiberguy
My views are my own.
Premium
join:2005-05-20
kudos:3

Re: pricing

Behind, yes... cut and paste and picture messaging was a no brainer.. but comes out in June with software 3.

dvd536
as Mr. Pink as they come
Premium
join:2001-04-27
Phoenix, AZ
kudos:4

Remember. . .

no matter what you pay for it, it is STILL T's network that was once cingular which was and still is crap.
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L00ker

join:2007-01-18

1 edit

AT&T has always done well by me

I picked up my iphone a while back (or it seems that way) when they first came out and it's been just as good as any other phone I have ever owned (I personally prefer it to crackberry's) and the reason I left my previous provider (Verizon) was due primarily to customer service. In my area vzw definitely has the best reception, but their service reps (in my experience) are some of the absolute worst. I was just as content to take my vote (money) and use it elsewhere.

I have called AT&T a fair amount of times (I dunno maybe 5-10 over the course of a year and a half/two years) and every time the people I dealt with provided a higher level of service than I had been accustomed to in general. I work in support so when it comes to "good" support I am pretty picky but AT&T has treated me pretty well so far, maybe I should call in and see if that still stands lol

Reception on the other hand while faint in some areas (and somewhat expected) is lacking but in most of the places I travel (in or around boston MA and southern NH) is fine, I don't have 3G (I have the original phone) but I have a few friends that do and they seem to think their 3G speeds are acceptable, not blazing mind you but not sluggish either.

C0deZer0
Oc'D To Rhythm And Police
Premium
join:2001-10-03
Davenport, FL

$100/month for cell service

It still amounts to $100/month bills for wireless service, though... on just one phone.

And AT&T won't really "sell" a family plan where only ONE person in the group would have the iPhone.

In my situation, I got myself and my roomie on one of those plans with two regular phones. He wouldn't want an iPhone, whereas I would. However, the only "family" plans that AT&T will sell involve getting two iPhones, and paying an even more inflated fee that would double what I'm paying for regular wireless service now.
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Jim98122x

@physio-control.com

thumbs down from:
C0deZer0 See Profile

Re: $100/month for cell service

said by C0deZer0:

It still amounts to $100/month bills for wireless service, though... on just one phone.

And AT&T won't really "sell" a family plan where only ONE person in the group would have the iPhone.

In my situation, I got myself and my roomie on one of those plans with two regular phones. He wouldn't want an iPhone, whereas I would. However, the only "family" plans that AT&T will sell involve getting two iPhones, and paying an even more inflated fee that would double what I'm paying for regular wireless service now.
That's total crap.
I personally know of two friends, a couple, who have a family plan with shared minutes. One just got an iPhone and added the required unlimited data, and the other stayed on the same voice plan with the shared minutes. I know this for a fact because I was there when he got his iPhone. He also got his 17% corporate discount on the entire plan. They have a 600 minute plan or something similar. It's way less than $100 for two phones, shared minutes, and one of them being an iPhone.

edster

@leedsworld.com

2 edits

Re: $100/month for cell service

Jim98122x,

I have a 20% cooperate discount on my plan and its well over 100 dollars

I have a family share 550 minute plan with 2 phones

1.) iPhone 3G
2.) Samsung Eternity

The 550 plan costs 59.99 I get 20% of that which drops it down to
47.99

The iPhone data plan costs $30 period no discounts on that

So that plan alone with just my iPhone having data features with NO TEXTING on either phone, with a 20% discount comes to $77.99 before any taxes, with the taxes (they will change based on location) the total comes to $101.56 (Allegheny County, PA)

Orig Qoute
"It's way less than $100 for two phones, shared minutes, and one of them being an iPhone."

FALSE

Now my true cost and I think this is what the bulk of the people have

550 Shared Minutes $47.99
iPhone Data Plan $30.00
Samsung Data Plan $15.00
Texting for Familys $30.00

Grand Total before Taxes $122.99

My May 2009 bill was $147.95

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