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AT&T Planning More Subsidized Netbook Deals
'The economics for us are terrific,' says exec...
AT&T has decided to go full speed ahead into the business of subsidizing netbooks in much the same way they've been subsidizing phones. Losses on the short term are of course recouped by locking customers into long term contracts, the economics of which one exec tells Investors.com are "terrific." As we discussed yesterday, those numbers are even more terrific if your customer has absolutely no idea what a gigabyte is, or how many they're using. AT&T already offers subsidized netbooks from Acer and Dell, and says they're in negotiations with other netbook manufacturers. Of course pushing netbooks harder is going to increase discussion about AT&T's 5GB cap on their HSDPA service, and whether that's fair for the $60 a month (plus fees, taxes and overages) customers are paying.
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Big Dawg 23
join:2002-03-27
Northfield, MN

Big Dawg 23

Member

With 5GB Cap

I have a Dell and a happy VZW customer. I tried the REV. A card that is on the motherboard of my Studio 17". With 5GB cap you cant do much. I went to just normal sites like ESPN and watch my data go to 100MB in a short time. With a 20GB cap I might be interested.

en102
Canadian, eh?
join:2001-01-26
Valencia, CA

en102

Member

Re: With 5GB Cap

I'd consider it - if I were to cut TV/Phone service completely, and I could get at least a 10GB cap before the exponential price hikes.

Currently, I end up paying $100/month (after taxes) for TV, Phone and Internet (10Mbps/1Mbps), so it isn't attractive. Also, work pays for my unlimited Treo 800w on Sprint, and I have a 28% discount on service for AT&T mobility on my HTC tilt (set data service to PPU / use WiFi with MoDaCo NoDATA)
bgraham2
join:2001-03-15
Smithtown, NY

bgraham2

Member

Is It Worth it? I don't Think So

I was just thinking of getting an Acer netbook for $350. I really like the battery life (6 hours), size and mainly want to upload pictures from my camera to the netbook for safekeeping whilst on vacation.

Unless you have a specific need who wants to subsidize a $350 product to the tune of $60 a month for a stinking 5 gig. I could not find a contract term listed at ATT, but I guess $60 plus tax and charges is easily $70 a month x 12 = $840 a year.

ninjatutle
Premium
join:2006-01-02
San Ramon, CA

ninjatutle

Member

Re: Is It Worth it? I don't Think So

Tax is under $2. But we should not talk about this tax any further. If the govt knew how low the percetage is, they would want more I had a similar tax amount when I was at Sprint.

canesfan2001
join:2003-02-04
Hialeah, FL

canesfan2001 to bgraham2

Member

to bgraham2
It's not so much the 5 gigs a month that irks me, it's the overages, if the overages were on the order of $10 or even $15 per gigabyte at least the pricing would make sense...but at OVER $500/GB (domestic, we don't even want to start with international rates) it's robbery.

Ark4
join:2002-06-08
Lansing, MI

Ark4 to bgraham2

Member

to bgraham2
»www.bestbuy.com/site/ols ··· t0500000

Seems like they are down to $239 at Best Buy now. And that is with a SSD, 1GB RAM, and the WinXP tax. Just pay the full price and don't put up with silly contracts for tiny internet usage.

rich38
@comcast.net

rich38

Anon

AT&T 5Gb cap

A year ago, I got the unlimited data plan from AT&T for almost $70/month. During my internet searches, I saw that Sprint had a 5 Gb/month cap on their data plans so I told people I know about my deal with AT&T, until now. Recently, I was telling my fellow Linux users at my local LUG about my data deal when they told me that AT&T had also put a 5GB/month/$60 cap on their plan. Now, I'm not so sure I will recommend AT&T for their data plan in the future.

mikesterr
join:2008-04-18
Sanford, FL

mikesterr

Member

Here is my real problem

Cap's Aside We know how the Cell-co's work There will be something that forces you to use the connection your paying for only with that device. Of course the Cap will limit the amount of sharing anyone wants to do it should still be your right to take your connection to any device you want to use it. Shouldn't it?

rec9140
Provoice just DO it
join:2003-07-29
Mulberry, FL

rec9140

Member

ATT, 5GB, No Linux

While I am not a huge fan of subsidy(s) as the required contract has just pushed the cost of the netbook up $1,440.

BUT 3 strikes and your out...

1) No Linux for subsidy units, at least on the Dell Mini Inspiron. (A plus Dell is finally offering the red one shown around tradeshows. )
2) ATT
3) 5GB cap
beaups
join:2003-08-11
Hilliard, OH

1 recommendation

beaups

Member

Re: ATT, 5GB, No Linux

Linux on netbooks has been all but a disaster at retail. Returns are ridiculously high compared to windows based netbooks. One of the big issues in subsidy/contract models is handling returns. Doing a subsidy program on linux based netbooks would be financial suicide for all parties involed.

The MS license for XP on netbooks is cheap...so if you want linux on a subsidized netbook that bad just buy an XP model and wipe it and install linux.

rec9140
Provoice just DO it
join:2003-07-29
Mulberry, FL

rec9140

Member

Re: ATT, 5GB, No Linux

said by beaups:
Linux on netbooks has been all but a disaster at retail. Returns are ridiculously high compared to windows based netbooks. One of the big issues in subsidy/contract models is handling returns. Doing a subsidy program on linux based netbooks would be financial suicide for all parties involed.
Dell seems to be selling 1 in 3 or 33% with Linux. And Dell specifically states that the returns on Linux v. WinidiotOS are about equal.

»linux.slashdot.org/artic ··· from=rss

»blog.laptopmag.com/one-t ··· un-linux

"According to Dell, the the return rate of Ubuntu running Mini 9s are comparable to the XP rate, which we are told is very low. Our focus has been making sure that before the order is taken is that the customer knows what he is getting, New added."
said by beaups:
The MS license for XP on netbooks is cheap...so if you want linux on a subsidized netbook that bad just buy an XP model and wipe it and install linux.

NO WAY. I personally and no agency/business I have a say in, will no longer fund in any way shape or form ms, period.

I'll buy the ~ $600 one in Red with Linux on it. I have to wipe it anyway as the Linux distro Dell uses is gnome based and one of its creators is nothing more than an ms lackey, and it looks terrible, lack of options, and alot of other reasons I can't stand gnome. Something with KDE 3.5.10 (pass on 4.x) will get installed.

The subsidy looks nice from a business standpoint of initial cost savings, and since I need the network access any way, but....

1) ATT - Is not an approved carrier for a lot of reasons, coverage and technology being the two biggest

2) Caps - They all have it, but at roughly 400MB/day it won't take long for 5GB to fly by.

3) No Linux

If I have to purchase these, then wipe them, then install Linux then there are costs in doing this. Spending $$$ to do this is not cost effective since I've just blown away the subsidy in my costs to disinfect the machines.

kamm
join:2001-02-14
Brooklyn, NY

1 edit

kamm

Member

Re: ATT, 5GB, No Linux

quote:
“Our focus has been making sure that before the order is taken is that the customer knows what he is getting,”
So in other words Dell is selling it to linux users (who else would choose it?) and they still getting returns?

I'm all for linux everywhere but it's downright lame, this pathetic spinning of this story.

Disclaimer: I use linux literally every day since Hurricane - nowadays exclusively CentOS (I keep trying Kubuntu but it's just not my world...)
beaups
join:2003-08-11
Hilliard, OH

beaups to rec9140

Member

to rec9140
I stated returns at RETAIL. They are WAY WAY higher than windows, and sell through is far lower. Again it would be a disaster handling subisdies on a linux box.
beaups

beaups

Member

Re: ATT, 5GB, No Linux

I am going to expand a bit here.

Dell's reported sales/returns on direct order of a Linux netbook is very different than an advertised/subsidized/retail model. A Linux user SEEKING a LINUX based netbook is fine and understands what they are getting, but for the majority of manufacturers Linux based netbooks were merely a way to cut costs due to the expensive MS license and the fact that netbooks did not run vista well.

Now that MS offers a sub $30 XP license for netbooks, it has all but killed Linux in the retail channel. Taking a linux box and marketing it to the masses (free with contract type deal) would be a train wreck. If you sent an average PC user home with a Linux netbook, they are likely not going to be happy.
MrHappy316
Wish I had my tank
Premium Member
join:2003-01-02
Columbia, SC

MrHappy316

Premium Member

No 5 GB cap here

I got on board the unlimited data plan way before the 5 GB limit ever came out. I have repeatedly checked my account with ATT and so far it says I have a grandfathered unlimited account. I'm sure once I go way over 5GB they'll rein me in but so far everything I have seen on my account shows that I have a different account than the 5GB limit account.

They even say on their new data plans now that theres no "unlimited". It specifically states 5 GB's.

podstolom
@swbell.net

podstolom

Anon

Subsidies

A 2 year subsidy is a good idea if you are going to get the data service anyway. You are locked into the same contract if you buy a data card or a usb modem anyway so getting a netbook on the cheap is a good deal.

$60/mo + overages is the problem. 5 gig is one DVD's worth of data. $60 bucks for 1 DVD. $480 per each add'l dvd per month. Wow. Pretty expensive piece of plastic.

Now $30/mo for say 50 Gig is another story. That's $3/dvd. Much better.

inteller
Sociopaths always win.
join:2003-12-08
Tulsa, OK

inteller

Member

60...haha yeah right.

Why do people pay these prices? It is pretty easy to turn your netbook into a Pantech feature phone....$20 medianet is just too easy. And before you say it is wrong....charging $60 for 3G data is wrong. tit for tat.
notwrth10
join:2007-03-03
1001EB

notwrth10

Member

Re: 60...haha yeah right.

So is $4 for a gallon of gas.

Small world isn't it?

kamm
join:2001-02-14
Brooklyn, NY

kamm

Member

Too bad their 2.5G (aka 3G in ATT lingo) is SLOW as hell...

...and CAPPED at 5 gig while deceptively advertised as 'unlimited'.