Filed under: Retail, Wireless, iPhone
iPhone upgrade breakdown
There seems to be some confusion surrounding the leaked AT&T policy documents that Gizmodo obtained earlier today. Because AT&T may be selling unsubsidized phones (though please note that it appears that even unsubsidized phones will have to be activated with an AT&T voice and data plan in-store), existing AT&T customers are understandably confused about their upgrade options.Assuming that the memo is real and that AT&T's policy won't change between now and July 11, this is the situation:
If you are a current AT&T customer and you have a 2G iPhone
Take a deep breath, you can get the new iPhone 3G for the new lower price (starting at $199.99), as long as you sign a new two-year contract and add-on one of the new required data plans.
To quote from the AT&T memo:
When the 3G device launches, all active postpaid customers in good standing with a 2G iPhone will be eligible to receive the qualified upgrade pricing for a 3G device regardless of service tenure. (Customers that would not otherwise be eligible due to tenure will be made eligible at launch).
So if you bought an iPhone in June of last year -- you can upgrade to the new 3G phone. If you bought an iPhone in May (maybe you were the last person in your city to buy one), you can still upgrade at the lower price.
If you are a current AT&T customer and you do NOT have a 2G iPhone
You may or may not be eligible to buy the iPhone 3G at its lower price upon release. It depends on the length of your contract, the time of your last handset upgrade and anything else that weighs into AT&T's standard upgrade policy. The pricing for non-qualified upgrades has not been determined, but phones will still need to be activated in-store and with a data-plan and two-year contract.
If you are a new AT&T customer
Assuming you pass the credit check (Pre-Paid and Pick-Your-Plan are not eligible for the iPhone 3G), you can get the iPhone 3G for the new lower price. You will be required to sign up for a two-year contract and a voice and data plan.
Cancellation policy spelled-out
From the AT&T memo:
To cancel service within the first 30 days, the customer must return their equipment to the place of purchase (no exceptions). If the customer cancels service after 30 days, they will be charged the ETF. The customer is not required to return the device to cancel after 30 days.
So you have 30-days to return your iPhone 3G and your service will be cancelled as soon as you return the device. After 30 days, you can keep your phone but canceling service will mean you are responsible for the the ETF (early termination fee), which is usually several hundred dollars.
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Reader Comments (Page 1 of 5)
Derek Daniels said 1:07PM on 6-10-2008
"When the 3G device launches, all active postpaid customers in good standing with a 2G iPhone will be eligible to receive the qualified upgrade pricing..."
So what is this 'qualified' pricing?
Reply
Christina Warren said 1:22PM on 6-10-2008
$199 for the 8GB, $299 for the 16
Kimo said 1:08PM on 6-10-2008
But, if you cancel after 30 days, will they unlock the phone?
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Christina Warren said 1:17PM on 6-10-2008
No, they won't unlock the phone. There was something in the wording of the 2G iPhone contracts that made it look like they could or would unlock the phones after the end of the 2-year contract, but canceling a contract won't mean they will unlock the phone.
artward22 said 1:10PM on 6-10-2008
Take this with a grain of salt, but I went to my local ATT&T store and they said that I'll be able to upgrade to an iphone 3G even though I'm a new customer with no current iphone. I asked, "will it be at a higher price?" and he said "no, it will be $199 for everyone." I said "you sure about that?" and he said "absolutely."
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Unknown said 1:17PM on 6-10-2008
Yeah, I wouldn't take what a CSR says one day after announcement as truth. I mean, I hope it is as I fall into that group (new customer in March with non-iphone). Sucks that I was banking on iPhone 3g being same buying method as original as it didn't matter if you were a new/old/recent customer.
Adam said 1:26PM on 6-10-2008
That's where I'm confused... if I have to 're-up' my contract for 2 years and I'm adding data, I should get the 'qualified' price... even if I don't have the 2G iPhone...
Adam said 1:28PM on 6-10-2008
and a side note... I spoke with a corporate mobility manager 2 weeks ago, and his 'inside info' said the launch would 'absolutely' be june 28 for the new phone... so i really don't think anyone at at&t knows whats going on...
Matt said 1:16PM on 6-10-2008
How can they make you sign up for a $30/month 3G data plan if you don't have 3G coverage where you live. Does this effectively limit the Iphone to users who live in AT&T's 3G coverage area?
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Christina Warren said 1:18PM on 6-10-2008
I assume that it is also good for 2G data. So you would get EDGE support for your area and 3G in any area that does support it.
Randy said 2:44PM on 6-10-2008
If you don't live in a 3G coverage area the phone will fall back to EDGE. The price is what it is. If you want the $20 data plan get the original iPhone.
JoshK said 1:17PM on 6-10-2008
What's the deal for corporate iPhone users? My company has 3 so far and are looking to add one or two more once 2.0 lands. Are corporate users able to upgrade for $200 and keep the current business plans?
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JoshK said 1:17PM on 6-10-2008
What's the deal for corporate iPhone users? My company has 3 so far and are looking to add one or two more once 2.0 lands. Are corporate users able to upgrade for $200 and keep the current business plans?
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Christina Warren said 1:20PM on 6-10-2008
I assume that all that will be worked out with corporate sales. The memo was for retail customers but I'm sure that the corporate sales reps will be willing to work something out for handheld upgrades.
JoshK said 1:18PM on 6-10-2008
sorry for the double post
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erick said 1:18PM on 6-10-2008
I'm an ATT customer and I have an Iphone, I cant go to Apple store buy the new Iphone and just pass my info to the new Iphone???????
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aawil said 1:21PM on 6-10-2008
So I'm still a little confused. Since I bought mine on day 1 last year does that mean I can upgrade without extending my contract at all or does it mean my contract will be 2 years as of 3G purchase, basically adding a year to my current contract?
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Christina Warren said 1:22PM on 6-10-2008
You will have to extend your contract -- basically you'll add on another year to the contract, in exchange for getting the phone at the lower price.
bkmintie said 1:31PM on 6-10-2008
what if we began our contract at ATT as an iPhone costumer and then switched to another device (BB Curve)?
Should I just reactivate my iPhone and change my plan in store and hope that I will be able to pick up 2.0 for $199?
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Mike said 1:39PM on 6-10-2008
My question exactly.