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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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There seems to be some confusion surrounding the leaked AT&T policy documents that Gizmodo obtained earlier today. Because AT&T may...
 

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Jobu

Here is one to add. If you are an Edge copy of iPhone user and you upgraded to the new software, your iPhone just become a dog as it will be noticeably slower. Thank you Apple. And no, there is no way to get an older copy for my phone so I am stuck with current version.

July 21 2008 at 7:44 PM Report abuse rate up rate down Reply
Megasis

I have an iPhone since December, I move to AT&T and get also a LG shine for my wife (I ask her if she wanted an iPhone but she didn't at that time), we get 2 yerars contract, family pack with Unity and all, we're saving money comapared to Sprint, our former provider, even thou we have 2 data package each ($20+$20). Now this is my question, I want to get me a new 3G 16Gb so I'll pay $299, now, can my wife use the old iPhone? I mean, can we just switch the SIM card from the LG to the old iPhone? I know I'll pay $30 instead of $20, but she already has 3G with the LG Shine. Then we just put the LG Shine on ebay.

July 10 2008 at 3:39 PM Report abuse rate up rate down Reply
mi_sat

"What I'm gathering from this whole situation is that AT&T is saying too bad to anyone that has less than par credit. Which is really unfortunate since during the keynote I was setting aside the cash for me and my wife's brand new iPhones..."

Maybe this is why you have bad credit.

June 10 2008 at 9:23 PM Report abuse rate up rate down Reply
1 reply to mi_sat's comment
creativlogic

No. You obviously don't understand credit. What gives a person bad credit is when they buy things that they don't have money for. (which I did a lot when I was younger) Not when someone sets aside money to buy something they want.

June 11 2008 at 7:41 AM Report abuse rate up rate down Reply
Steven Johnson

Here's one for the group..So last year when 2nd gen came out at a lower price, all the early adopters got a $100.00 credit..right. So what's att/apple doing this time? I waited for the rev 2 last summer, and as much as I'd like to go 3G I probably will not.

June 10 2008 at 8:22 PM Report abuse rate up rate down Reply
1 reply to Steven Johnson's comment
Drew

That was unprecedented for Apple to accommodate early adopters as they did last summer; I wouldn't expect to see that anytime soon again.

June 12 2008 at 10:30 AM Report abuse rate up rate down Reply
EL

That's lame........who da Hell would want iPhone 2.0 for three years if they already have v1.0........sigh

June 10 2008 at 7:28 PM Report abuse rate up rate down Reply
Jake

Even ATT realizes that the money here is not going to be made on making people wait, even if that model might eek a few extra dollars for them out of nearly new phones. They want to get an IPhone into everyone's hands as quickly as possible, because right now, the number of people who do anything beyond texting on a phone is pretty small. They want the revenue from streaming media, software sales, widgets, gizmos, doohickeys and other features, and they want to maximize the number of people with a device capable of producing that revenue - the IPhone in other words. It's lovely, shiny and people will sell their children for it. They aren't going to get there by selling Samsungs and sticking people with their 6 month old Sony Ericssons. So I wouldn't worry too much. If you have the clams, ATT will be happy to shuck 'em for you, pronto. They just have to figure it all out, corporate-like.

June 10 2008 at 7:09 PM Report abuse rate up rate down Reply
1 reply to Jake's comment
kevinm

Correct... at&t will want to move as many iPhones as they can like Apple wants to. I just don't see this working out well. If this the case, I'd wait if you can and those restriction will go away.

June 10 2008 at 7:29 PM Report abuse rate up rate down Reply
stickybit

What is all the confusion about? take a deep breath and READ the memo that was leaked, assuming it is a real memo it is all rather clear and in black and white. It's still a month away, relax, it will all work out. I have also heard from a very reliable source at my local AT&T store that EVERYONE will be getting the "good" pricing. Let's see what happens...

June 10 2008 at 6:57 PM Report abuse rate up rate down Reply
creativlogic

Ok... this is starting to get annoying I am of course trying to get the official information regarding the GoPhone. Yes I know that in big bold letters it says here that it is not eligible. But I've called AT&T twice and my local Apple Store once and have gotten a "yes" from all three. Of course this is good news to me and I'm sure many of you out there.

It's just really annoying that there is no official section of AT&T's site that says wether or not it will work. I know there have been claims of official emails and memos internally from AT&T but we also get rumors like that for things that have never happened before.

All of this makes me wish I lived Where O2 as the provider. at least they are giving us a clear cut outline of what the iPhone can and can't do on their network.

Lastly... Does anyone else remember about a year ago when it was said that you had to have a contract for the iPhone. Now there are thousands, if not more, of us happily using our iPhones on AT&T's GoPhone option...

June 10 2008 at 6:35 PM Report abuse rate up rate down Reply
2 replies to creativlogic's comment
creativlogic

I'm reading through this "Official" AT&T Memo and finding some issues in believing that it is real. Here are the problems.

First... The memo states...

"The current iTunes activation process will no longer be required for iPhone 3Gs ..."

Fair enough... but...

"... in the event that a customer's device is not tethered in the Apple store, their device will be inoperable until they get home and tether through iTunes."

If all activations will happen at point-of-sale in the store how exactly will an iPhone get out without being tethered.

Plus..

If the current iTunes Activation method doesn't work... Why, if an iPhone "happens" to get out of AT&T's net of two year commitments, will the iTunes method work...

The next part that bugs me is actually comes prior to the other two but here it is...

"All customers will be required to sign a 2-year agreement. There will not be a "no commitment" price for the iPhone 3G."

but this memo also says...

"Prepaid and Pick Your Plan will not be allowed on the 3G device."

I'm under the understanding that a "prepay" or "pick-your-plan" would be under the net of "No Commitment"... Right? AND... if they were planning on activating all iPhones at point-of-sale with a two year commitment, what's with the "No Commitment" price anyways?

Thanks for reading my rant. There has to be others that find this memo to be a little strange.

Here's a link read for yourself and let me know what you think:

http://gizmodo.com/5014909/att-memo-to-retail-managers-shows-iphone-3g-policy

June 10 2008 at 7:04 PM Report abuse rate up rate down Reply
kevinm

Spot on about the authenticity of the memo. Is this really "official" or just to start up controversy? For all we know, Apple and at&t has yet to settle this matter, explains the month long wait to purchase. The memo speaks of an alternative price but what would that be if $199 and $299 are the only prices?

June 10 2008 at 7:23 PM Report abuse rate up rate down Reply
tom

awes!

June 10 2008 at 6:06 PM Report abuse rate up rate down Reply
Ben

What's the procedure for upgrading from a 2G to 3G iPhone but giving/selling the old one to a family member who is currently on an AT&T plan. Does she call AT&T and say "I just bought a used 2G iPhone, set me up?"???

June 10 2008 at 5:12 PM Report abuse rate up rate down Reply
1 reply to Ben's comment
Christina Warren

I believe you just sign up through iTunes, as you do now -- I'm not sure on the procedure for reprovisioning (transferring service), but it should be the same as it is now (iTunes or over the phone verification/activation)

June 10 2008 at 5:14 PM Report abuse rate up rate down Reply
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