AT&T posts iPhone 3G information

Kathy Dowling
Sr. VP for Customer Service AT&T wireless

Dear Ms. Dowling,

I am writing to complain about the pricing of the iPhone 3G in the hope that a change can be made before Friday's launch.

I was until last night a very satisfied AT&T customer for 10 months, and recently raised our family rate plan from 700min to 1400min. In fact, I had taken the phone survey after call a call center, and even spoke with the supervisor of a young man who helped me once, so that he would get some kind of recognition. I know the value of good customer service and make it a point to reward it with my remarks to superiors, word-of-mouth advertising with friends and family, and my continued patronage.

Last night, however, I was dismayed to find out the pricing structure of the iPhone for existing customers while visiting a website online. I confirmed the details of the information with a young man at one of your call centers this morning. The terms, I was told, are that existing AT&T customers must sign a two-year contract that will replace their old commitments and "restart their clock" so to speak. This would seem fair since AT&T is subsidizing the cost of the phone. However, I was shocked to find that existing customers are not able to buy the phone at the previously publicized prices of $199 8G, $299 16G. Instead they must shell out an extra $200 for the phone, UNLESS they have reached an upgrade date (determined by AT&T) at which time they "may" be eligible for a discounted price.

I find this strategy patently outrageous because it is grossly unfair on its face, is unnecessary given the uniqueness of the iPhone, and it undermines the very intent of phone subsidies.

First, it is grossly unfair on its face. Instead of rewarding current customers for their loyal commitment to contracts and paying their bill so that it is good standing. AT&T has chosen to instead punish them in a "time out" fashion until their phone upgrade date arrives, at which time the AT&T policy says that a customer "may" be eligible for an upgrade discount. It does not specify an amount. Neither did the customer service representative. This might be okay with normal phone strategies except for the fact that an existing customer is required to sign the same "start-fresh" contract a new customer has to sign. Both customers are making identical commitments to remaining with AT&T. Both customers will pay the same rate plan fees. Both customers are fulfilling the same requirements, and yet a loyal existing customer prior to his or her upgrade date must put down $200 more. Paying more for adopting technology early, as Steve Jobs said, is expected. Paying more for the exact same product and services when the only fault of the individual is loyalty to the supplier is ludicrous.

Second, it is unnecessary given the unique nature of the iPhone. While there have been some hacks of the iPhone to try to use them on other carriers, the majority of the users far and away are actual AT&T customers. Given this fact, charging your loyal customers more to adopt the technology is unnecessary. It would be one thing if existing customers were going to buy them cheaply and then run over to T-Mobile with them, but the numbers don't reflect this. It is illogical for an existing loyal customer to leave AT&T where all of his or her features will work, go through the hassle of changing phone numbers (Porting is not as easy as described.), and then end up on an inferior carrier with a good chance the iPhone will wind up unusable when the next software update rolls around. There is simply no good reason to impinge upon customers who already had the good sense to patronize your company by making them pay more for an identical product.

Third, this pricing structure totally undermines the intent of phone subsidies. The intent of subsidies is to attract new customers, and perhaps keep existing ones. While the price will lure new customers, doesn't the bad word of mouth that this will generate undermine the attraction of what it is to be an AT&T customer. In essence, it says that AT&T works hard to get new customers and only marginally at keeping existing ones. Additionally, in the case of the iPhone, if an existing customer were to buy one, it is the strongest expression of loyalty that a customer can make. Unlike a Blackberry that can use the SIM card from AT&T or can be taken to a rival and used with their SIM card, the fully functional iPhone is an AT&T only device. Anything less than AT&T renders it less than functional and risks it being "bricked." So, more than any other phone you carry, the iPhone both proclaims and commits to customer loyalty. Moreover, making a $200 price difference for the same commitment on the customer's part will certainl

o2's 3G iphone is on sale now....

http://shop.o2.co.uk/promo/iphoneindex

Mexico prices are also up unofficially. Someone was able to see hidden code on the telcel Web site and he has posted the unofficial prices on his website. It is in Spanish but you should be able to tell what the prices are. I hope these prices are correct because if so, it looks like the US pricing plan (to everyone's surprise). Usually Telcel charges two to three times what the US carriers charge for equipment and their monthly fees are like they were in the US in the early to mid 90's.

http://www.carlosleopoldo.com/post/tarifas-y-planes-para-el-iphone-en-telcel/

seriously? i want a 3G iPhone and everything. it all lookd great. i heard that u get dropped calls when switching from EDGE to 3G and vice versa, but other than that i couldn't wait. now that i see AT&T will do ANYTHING to get a fairly early profit off of this, i'm repulsed like no other. my parents r gonna b the ones paying for this plan IF i get one and there's no way i can put them thru that torture. its just stupid. i mean a no-voice, unlimited-text/data/shenanigans plan at a fairly cheap price would win the hearts of millions, from wat im concerned. Mr Jobs, if u read this, plz kno that ur makin a HUGE mistake by letting AT&T ruin the amazing splendor that is the 3G iPhone.

Does this mean that current AT&T customers who would like to purchase an Iphone, must buy it at its regular price of $399 or $499 and not at the new prices of $199 and $299?

I'm upset over how I've been an AT&T customer for a year and 4 months and I'm NOT eligible for the $199/$299 price. I switched to them because of the iphone but ended up not able to afford it at the initial launch. Then once able I just decided to hold out until they released a 3G version. After months of waiting I was excited for the 11th, ready to be there in line, until yesterday...and yeah the pricing plan changes look like just their way to make up for the price discounts.

That does it for me. I was going to switch from Verizon to the 3G iphone, but now I think I'll stick with VZ.

The $5 for 200 text messages is the final straw. That's just rapacious. One webpage download is more data than those 200 text messages - they're just gouging what they believe are dumb sheep. That may work in the short run, but not in the long one - especially given the underlying quality of the AT&T network (not great).

-tsg-

That "AT&T Has You Covered" line is a hell of a thing to say, when my area of a half a million people has no 3G coverage. AT&T better get off their butts, Verizon and Sprint has High Speed data here, not to mention high speed data along the highways from here to the two nearest "Larger" cities. I will believe they have me covered when they are not number 3 in High Speed Data coverage.

Someone should do a cost comparison between the iphone vs. other 3g at&t phones.

Hi, So which is better? Go-plan or the actual monthly contract with AT&T. I just want to know which is cheaper with online access. If i get an iphone, how will i be able to go online without a contract on the go-plan? And what the cost and cost benifits will be?

-- J