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Rumor: AT&T to reduce cost of entry iPhone plan

The Street is reporting on a rumor today that AT&T is planning to drop the cost of the entry-level iPhone plan in the US from $69US per month to $59 per month. The suspected drop will take place when new iPhone models are released, as early as "...next month."

What's AT&T's motivation here? To attract price-conscious customers, woo Apple away from a rumored Verizon deal or simply clear inventory for the next-generation iPhone? As a person who's on this plan, I honestly don't care why -- I just hope it happens.

The change would trim $120/year off of the current plan, reducing the overall cost of the 2-year plan to $1,760. [The original $240/year mention was due to an editing error. -Ed.]

[Via The Apple Blog]

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The Street is reporting on a rumor today that AT&T is planning to drop the cost of the entry-level iPhone plan in the US from $69US per...
 

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aeononan

at&t is just in it for profit, the same way comcast is. both monopolies and not offering lower tiers to cover a wider range of customers. locked into services because the product is only available in those markets with no competition. feeding you their minimums when it may not meet your needs.

June 23 2009 at 2:11 PM Report abuse rate up rate down Reply
helio6

Am I missing something here? The feature which draws me to the iphone is the wifi. I already pay for wifi in my home, and it is available free in coffee shops and libraries. So why would they force me to pay for a data plan? I would not need the data plan, since the phone is already capable of free internet access via wifi. By allowing AT&T to force customers to buy something they may never want or use, Apple has allowed them to undermine a chief design asset. It would be like selling a car with high mileage, but forcing the buyer to pay for extra gas they would not use.

Again, unless I got this wrong... maybe the data fee is for the wifi?

June 02 2009 at 9:27 AM Report abuse rate up rate down Reply
Yuusharo

How much do you want to bet that this rate will not be retroactive to iPhone 3G customers? I detest cell phone companies... They do everything they can to lock you into a contract, then treat you like trash once you're in.

I can promise there will be a revolt if that happens.

May 08 2009 at 12:17 PM Report abuse rate up rate down Reply
Justin

I've also heard that this is only in regards to the original iPhone, not the 3G or upcoming model. Unless they're trying to move some old iPhone 2G stock out I can't see who would take this "deal" if that's the case.

May 07 2009 at 3:13 PM Report abuse rate up rate down Reply
1 reply to Justin's comment
tdowling

But the original iPhone is *still* only $59/mo for the base plan...

May 07 2009 at 7:48 PM Report abuse rate up rate down Reply
Thomas

And how much will they raise the 'taxes' and 'fees' and wipe out any savings.

May 07 2009 at 2:42 PM Report abuse rate up rate down Reply
2 replies to Thomas's comment
Iscariote

You're aware that AT&T doesn't set, have a say in, or keep any of the taxes you're charged right?

May 07 2009 at 3:06 PM Report abuse rate up rate down Reply
Aaron Hoffman

False.

The FUSC (Federal Universal Service Charge) is a tax imposed by the government on phone service providers, but optionally passed onto the end-user by decree of the provider. Of course, the provider will always opt to charge it, because they want to make up every penny of what the government charges them, but it is very much so decided upon by the provider, not the government, as the 'Taxes and Other Fees' section of your bill would lead you to believe.

May 08 2009 at 6:53 AM Report abuse rate up rate down Reply
PSM

I just wish they would offer a plan with less than 450 minutes. I use less than 100 minutes a month (and this is my only phone!), and with rollover minutes I already have like 2,000 minutes I'll never use. It seems like the carriers are stuck in this mindset that people primarily communicate through phone calls. It would be nice to see more flexible options putting more emphasis on the data and text plans so people can choose what fits their needs best. But then we wouldn't be forced to pay them for things we don't need, and they wouldn't like that.

May 07 2009 at 2:36 PM Report abuse rate up rate down Reply
3 replies to PSM's comment
Galley

I'm already paying $60 for the cheapest plan with data. Does this mean I won't have to pay an additional $10 to get 3G service when I get the new iPhone?

May 07 2009 at 2:02 PM Report abuse rate up rate down Reply
1 reply to Galley's comment
tdowling

If it's true that they're lowering the price, I'd guess that it's because of us original iPhone users. We're hitting the two-year mark for the first iPhone contracts, and there's probably a good chance that a lot of folks would hesitate to buy the new model and stick around for another 2 years if it means having to pay $10 more per month for the required 3G service.

Thank goodness there's still competition in this market.

May 07 2009 at 7:46 PM Report abuse rate up rate down Reply
George

Sounds to me like they are just reducing 3G data plans to $20. Otherwise the iPhone voice plans are just standard AT&T rates.

I assume this doesn't apply to existing users…

May 07 2009 at 2:02 PM Report abuse rate up rate down Reply
Darwin Smith

They need to drop the cost of text messaging too! Either way this is a huge win for all iPhone users, maybe even enough to keep me from switching.

May 07 2009 at 2:01 PM Report abuse rate up rate down Reply
SquiggiE

Wait a minute...I must be missing something...

AT&T iPhone plans as of right now:
$39.99(voice)/450 min + $20.00(data) = $59.99
$59.99(voice)/900 min + $20.00(data) = $79.99
$99.99(voice)/unl. min + $20.00(data) = $119.99

How does this differ from the already existing entry level plan of $59.99???

May 07 2009 at 2:00 PM Report abuse rate up rate down Reply
3 replies to SquiggiE's comment
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