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The dying goodwill toward AT&T

Congratulations! When Apple releases iPhone OS 3.0 next week, we'll finally be gaining the following features ...

Multimedia Messaging Service (MMS)! ... unless you're on AT&T.

Tethering! ... unless you're on AT&T

A brand new 16GB iPhone 3G S for only $199 with a two-year contract! ... unless you're on AT&T and already own an iPhone 3G.

AT&T has long been the subject of grumbling from the community of US iPhone users who want to use their phones legitimately. Ever since the original release back in 2007, it feels like AT&T has been trying to play catch-up when it comes to service and tower availability. But, the release of the iPhone 3G S might be the straw that breaks the camel's back. I can walk down to my local AT&T store and pick up a cheap handset for less than $100 that will have MMS. AT&T knew this day was coming. The company may wail and gnash its teeth, complaining that it aren't ready for this, but it should be, especially since Boy Genius Report tells us that all AT&T needs to do is manually remove the opt-out code!

It was even apparent during the keynote yesterday that Apple sounds pretty disgusted with how far behind AT&T is dragging them. Notice the absence of any AT&T personnel on stage. Had AT&T been on the ball to begin with, it most likely would have taken center stage -- boasting about all the improvements that would garner shiny new services for iPhone users and more money for the corporate coffers. But it didn't, and the tension coming from Apple during the moments when MMS and Tethering were announced was pretty tangible. Apple had all of these features that people have been begging for ready to go, and now Cupertino is forced to wait for AT&T to finish twiddling its thumbs and do what it should have done two years ago. I wouldn't even be surprised if AT&T somehow found a way to block copy/paste!

A small footnote on Apple's iPhone page indicates that MMS support from AT&T will be coming later this summer. Another note on the 3.0 software pages says that tethering isn't available in the U.S. and some other countries, although Engadget cites AT&T sources who say it's coming -- there just isn't anything to announce yet.

Then there comes iPhone pricing. Those expecting a repeat of last summer's offer to replace their current iPhones with the latest model on the cheap are being sorely disappointed. You can read full details on that kerfuffle thanks to one of the recent additions to our team, Michael Jones. However, our commenters do have a point with that one -- those who bought the first generation iPhone paid the full price right off the bat, but later buyers were able to get the iPhone 3G at a subsidized price. Like with any other subsidized phone with any other carrier, you'll have to pay a pretty hefty price for the privilege to upgrade before you're eligible. For me, that'll be in October 2010. By then, the iPhone 3G s4π will most likely be out. Still, people aren't happy with this one either.

The ramifications for AT&T will come when it sits down at the negotiation table with Apple to extend its current gig as exclusive carrier for the iPhone in the United States. Apple won't forget that AT&T didn't have key features in place when they needed to be there. If Verizon, T-Mobile, Sprint, or any other carrier can convince Apple that they would be ahead of the game while AT&T lags (and, believe me, it wouldn't be that hard of an argument to make), Apple will take its toys and go elsewhere. And loyal iPhone users would follow. I know I would.

Congratulations! When Apple releases iPhone OS 3.0 next week, we'll finally be gaining the following features ...Multimedia Messaging...
 

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Jason

And don't forget to talk about the absolute atrocity that AT&T pulled during SXSW. Biggest geek conference of the year and nobody could use their phones. Nobody could use their data plans. Nobody could send SMS.

People HATE AT&T, and are just *waiting* for an opportunity to leave. I'll follow the iPhone, just give me a reason to leave.

June 10 2009 at 9:03 PM Report abuse rate up rate down Reply
zebra

Respect!

June 10 2009 at 8:47 PM Report abuse rate up rate down Reply
zebra

respect!

June 10 2009 at 8:40 PM Report abuse rate up rate down Reply
Ray

AT&T Said I Will have to fork over 5 Beans + Tax for 32GB iPhone 3G S
I just switched over to the 3G when it came out last year...

I'm 5 Months away from being able to upgrade - B*LLS!!!

June 10 2009 at 6:32 PM Report abuse rate up rate down Reply
grace

Having left Verizon for Cingular about three years ago, I'm pretty sure the grass is not greener on the other side. Their customer service was horrible. I've been pretty happy with AT&T customer service. Although, when I signed up, I received a discount through my employer for my personal cell phone account; I usually talk to a business customer rep instead of consumer rep, so maybe they're nicer. Discount rules, and makes my iPhone family plan affordable and cheaper than a comparable plan on any other carrier. I had to temporarily remove the discount to buy the iPhone 3G at Apple last year, and it magically reappeared shortly thereafter, no hassle at all. I love my iPhone, though I have had a crazy number of failed calls. But that's gotten better, and the phone is the least used feature on my iPhone.

But this is not a love-fest. I am annoyed by the text message plans. Yes, what about the folks that use more than 200 but nowhere near 1500? Sure, take another $10 a month, I didn't need it! The need to offer a 500 message plan for what they charge for 200 (or just include messages), and they better not up the charges for MMS, if anything, they should up the number of messages we get for what we pay, or include them in the data plan, to bring messaging pricing more in line with the rest of the world.

I can wait a little while for MMS, at least it's coming, whatever. But tethering had better come soon, too, and without a crazy extra charge. No more than $10 extra per month for tethering, if that. I would be an occasional user, and wouldn't want to pay a significant chunk of change but would still want the option when needed. They need to include it free, or at several different levels for different users.

Finally, some bitching at Apple: why can't they include video capability in the software update for the iPhone 3G? Seriously? If an unlocked phone can do it, there is NO good reason why Apple can't do it, except to try to make people buy the newer version which is ridiculous. I don't care if quality, battery life, whatever is not great with video recording on the 3G, the device is capable of doing it hardware-wise, so DO IT APPLE!!!! and bring tethering, AT&T!! or I'm seriously unlocking my phone, terms of use be damned.

June 10 2009 at 4:23 PM Report abuse rate up rate down Reply
OmariJames

I have the 3G and I can upgrade to the 16 for 199 or 32 for 299.

That's miss information you have there.

June 10 2009 at 2:30 PM Report abuse rate up rate down Reply
Steph

I just got off the phone with ATT. If they are being honest, you can go to an ATT store, tell them that you need an 'exception upgrade' and get the phone you want for the new customer rate plus $75. Please note, you have to be on your current plan for at least six months. They even called my local store to be sure it was the case. If I can't get the phone, I'll come back and update this. Fingers crossed!

June 10 2009 at 2:15 PM Report abuse rate up rate down Reply
CJ

I am wondering if I purchase a 3GS for my other phone on my family plan and then switch the sim cards between the new phone and my 3G if it would work?
Any ideas?

June 10 2009 at 1:31 PM Report abuse rate up rate down Reply
deanypop

This article fails with the title - when did we ever have goodwill towards AT&T? Even Apple has been faking it to make it, all you need to do is look at their words and behaviors in other countries. It's clear to all AT&T sucks, but they WERE the perfect candidate to launch the iPhone at the time.

In retrospect, launching on Sprint, then coming out GSM in other countries would've been the perfect 1-2 punch - and had Sprint over a barrel to perform well to maintain their exclusivity. Going the OTHER way, AT&T could probably care less about a CDMA iPhone at this point, since they'll still win EVERY international travel customer, and the money they bring in.

Honestly, I think Apple is stuck with AT&T, at least until the carrier tech is unified/4Gified - the mixed-mode chips still aren't quite there, and the internet hasn't fully transformed/destroyed the carrier landline business (but when it does, then I think the carriers WILL adopt a more IP-centric/telecom 2.0 mindset, and make it "all about the apps" in a way that everyone can stomach.

June 10 2009 at 1:16 PM Report abuse rate up rate down Reply
Angus

This may be tilting at windmills, but I created a facebook group for those of us who want to see a non-AT&T iphone. Please join!
http://www.facebook.com/group.php?gid=86765693485

June 10 2009 at 12:07 PM Report abuse rate up rate down Reply
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