AT&T signals an abrupt end for some prepaid iPhone plans (updated)
Update 4: I am working with an AT&T spokesperson to try to detangle the contradictory information discussed below. No results as yet, but will update when that becomes possible.Update 5: The prepaid crackdown for iPhone applies to only some prepaid plans. PayAsYouGo GoPhone customers will be affected but not PickYourPlan GoPhone customers, who will be safe from service degradation. Brad Mays of AT&T tells TUAW that they are briefing their reps to better convey the distinction to customers.
Similar carrier restrictions are apparently not limited to the United States. TUAW reader Robin forwarded a screenshot from the UK, which directs customers to this O2 information page. Customers are being urged to change from normal prepaid plans to an authorized O2 iPhone tariff.
Update 6: Brad Mays emphasizes that PAYG customers do not have an official iPhone Data Plan and that PickYourPlan data "is necessary to make the 3.0 software work properly with their device". PAYG customers are directed to this page for more information. He added, "[O]ur reps are now fully aligned around this information."
TUAW reader Daniel B. called AT&T today and writes that he was offered a prepaid PYP option with a $30 iPhone data plan. This is the first we've heard of PYP prepaid accounts being offered, believing AT&T would no longer provide this option. I have, once again, contacted Mays to see what's going on.
Original Post
I just spent the last half hour on the phone with AT&T, and I can't quite believe what I heard.
I am an AT&T customer, and have been so since the weekend that the iPhone debuted. I am on an official iPhone GoPhone plan. I have paid monthly for two years and am up to date on said payments. After two years, AT&T now tells me that I will either begin a new contract on my existing equipment, or lose access to a reliable data plan.
My jaw is dragging the floor.
When TUAW reader Daniel Burkholder tipped us off this afternoon, I thought he was somehow misled by the text message that appeared on his iPhone. It reads:
AT&T Free MSG: A new software upgrade for iPhone will be available on 6/17. This upgrade may affect your data service. Please visit att.com/iphone or call 800-901-9878 for a representative. If you download the software and are not on an approved iPhone data plan, your data service will be interrupted.
So I called, despite the fact that I am on an approved data plan. Sure, my account is grandfathered in, and new iPhone 3G purchasers can no longer get GoPhone activation (click the "New to AT&T" link to see the relevant section), but it's never been an issue.
I was told that AT&T was asking customers to move to a contract plan as they no longer plan to support prepaid data. "This is a recommendation," the technical support person told me. "If you decide not to go, it's okay but we're informing customers that service will not be up to par."
I asked if they were deliberately cutting out GoPhone customers from full Internet access (and mind you, I asked this in several ways, at least three or four times), and was told 'Yes.' "This will affect logging onto the Internet and using your data services."
How will they detect this? According to the technical representative, their equipment will be checking the SIM and using the account information when accessing AT&T's data services. "Based on your plan, you will not receive the same quality service on your GoPhone plan, even with the same equipment. This is a technical change on AT&T's end on how we service that data plan." Gotcha -- so nothing at all to do with the 3.0 OS upgrade, but merely a convenient point of transition.
I pushed further, asking whether I could move to a postpaid plan without invoking a two-year contract as I already fully owned my equipment and had been a customer for two years on my current plan. "You will have to enter a new contract as this service change is not compatible with the iPhone prepaid. You cannot enter a postpaid contract without a two year commitment."
The technician pointed out that "the iPhone has drastically cut prices" on recent models. I responded that my 2G iPhone was working fine. He pointed out that this was an official AT&T policy and that they have decided that "all prepaid customers should transfer into a contract plan for the iPhone."
I asked him to point me to an official policy statement but he said at this time only the text messages going out are available as official communications with customers. "This is an official iPhone advisory. We are informing customers by text messages."
So this is how AT&T rewards me for two years of customer loyalty: I either have to start paying up another $20+ per month and commit to two years of additional service (without any further breaks on equipment or contract terms, if I don't choose to buy a 3G S right now), or accept that I'm going to be paying good money each month for a plan with substandard data service. Based on the fact that the data pinching will happen deliberately on AT&T's end, I'd call it a strongarm approach and a rotten way to treat customers.
It's one thing, if you're going to make a change in the terms of service for an admittedly legacy (but still perfectly usable) service plan, to clearly communicate customer options well ahead of the transition date, and to work with loyal users to find accommodations that satisfy. It's quite another thing to lower the boom with two days warning: upgrade or suffer.
Update Official statement here, which does not yet shed any further light on the matter. Developing.
Update 2 Three different AT&T reps checked my *specific* plan using my account information, which is the original iPhone GoPhone plan and said that yes, I would be affected and that no, this didn't just affect people who stuck SIMs into iPhones
Update 3 We have a query into AT&T PR that has not yet been replied to, asking why service reps are giving information that seems out of line with the statement
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Update 4: I am working with an AT&T spokesperson to try to detangle the contradictory information discussed below. No results as yet,...
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Basically, if you are on the PAYG plan, you should downgrade from 3.0 to get the EDGE working.
Still, the situation is rather stupid -- up to now I paid $20 for a 100 Mb data (ATT got rid of unlimed a few months ago) on PAYG and it was sufficient for me and ATT was making money as well.
T-mobile voice pre-paid costs just $.10/minute versus $.25/minute on AT&T -- this is already better.
Now, if I switch to a T-mobile pre-paid plan can I make T-mobile EDGE working on iphone 3.0? Any solid info?
People are missing the big picture. Whether people love or hate Erica and what she does, that isn't really the point.
The real point is iPhone is the ONLY GSM phone that you cannot use on prepaid and is over-monitored by AT&T, which is really, really counter to the freedom of GSM phones. NO OTHER GSM phone is controlled this much. You have always been able to use ANY GSM phone on prepaid AT&T before the iPhone. Other countries' carriers have it right, they DO allow prepaid service on iPhones. They undertsand that if people pay for their phone outright, they shouldn't be subject to contracts.
It's really sad that AT&T is trying to force contracts on people who don't want or need them but are still good paying customers. Have you looked closely at ATT's prepaid plans? They're actually pretty much almost the same or more as contract prices, depending on how often you talk, text, etc. So they ARE NOT losing money on prepaid customers, that statement someone else made is pure BS.
Don't allow a carrier with backwards thinking tell you what you can do with a phone you paid for. Look closely at the hack people posted and use it. Better yet, look at truly unlocked phones and see what kind of freedom you can have. I used MMS the other day on an unlocked Sony Ericsson and the same with a Nokia, and yes it has always worked on those phones. AT&T wants to take all summer to turn on simple MMS for iPhone users, and iPhone customers pay MORE than they would with a Nokia or Sony Ericsson. I could probably even tether with those phones, although I'm not looking for that. Thank for making people pay more for the iPhone but offering less. AT&T, you are very shortsighted with iPhone customers and it will come back to bite you in the behind when the iPhone is off exclusivity.
Sorry to those of you who get this info too late and have already been extorted into a new 2-year contract AFTER paying for their phone in full.
Without hacking your GoPhone iPhone. Just using simple APN settings you can re-enable Data on your GoPhone iPhone. Check-i-check-it-check-it-out!
http://limitededitioniphone.com/iphone-os-3-0-7a341-kills-any-non-iphone-data-plan-yeah-right-ive-got-you-covered/
just switch to t-mobile, they fully support the iphone and know how to treat customers right
June 20 2009 at 2:27 PM Report abuse Permalink rate up rate down ReplyIhave the iPhone 3G with PAYG (Gophone) of AT&T. After upgrading to iPhone 3.0, the internet access is gone, even though I still have 130MB data access balance.
An error message popup, it reads...
"Could not activate cellular data network: You are not subscribed to a cellular data service"
The calling function still works; I can make phone calls. Other 3.0 features on 3G are all good.
Go to www.unlockit.co.nz using wifi on the iPhone to fix the ATT apn settings for 3.0. Then you should be fine.
I'm interested in how this is all going to play out... I was very near replacing my 2G iPhone with a 3GS... but ONLY if I could get it without a contract. As I've said elsewhere I travel internationally a lot. I don't want my phone locked to a particular countries provider, so assuming Pwnage/ultrasn0w will work on the 3GS I was going to do that with a PYP account.. or PG account if I could.
In fact at this point I'm regularly back in the US I wouldn't MIND a contract provided all the minutes rolled over, even for 6 month, and the termination fee was pro-rated... oh and AT&T unlocked the phone at my request the way they and t-mo do with all the non-iPhones they sell.
Seriously the US Mobile Phone market suffers from the same problem the US Healthcare system does. The illusion of consumer choice even though the choices are so restricted by multiple layers of corporate behemoths as to actually not provide the consumers much choice.
Chose your phone hardware and you've effectively chosen your service provider (no choice there), which effectively gives you a couple very restricted choices in plans (limited choice there).
Chose your employer and you've effectively chosen your health insurance plan (no choice there), which effectively gives you a couple very restricted choices in doctors (limited choice there).
...and one more...
Chose your address and you've effectively chosen both your local phone company and your cable company (no choice there) which effectively give you very restrictive choices in phone/cable/data (limited choice threre).
When do American's wake up and realize what a f'd up system these sanctioned monopolies are.
Neither AT&T nor Apple are monopolies because neither prevents competition in its markets.
Despite your longwinded, self-serving comments, your argument is the same as that of the cretins who can't write a literate sentence and haven't a clue that Erica Sadun is a well-known hacker who exploits the iPhone: 'I'm throwing a tantrum because I want my way!' However, as someone affluent enough to live in three countries, your stinginess is all the more reprehensible.
AT&T shows No Commitment pricing for both the 3G & 3GS and then says, "iPhones sold in the United States are configured to work only with the wireless services provided by AT&T"
Wouldn't AT&T have to provide a GoPhone Pick Your Plan or GoPhone Pay As You Go option with a No Commitment phone if it's locked into AT&T?
Cheap bastards. Just sign a contract and stop complaining; cell phone contracts are just a fact of life. There are millions of friggin' iPhone users AROUND THE WHOLE WORLD on a contract that are doing all right financially not to have to whine about being "tied down" to a contract. Come on folks, it's totally 2009.
June 17 2009 at 1:43 AM Report abuse Permalink rate up rate down ReplyWillywill82 - My aversion to phone contracts has NOTHING to do with the cost of the plan. It has EVERYTHING to do with the fact that I live in three countries. It's 2009 and people travel globally, locking me into a contract in one country and not letting me use locally available pre-paid SIMS is absolute BS. I have absolutely NO need for service 6 month out of the year in the US since I'm not there.
Further your assumption that "the rest of the world" uses contracts is bogus. MOST countries have as many if not more prepaid mobile customers as post-paid. The post-paid 2-3 year contract is very much a North American thing, not to say Europe doesn't have it's contract plans as well, but it's not the de facto standard the way it is in the North America.
Hey Willy quit being a hater. Why don't you stop complaining about people complaining? Why is this even any of your business if you're not on GoPhone.
Dude....are you one of those anonymous internet tough guys that go from site to site and belittle people about something that has nothing to do with you?
Just quit being a hater. You've got better things to do, bro.
Thanks Nick, I'm relieved it's only an apn change. I've done that before for no data and before with winmo phones.
June 16 2009 at 9:54 PM Report abuse Permalink rate up rate down ReplyI called ATT today when I was given teh 'not subscribed to a cellular data plan' and they claimed that my iPhone 3G PYP (which is LISTED on my ATT phone page) is no longer available and I MUST migrate to a contract or lose 3G and EDGE data. The site listed above fixed this problem and it now works 100% with no issues. SCREW ATT! I pay $30/month for unlimited 3G DATA and $40/month for 400-minutes with roll-over. How is this a free lunch as I pay the same as you pay but get 100-minutes less for a phone I OWN with no subsidy - all for the purpose of not signing an ATT contract?
I was able to get DATA back and I will GLADLY sign a contract with Sprint for a new PRE as soon as they are in stock. A very much enjoy my iPhone and generally despise any cell company but ATT takes the cake for sucking the most - even over T-Mobile and Sprint! I was always happy with Verizon and had their service for 7-years before I switched to ATT for the 1st. gen. iPhone and then bought a 3G iPhone without a contract at a higher price - and ATT had a plan specifically FOR 3G PYP users as can CLEARLY be seen on my PYP ATT information site. ATT is the most horrible, most craptacular - blood-sucking, money-grubbing company I have ever seen - and compared to DTV I thought that was not possible - but ATT not only surpassed DTV but did so by a HUGE MARGIN!
D
I'll just leave this here.
http://limitededitioniphone.com/iphone-os-3-0-7a341-kills-any-non-iphone-data-plan-yeah-right-ive-got-you-covered/
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