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Rumor: AT&T outbid Verizon for the iPad data plan

Fox News writer Clayton Morris was also wondering just why Apple went with AT&T yet again for the iPad data plan, but it turns out things between the two companies weren't quite so cut and dry as Jobs made us believe on stage. He says that inside sources at Verizon still insist that they've been talking with Apple about handling some of the data service, and he even says that they've mentioned not only an iPhone set up to work with Verizon later this year, but an iPad as well.

Rumor also has it that AT&T simply outbid the other cellphone providers for becoming the official iPad data service, and that makes sense: that $29.99 unlimited plan is a heck of a deal for consumers, but then again, it'll bring in a heck of a lot of business for AT&T (who should have already been in hot water for their service outages, and will probably end up in more, despite their promises that their network can handle the data).

Of course, Verizon is really the only source saying they're still in the game at the moment -- most analysts believe Verizon won't see Apple hardware until they bring out their next-generation LTE service, and even then having a bunch of different plans to choose from doesn't really sound like Apple's kind of thing. But it is interesting to hear that AT&T is willing to take a dive in price to keep Apple's business. Wonder what might happen if their network dives as well.

[via Apple Insider]

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Fox News writer Clayton Morris was also wondering just why Apple went with AT&T yet again for the iPad data plan, but it turns out...
 

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MIchael

I hope that if verizon gets the iphone and/or the ipad that it just forces AT&T to finally get a good network. I want this to result in better quality for everyone. Thats what I want. But I also want a verizon iphone since right now I use them and they have much better service then my AT&T friends.

February 04 2010 at 3:25 PM Report abuse rate up rate down Reply
Eric

I'm hoping any Verizon iPhone announcement is made in early June - by July I'm travelling quite a bit, and will be buying a 3G iPad for my mobile data needs. If Verizon gets an iPhone, I'll go that route.

February 04 2010 at 2:33 PM Report abuse rate up rate down Reply
pheh

Unless the iPad is sporting a dual gsm/cdma chip, and perhaps it does – I have no clue, then this bidding couldn't have taken place for terribly long.

February 04 2010 at 2:24 PM Report abuse rate up rate down Reply
Bubbski

To a certain extent, the AT&T plan makes sense for AT&T...

1) The largest group of first adopters of the iPad will be people who already own an iPhone...so the data load on AT&Ts network will increase, but not exponentially. If you so the same things on your iPad you did on the iPhone, but not simultaneously, they will be getting paid 30 extra bucks to provide the same amount of data...

2) I see the iPad being used more on WiFi than on 3G...the ability to connect on 3G is like a security blanket between WiFI locations. People will be paying 15 or 30 bucks a month for the connectivity equivalent of the Snuggie (or WTF) blanket.

February 04 2010 at 1:55 PM Report abuse rate up rate down Reply
Adam

$29.99 is only a heck of a deal for consumers if you're comparing it to something like the MiFi. But, in fact, $30 is exactly how much the iPhone data plan already costs. The only difference is they're allowing you to purchase just the data plan for the iPad, sans voice plan (obviously). I'm not going to pay $30 for data on my iPhone plus another $30 (or even $15) for data on my iPad...that's ridiculous. Chances are, I'd never be using the two simultaneously, so why not let me share the same service between the two devices?

Ideally, wireless data connectivity should work exactly the same way that wired internet access has worked for years -- you pay one amount on one bill for as many devices as you care to connect within that umbrella of service. They could keep a monthly cap on usage (say, 5 GB for your entire account) but within that cap you'd be free to use as many devices as you want without having to pay separately for each and every one.

February 04 2010 at 1:17 PM Report abuse rate up rate down Reply
John.B

Verizon can expect a call back when they roll out their LTE-based 4G service.

February 04 2010 at 1:07 PM Report abuse rate up rate down Reply
akatsuki

So much for the theory that Apple is actually mad at AT&T in any way regarding poor service - since this is pretty much going to guarantee that service slows to a crawl.

My next phone will probably be the next generation Nexus, not because it is a better phone, because it probably won't be - but only because it will actually work as a phone and not drop calls (plus the better GPS chip)

February 04 2010 at 12:53 PM Report abuse rate up rate down Reply
Dale

I'm just disappointed that I don't get the choice. T-Mobile appear to be supporting micro SIMs, but it's impossible to tell with this country's fragmented infrastructure if the iPad will connect to their network. I'm guessing probably not if Apple have their pants around their ankles for AT&T again.

The best benefit is that the ad hoc nature of the 3G means I'll be able to pick up an O2 SIM when I'm back in the UK and use my iPad there without ridiculous roaming charges or paying twice.

February 04 2010 at 12:53 PM Report abuse rate up rate down Reply
5 replies to Dale's comment
loup407

I expect AT&T to NOT be able to support the increased demands on their system, and can imagine driving more iPhone users away from AT&T. I just finished a phone call with a client; we were both at our respective desks, both on iPhones, both showing full bars and our call was dropped 4 times in 45 mins. I'm hopeful there is a Verizon iPhone soon; so as to redistribute traffic.

February 04 2010 at 12:46 PM Report abuse rate up rate down Reply
1 reply to loup407's comment
Tony Crabtree

Agree . . . some mobile networks are beginning to creek under the weight of data traffic being driven from app stores . . . the ipad will certainly up the ante in this respect. AT&T and friends will have no choice but to upgrade their networks or forego future juicy data revenues . . . see Junipers No 1 prediction for 2010 . . . http://www.juniperresearch.com/shop/viewpressrelease.php?pr=170

February 04 2010 at 2:48 PM Report abuse rate up rate down Reply
tarekyassine@hotmail.com

the world doesn't revolve around the US - by going only on Verizon it limits the number of iPads/iPhones Apple can sell. In case you haven't noticed, CDMA is virtually non-existant outside of North America. Apple learned with the iPhone 3G launch that economies of scale can only be realized when you can get the device in as many hands as possible. By going CDMA Apple would have stifled that growth....

February 04 2010 at 12:45 PM Report abuse rate up rate down Reply
1 reply to tarekyassine@hotmail.com's comment
robb

It's pretty much nonexistent outside the US now, as far as the iPad is concerned. Canada was the other CDMA stronghold (50% CDMA, 50% GSM) but Bell and Telus, the CDMA holdouts, rolled out a new network and are selling iPhones. You can still use their CDMA network (mostly for voice) but if you want to use their shiny new data network you're going to need a GSM device.

February 04 2010 at 2:39 PM Report abuse rate up rate down Reply
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