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	<title>last100 &#187; AT&amp;T</title>
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		<title>AT&amp;T releases official pricing plans for iPhone 3G; total cost of ownership is going up</title>
		<link>http://www.last100.com/2008/07/01/at-total-cost-of-ownership-is-going-up/</link>
		<comments>http://www.last100.com/2008/07/01/at-total-cost-of-ownership-is-going-up/#comments</comments>
		<pubDate>Wed, 02 Jul 2008 02:10:56 +0000</pubDate>
		<dc:creator>Daniel Langendorf</dc:creator>
				<category><![CDATA[Comms]]></category>
		<category><![CDATA[Mobile]]></category>
		<category><![CDATA[Apple]]></category>
		<category><![CDATA[AT&T]]></category>

		<guid isPermaLink="false">http://www.last100.com/?p=2064</guid>
		<description><![CDATA[AT&#38;T announced pricing details today for the iPhone 3G, which goes on sale at 8 a.m., July 11. There&#8217;s been a little grousing here and there, but for the most part the No. 1 carrier in the U.S. &#8212; and its accomplice, Apple &#8212; have received a free criticism pass.
Now that official pricing is here, [...]]]></description>
			<content:encoded><![CDATA[<p><a href="http://www.last100.com/wp-content/uploads/2008/07/att-iphone-info.jpg"><img class="alignright size-full wp-image-2065" title="att-iphone-info" src="http://www.last100.com/wp-content/uploads/2008/07/att-iphone-info.jpg" alt="att iphone 3g" width="300" height="153" /></a>AT&amp;T announced pricing details today for the <span class="v1"><a href="http://www.apple.com/iphone/">iPhone 3G</a></span><span class="v1">, which goes on sale at 8 a.m., July 11. There&#8217;s been a little grousing here and there, but for the most part the No. 1 carrier in the U.S. &#8212; and its accomplice, Apple &#8212; have received a free criticism pass.</span></p>
<p><span class="v1">Now that official pricing is here, we should be disappointed in AT&amp;T and Apple. The iPhone 3G is going to be a heck of a lot more expensive to own.</span></p>
<p>In fact, the whole iPhone 3G pricing scheme smacks of <span class="v1">corporate America &#8212; a product hits it big, so the next time out let&#8217;s milk it for every penny possible.</span></p>
<p><span class="v1">That&#8217;s what it feels like.</span></p>
<p><span class="v1">Here&#8217;s a quick review of what it will cost to own a brand-spanking new, faster, sexier </span><span class="v1">iPhone 3G</span><span class="v1">.</span></p>
<p><strong><span class="v2">Purchase price</span></strong></p>
<p><a href="http://www.last100.com/wp-content/uploads/2008/07/iphone.jpg"><img class="alignright size-full wp-image-2066" title="iphone" src="http://www.last100.com/wp-content/uploads/2008/07/iphone.jpg" alt="iphone" width="350" height="119" /></a><span class="v1">We already know this but it bears repeating. AT&amp;T and Apple are subsiding the </span><span class="v1">iPhone 3G</span><span class="v1">, making it cheaper for consumers to buy up-front. The new 8GB model will cost $199, the 16GB model will cost $299. That&#8217;s a heck of a lot cheaper than the $600 early adopters paid for the original iPhone, which was later reduced by $200, then it settled in at $299 and $399 for the two phones.</span></p>
<p><span class="v1">While it looks as though consumers are saving $200, many folks have run the math [</span><span class="v1"><a href="http://www.macworld.com/article/133872/2008/06/fasternotcheaper.html">Macworld</a></span><span class="v1">] and are finding that&#8217;s not the case. See next item.</span></p>
<p><strong><span class="v2">Monthly subscription cost</span></strong></p>
<p><span class="v1">The monthly subscription will cost you an additional $10, meaning that over the course of a two-year contract, or 24 months, consumers will pay an additional $240 for an </span><span class="v1">iPhone 3G</span><span class="v1">. You&#8217;ll be $40 in the hole.</span></p>
<p style="text-align: center;"><a href="http://www.last100.com/wp-content/uploads/2008/07/att-plans.jpg"><img class="size-full wp-image-2068 aligncenter" title="att-plans" src="http://www.last100.com/wp-content/uploads/2008/07/att-plans.jpg" alt="att price plans" width="450" height="416" /></a></p>
<p><span class="v1">This extra cost, supposedly, is because iPhone users tend to surf the Web and check email more than any other cell phone user. They&#8217;re using the network more. Well, duh. This feels like when you get something for free &#8212; or low cost &#8212; and then you&#8217;re told you have to pay more for it. Suddenly the bargain doesn&#8217;t seem so much like a bargain anymore.<br />
</span></p>
<p><span class="v1">That extra cost adds up because you are required to purchase a two-year contract. However, AT&amp;T also said today consumers can buy the </span><span class="v1">iPhone 3G</span><span class="v1"> without committing to the two-year service agreement &#8212; for an additional $400 [via </span><em><span class="v3"><a href="http://www.ft.com/cms/s/0/4a97aabe-4793-11dd-93ca-000077b07658.html">Financial Times</a></span></em><span class="v1">]. Ouch.</span></p>
<p><span class="v1">What&#8217;s disappointing about the $400 no-contract premium is that you&#8217;re still locked in to AT&amp;T. You cannot use the </span><span class="v1">iPhone 3G</span><span class="v1"> on another compatible network unless you jailbreak it. (See </span><span class="v1"><a href="http://www.tuaw.com/2008/07/01/doin-the-wacky-atandt-math2/">The Unofficial Apple Weblog</a></span><span class="v1">&#8217;s post on AT&amp;T&#8217;s &#8220;wacky&#8221; math.) </span></p>
<p><a href="http://www.last100.com/wp-content/uploads/2008/07/att-iready.jpg"><img class="alignright size-full wp-image-2069" title="att-iready" src="http://www.last100.com/wp-content/uploads/2008/07/att-iready.jpg" alt="att iready" width="300" height="255" /></a><span class="v1">To be fair, AT&amp;T produced an excellent </span><span class="v1"><a href="http://www.wireless.att.com/cell-phone-service/specials/iphone-info.jsp">FAQ</a></span><span class="v1"> for all that you need to know about </span><span class="v1">iPhone 3G</span><span class="v1">. This includes common questions, if you&#8217;re new to AT&amp;T, and if you&#8217;re a current AT&amp;T customer. It&#8217;s a must-read before you head to an Apple or AT&amp;T store to put down your credit card. (See also the </span><span class="v1"><a href="http://www.youtube.com/user/attvideolog">AT&amp;T video channel</a></span><span class="v1"> on YouTube.)</span></p>
<p><span class="v1">If you&#8217;re curious about the </span><span class="v1">iPhone 3G</span><span class="v1">, Apple posted a </span><span class="v1"><a href="http://www.apple.com/iphone/guidedtour/">guided tour video</a></span><span class="v1"> today which pretty much tells us what we already know about the new hardware and software upgrade.</span></p>
<p><strong><span class="v2">Texting isn&#8217;t included</span></strong></p>
<p><span class="v1">Under the original iPhone contract, 200 text messages were included in the $20 data plan. Not a lot, but enough to get started. If you wanted more, you paid extra &#8212; just like it is for all texting plans from the wireless carriers.</span></p>
<p><span class="v1">But with </span><span class="v1">iPhone 3G</span><span class="v1">, texting isn&#8217;t included. Consumers will now have to pay $5 a month for 200 messages, $15 for 1,500, and $20 for unlimited. That&#8217;s an extra $120 a year for the minimum of 4,800 text messages, which my kid can knock out in a couple of months easy.</span></p>
<p><span class="v1">Suddenly the cheapest plan, which includes 400 minutes of prime talk time, isn&#8217;t $69 anymore but $84 or $89 a month with texting &#8212; and that doesn&#8217;t include local fees and taxes added on to your phone bill.</span></p>
<p><span class="v1">Suddenly, that $200 savings is at least a $160 loss when you add in the more expensive subscription plan and texting.</span></p>
<p><span class="v1">Exactly how much does AT&amp;T make off text messaging? </span><span class="v1"><a href="http://www.crunchgear.com/2008/07/01/atts-text-messages-cost-1310-per-megabyte/">CrunchGear</a></span><span class="v1"> worked up the numbers and found that AT&amp;T&#8217;s text messaging will cost the consumer </span><em><span class="v3">$1,310 per megabyte</span></em><span class="v1"> if there&#8217;s no texting plan. Consumers can buy a la carte SMS messages for 20 cents each (up from 5 cents, then 15 cents).</span></p>
<p><span class="v1">Nicholas Deleon&#8217;s bottom line for </span><span class="v1">CrunchGear</span><span class="v1">: &#8220;AT&amp;T is absolutely screwing each and every one of you with these text messages prices. I don&#8217;t want to say they should be free, but there&#8217;s no way they should cost what AT&amp;T charges.&#8221;</span></p>
<p><strong><span class="v2">The &#8220;oh yeah&#8221; costs</span></strong></p>
<p><a href="http://www.last100.com/wp-content/uploads/2008/07/iphone_tour_guide.jpg"><img class="alignright size-full wp-image-2067" title="iphone_tour_guide" src="http://www.last100.com/wp-content/uploads/2008/07/iphone_tour_guide.jpg" alt="iphone tour" width="210" height="162" /></a><span class="v1">There is a one-time $36 activation fee. If you paid this when you bought your iPhone, that fee will be $18.</span></p>
<p><span class="v1">If you want access to Microsoft Exchange features, including push email, you&#8217;ll  need to buy the Enterprise data plan &#8212; starting at an additional $15 a month. If  you don&#8217;t need Exchange but would like push email &#8220;for the rest of us&#8221;, a year&#8217;s subscription to MobileMe (Apple&#8217;s revamped .Mac service) will cost $99 after a free three-month trial.</span></p>
<p><span class="v1">Finally, for current AT&amp;T subscribers, are you eligible for a phone upgrade? This shouldn&#8217;t affect current iPhone owners because they bought their phones before July 11. But for those under contract using different AT&amp;T phones, you&#8217;ll have to pay more for the </span><span class="v1">iPhone 3G</span><span class="v1">. </span></p>
<p>A<span class="v1">nd don&#8217;t forget, if you are switching from another carrier, and you&#8217;re still under contract, you&#8217;ll be subject to an early termination fee.</span></p>
<p><strong><span class="v2">Will the added cost be worth it?</span></strong></p>
<p><span class="v1">For those who do not own an iPhone and have been waiting patiently to get one, they won&#8217;t know the difference. Owning an iPhone will expensive, just like it is for other smartphones on the market like BlackBerry and Nokia.</span></p>
<p><span class="v1">For those who have owned an iPhone from the start, the move to 3G will smart  because we never knew how good we had it. The iPhone 3G may be twice as fast, but it&#8217;s not half the cost. </span></p>
<p>---<br />Related Articles at last100:<ul><li><a href="http://www.last100.com/2008/07/05/weekly-wrapup-30-june-4-july-2008/" rel="bookmark" title="Permanent Link: Weekly wrapup, 30 June &#8211; 4 July 2008">Weekly wrapup, 30 June &#8211; 4 July 2008</a></li><li><a href="http://www.last100.com/2007/10/12/universal-music-to-form-total-music-another-assault-on-apples-itunes/" rel="bookmark" title="Permanent Link: Universal Music to form Total Music, another assault on Apple&#8217;s iTunes">Universal Music to form Total Music, another assault on Apple&#8217;s iTunes</a></li><li><a href="http://www.last100.com/2007/12/04/nokia-universal-announce-comes-with-music-devices/" rel="bookmark" title="Permanent Link: Nokia, Universal announce &#8220;Comes With Music&#8221; devices">Nokia, Universal announce &#8220;Comes With Music&#8221; devices</a></li><li><a href="http://www.last100.com/2008/05/13/hbo-offers-six-shows-on-itunes-even-with-higher-prices-savings-are-considerable/" rel="bookmark" title="Permanent Link: HBO offers six shows on iTunes; even with higher prices, savings are considerable">HBO offers six shows on iTunes; even with higher prices, savings are considerable</a></li><li><a href="http://www.last100.com/2007/12/05/more-details-on-nokia-universals-comes-with-music-offering-and-why-totalmusic-is-doomed-from-the-start/" rel="bookmark" title="Permanent Link: More details on Nokia, Universal&#8217;s &#8220;Comes With Music&#8221; offering, and why Total Music is doomed from the start">More details on Nokia, Universal&#8217;s &#8220;Comes With Music&#8221; offering, and why Total Music is doomed from the start</a></li></ul></p><br />]]></content:encoded>
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		<title>AT&amp;T says its 3G network is nearing completion; we&#8217;re not so sure</title>
		<link>http://www.last100.com/2008/05/22/at-were-not-so-sure/</link>
		<comments>http://www.last100.com/2008/05/22/at-were-not-so-sure/#comments</comments>
		<pubDate>Fri, 23 May 2008 03:37:23 +0000</pubDate>
		<dc:creator>Daniel Langendorf</dc:creator>
				<category><![CDATA[Comms]]></category>
		<category><![CDATA[Mobile]]></category>
		<category><![CDATA[AT&T]]></category>
		<category><![CDATA[iPhone]]></category>

		<guid isPermaLink="false">http://www.last100.com/?p=1886</guid>
		<description><![CDATA[AT&#38;T says that its rollout of a speedier 3G mobile network is nearing completion in the U.S.
Bull.
AT&#38;T says all it needs to do is add six more markets by the end of June and deployment of High Speed Uplink Packet Access technology — faster access to data networks for mobile phones, for those who could [...]]]></description>
			<content:encoded><![CDATA[<p><a href="http://www.last100.com/wp-content/uploads/2008/05/att_logo.jpg"><img class="alignright size-full wp-image-1887" title="att_logo" src="http://www.last100.com/wp-content/uploads/2008/05/att_logo.jpg" alt="" width="139" height="185" /></a>AT&amp;T says that its rollout of a speedier 3G mobile network is <a href="http://arstechnica.com/news.ars/post/20080522-just-in-time-for-apple-att-wrapping-up-3g-network-upgrade.html">nearing completion</a> in the U.S.</p>
<p class="p2">Bull.</p>
<p class="p2">AT&amp;T says all it needs to do is add six more markets by the end of June and deployment of <a href="http://en.wikipedia.org/wiki/HSPDA">High Speed Uplink Packet Access</a> technology — faster access to data networks for mobile phones, for those who could care less about tech speak — will reach more than 280 markets.</p>
<p class="p2">So? Will you get 3G speeds where you live or work?</p>
<p class="p2">A few miles away from me, in Southlake, Texas, there’s an Apple Store where bunches of people will wait in line, probably in near 100 degree heat, to secure the highly anticipated iPhone 2.0. If they live in the affluent Dallas and Fort Worth suburbs of Southlake or Colleyville or the more modest ‘burbs of Grapevine, Keller, the Mid Cities, Justin, Lewisville — the list goes on — the new iPhone may not receive 3G coverage.</p>
<p class="p2">And this is according to AT&amp;T’s own coverage viewer list, which you can review <a href="http://www.wireless.att.com/coverageviewer/popUp_3g.jsp">here</a>.</p>
<p class="p2">Click on a neighboring city and drill down by zip code, and AT&amp;T’s coverage viewer shows 3G is in every nook and cranny whether a specific city or suburb is listed or not.</p>
<p class="p2">Which is it?</p>
<p class="p2"><a href="http://www.last100.com/wp-content/uploads/2008/05/att-coverage.jpg"><img class="alignright size-full wp-image-1888" title="att-coverage" src="http://www.last100.com/wp-content/uploads/2008/05/att-coverage.jpg" alt="att coverage" width="300" height="222" /></a>It’s clear that AT&amp;T’s 3G-is-nearing-completion announcement is hype leading up to the release of iPhone 2.0, which is expected to be available in early to mid June.</p>
<p class="p2">What’s more, the 3G network will be new and AT&amp;T’s numbers are likely based on controlled tests, so your mileage may vary, depending on where you are. The carrier promises uplink speeds of between 500Kbps and 800Kbps, which is certainly a nice bump — again depending on where you are.</p>
<p class="p2">What’s more accurate to say is that AT&amp;T’s buildout of its 3G network is proceeding along nicely and a majority of major metropolitan and mid-sized cities are expected to be covered by the time the iPhone 2.0 is released. In the meantime, all 3G devices are compatible with the current EDGE network.</p>
<p class="p2">But it’s clear that AT&amp;T still has a lot of work remaining if 3G is to blanket large, medium, and small markets like the EDGE network, which is available in 13,000 cities and along 40,000 miles of highway.</p>
<p class="p2">Our advice: Unless you absolutely, positively must wait in line for iPhone 2.0 as a badge of coolness and hipness, hang loose for a few days. Make sure you get 3G speeds where you live, work, or travel.</p>
<p>---<br />Related Articles at last100:<ul><li>No related posts</li></ul></p><br />]]></content:encoded>
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