AT&T announces Apple iPhone 3G pricing, sales begin 8am local, July 11; sans contract $400 extra

AT&T Inc. today announced iPhone 3G pricing for new and existing AT&T customers, several voice and data plans, and tips on how to be “iReady” when iPhone 3G goes on sale at AT&T retail stores at 8am local time on Friday, July 11.

“We can’t wait to offer iPhone 3G to our customers, and we want to make sure the buying process is as easy as possible,” said Ralph de la Vega, president and CEO of AT&T’s wireless unit, in the press release. “Considering all the great new features of iPhone 3G, we think our pricing and monthly plans present a tremendous value for consumers and businesses alike.”

Pricing and Eligibility

AT&T is helping customers prepare for their iPhone 3G purchase by posting “Get iReady” tips and frequently asked questions at www.att.com/iphone. The site also will include a link for customers to check their upgrade eligibility and other wireless account information.

iPhone 3G will be available for US$199 for the 8GB model and $299 for the 16GB model. These prices require two-year contracts and are available to the following customers:

• iPhone customers who purchased before July 11
• Customers activating a new line with AT&T
• Current AT&T customers who are eligible, at the time of purchase, for an upgrade discount

Existing AT&T customers who are not currently eligible for an upgrade discount can purchase iPhone 3G for $399 for the 8GB model or $499 for the 16GB model. Both options require a new two-year service agreement. In the future, AT&T will offer a no-contract-required option for $599 (8GB) or $699 (16GB).

Current customers may also choose to wait until they become eligible for an upgrade discount. Eligibility is generally determined by amount of time remaining on a current contract and payment history.

Current AT&T customers who are upgrading to iPhone 3G will pay an $18 upgrade fee and new AT&T customers will pay the standard $36 activation fee.

Voice, Data and Text Messaging Plans

iPhone 3G customers can choose from four individual AT&T Nation plans, which bundle voice and unlimited data (e-mail and Web browsing).

• AT&T Nation Unlimited: Includes unlimited Anytime Minutes for $129.99 a month.
• AT&T Nation 1350: Includes 1350 Anytime Minutes and unlimited Night & Weekend Minutes for $109.99 a month.
• AT&T Nation 900: Includes 900 Anytime Minutes and unlimited Night & Weekend Minutes for $89.99 a month.
• AT&T Nation 450: Includes 450 Anytime Minutes and 5,000 Night & Weekend Minutes for $69.99 a month.

All AT&T Nation and AT&T FamilyTalk plans for iPhone 3G include nationwide long distance and roaming, Visual Voicemail, Rollover, unlimited Mobile to Mobile calling, Call Forwarding, Call Waiting, Three-Way Calling and Caller ID.

AT&T will offer FamilyTalk plans, with bundled voice and unlimited data, starting as low as $129.99 a month for two iPhone 3G lines. Up to three additional iPhone lines can be added for $39.99 each.

Unlimited text messaging can be added for an additional $20 ($30 for FamilyTalk plans of up to five lines); $15 (1,500 messages), or $5 (200 messages).

iPhone for Business

Business customers interested in iPhone 3G should contact an AT&T business sales representative or review their account information online to determine their eligibility for upgrade pricing. Corporate e-mail and other business applications require the Enterprise Data Plan for iPhone, which is $45 a month and bundled with an eligible voice plan. Small business customers may qualify for AT&T BusinessTalk, the industry’s only shared plan specifically for small businesses. Additional details on iPhone business offerings are available at www.att.com/iphoneforbusiness.

iPhone 2.0 Software

All iPhone customers will benefit from the iPhone 2.0 software, which will be pre-loaded on all iPhone 3Gs and available as a free download for current iPhone customers. The new software will include numerous enhancements, such as business-class e-mail access via Microsoft Exchange ActiveSync; the iPhone Software Development Kit (SDK), which allows a business to easily create applications customized to its needs; and the App Store, which offers a wide-range of applications — from games to business, education to entertainment and productivity to social networking. For example, AT&T has developed YELLOWPAGES.COM Mobile for iPhone, which takes local mobile search to a new level by allowing users to discover businesses and local events based on their popularity among other iPhone users, get directions and access business reviews.

63 Comments

  1. In the future, AT&T;will offer a no-contract-required option for $599 (8GB) or $699 (16GB).

    Does this mean that Apple will too?? and that they’ll be unlockable so i don’t have to use AT&T;???

  2. AT&T;’s greed will kill iPhone.
    Did you noticed that SMS is not included?
    That makes the plan $15 dollars more expensive, $560 over the period of 2 years.
    On the other hand, fsck SMS, I use 1-2 a month

  3. Well, hopefully Apple stores will start selling at 8am as well. This will make the req’d in-store activation be able to spread out over the entire day.

    Oh, and now I won’t have to lose an entire day waiting in line like last year.

  4. Dumb question who are you going to use? GSM coverage is only provided by t-mobile and AT&T;sprint and verizon use two separate versions of CDMA tech and it isn’t compatible with the iPhone.

    Overall it isn’t bad news

  5. The extra $5/month to get the 200 text messages is B.S. That was the great thing about the iPhone is that new people to smart phones and texting or casual users…combined with the way iPhone does it like iChat…didn’t have to worry about a bit of usage. It does bring the iPhone plan in line with other plans. Of course, if you send/receive less than 50 in a month, you’re better off without the plan. That sounds like Rogers in Canada logic.

    I need the 1500 messages plan anyway, so I have to pay regardless, but for the casual/new user, this is a bit of a bummer. No free lunch.

    Maybe 3G text msg’s arrive faster. ha ha ” width=”19″ height=”19″ alt=”grin” style=”border:0;” />

  6. @Rob

    You think AT&T;’s greed is going to kill the iPhone.

    Try again.

    Check out the plans that Rogers is offering for the iPhone up here in Canada. Not a single one includes unlimited data. Also not a single one includes caller ID or any of that good stuff that is another $15 add on. Also If you’re heavy into texting you will want to add a texting plan I think for another $10. Also not to mention the BS fees that Canadian mobile carriers tack on every month: $6.95 system access fee and $0.50 911 fee.

    So your Cheapest Rogers Plan at $60 a month which includes 400MB of data and 150 weekday minutes with unlimited evenings and weekends and 75 BONUS sent texts a month suddenly turns into a $92.45 a month plan PLUS 5% GST that the canadian government adds on in federal tax.

    Canada is killing the iPhone not AT&T;

  7. a question for those in the know: i have next to no use for a phone (cell-free for 6 years now) but i would like a nice big screen to watch movies on at the gym. if i buy someone’s old iPhone can i get a pay as you go plan for it? Do i have to unlock it to do that or can i do that through AT&T;? Will the phone be bricked when it comes to me, if i buy it used?

  8. Man, that text messaging thing sucks. SMS has got to be _the_ biggest rip-off in modern day service: a couple of bytes (bytes, not kb!) and you pay exorbitant sums for it?! And you have to pay for incoming text messages too–which, btw, you have no control over receiving?!
    Just outrageous….

  9. I watched the Steve Jobs Keynote where he flashed the price on the giant screen that said $199….the crowd roared!!! Not $199 plus a couple extra hundred or so that AT&T;wants to gouge you out of. Not to mention charging for using the actual technology the phone you buy uses (3G)….AND charging for the text messaging!! What next 10¢ per song you play….maybe 25¢ to check the weather…5¢ per photo taken. Why did they lock into these rip off artists. I get my bill every month and it’s approx $240 (that’s w/ the 1st iPhone)….this includes 2 additional non iPhone lines and approx $36 for my home phone. I’m not paying $300/ month to use a stupid phone!!!!!! I didn’t even need one 8 years ago.

  10. Where do I start?

    * unlimited data (e-mail and Web browsing):

    Given how they’re already weaseling into a FIFTEEN dollar/month increase (making this a $160 price increase, not the $40 we originally thought), who’ll give me odds that they’re going to screw customers to the wall with this “e-mail and Web browsing” definition of “data,” and charge additional fees for other types of traffic (IM, VOIP, FTP, MPOG etc.)

    * subsidizing the phone in exchange for the contract, or NOT subsidizing the phone but still requiring the contract. Shrewd!

    * $18 “upgrade” fee?

    Pshaw!

  11. @ Mike K.

    As far as I know, AT&T;offer’s a GoPhone plan for the iPhone (pay as you go with no contract required). The rates aren’t the best, but it’s ideal if you basically want the iPod Touch functionality with the ability to place emergency calls or communications. Downside is you would pay full price ($600) for an iPhone. Buying a used one on eBay like you were thinking, is probably the best way to go.

  12. @ PC Apologist.

    I agree with you. What’s the deal with the $18 upgrade fee? I can only assume that we are paying AT&T;for the time it will take their employees to service us in the checkout line. Apparently, my monthly service contract isn’t enough to pay for that.

    I think IF AT&T;tried to charge for other types of data traffic such as IM, VOIP, FTP, Etc.. there would be an uproar. They would be the first to do it, and the backlash against Apple’s iPhone sales would be too much for Apple. I think Apple would step in and put their foot down (or guarantee AT&T;that if they don’t stop charging for every little thing, that they will not get a renewal in 5 years)(For the 3G iPhone (which would be a 4G data phone by then))(yeah, that’s all confusing).

  13. I can’t wait till they update the iPod touch. I hope they bring it to par with the iPhone, save the cellular stuff. I can get free wi-fi most places i live, so i don’t “need” the 3G network.

  14. I, too, am concerned that other things have been changed besides the removal of the 200 SMS text messages that have just now come to light.

    I want iChat anyway — I don’t ever “text”. But ATT is making me wonder what else they’ll change and start charging.

    MW: what “parts” of the plan are now going to cost us more?

  15. OMG!!!

    We only WISH for prices like these in Canada. Instead, Canadians get HOSED by Rogers… ONCE AGAIN!

    Enjoy your iPhone, USA, it’ll be an iPod touch for me instead…

    Sincereley,
    A Jealous Canadian

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