AT&T announces upgrade pricing and plan rates for Apple’s new iPhone 4

invisibleSHIELD case for iPadAT&T today announced it will offer iPhone 4, the thinnest smartphone ever with all-new design, FaceTime video calling, Apple’s stunning new Retina display, 5 megapixel camera and HD video recording. iPhone 4 will be available for a suggested retail price of US199 for the 16GB model and $299 for the 32GB model, in company retail stores and online at http://www.att.com/iphone, plus business channels, beginning June 24. Customers can preorder starting June 15.

To let current iPhone customers quickly upgrade to iPhone 4, AT&T will make its best pricing immediately available to any iPhone customer who would be upgrade eligible for a discounted device by the end of 2010.

“This is another very exciting day for AT&T customers,” said Ralph de la Vega, president and CEO, AT&T Mobility and Consumer Markets, in the press release. “By teaming with Apple to deliver an extraordinary device over the nation’s fastest 3G network, we’re enabling our customers to access their favorite social networks and favorite business applications. We know that people are eager to get iPhone 4, which is why we moved up the upgrade eligibility date for current iPhone customers by up to six months. This move, combined with the new wireless data plans we announced last week, will make it more affordable for more people to purchase an iPhone and enjoy the benefits of the mobile Internet.”

In addition, a new iPhone 3GS 8GB for $99 will also be available on June 24.

Pricing
iPhone 4 and the new iPhone 3GS 8GB will be available at a variety of attractive price points for customers:

All new and current iPhone customers who are upgrade eligible, plus existing customers who choose to upgrade early must agree to a two-year term commitment, and select an eligible voice and data plan for iPhone. No Commitment pricing does not require a two-year term commitment, but does require both voice and data service.

AT&T will also offer current iPhone 3GS 16GB and 32GB models at new, lowered price points of $149 (16GB) and $199 (32GB), with a two year term commitment plus voice and data plans, while supplies last.

Eligibility
Existing iPhone customers eligible for an upgrade between today and the end of this year, have been made immediately eligible for AT&T’s best pricing for iPhone 4 with a new two-year term commitment. Consumers can verify upgrade eligibility at http://www.att.com/iphone today. Business customers can verify upgrade eligibility at AT&T’s Premier site, https://www.wireless.att.com/business/.

Preordering
Consumers may preorder iPhone 4 and iPhone 3GS 8GB at AT&T retail stores or online at http://www.att.com/iphone beginning June 15. Business customers can preorder through their AT&T sales representative or by visiting AT&T’s Premier site. For greater convenience and faster delivery, preorders can be shipped directly to a customer’s home or business for delivery as early as June 24. Customers can also have a preorder shipped to their local AT&T store for pick up on or after Friday, June 25.

AT&T stores will operate on a first-come, first-served basis, and will accommodate as many customers as possible.

Consumer Plans
AT&T customers can choose from several monthly plans that start as low as $54.99 per month for individual plans with voice and data. For families, customers can now add additional iPhones to their FamilyTalk account for as little as $24.99 per month, providing voice and data service. All iPhone plans include nationwide long distance and domestic roaming, Visual Voicemail, Rollover, and unlimited Mobile to Mobile calling.

Business Plans
Small business customers may qualify for AT&T BusinessTalk®, a shared minute plan specifically for small businesses. Companies can share up to 20,000 minutes per month among as many as 40 employees. In addition, business customers and employees of many businesses are eligible for discounted service rates. For more information, customers can contact an AT&T business account representative or visit http://www.att.com/iphoneforbusiness.

New Wireless Data Plans
iPhone 4 and iPhone 3GS customers can choose one of AT&T’s new data plans: DataPlus, which provides 200MB for just $15, and DataPro which provides 2GB for just $25. Existing AT&T smartphone customers upgrading to iPhone 4 or iPhone 3GS are not required to switch to a new plan, but can choose to do so. iPhone 4, iPhone 3GS and iPhone 3G customers can add tethering to AT&T DataPro for an additional $20 per month.

Each data plan includes unlimited Wi-Fi usage at more than 20,000 AT&T Wi-Fi Hot Spots nationwide at no additional charge. AT&T will help customers monitor and manage wireless data usage by sending text messages and emails as customers begin to approach their usage limit, and by providing online tools, including an iPhone app that shows monthly usage information.

Currently, 98 percent of AT&T smartphone customers use less than 2 GB a month on average. More information on the new data plans can be found at http://www.att.com/dataplans

Source: AT&T Inc.

43 Comments

  1. Hugh,

    In addition to being rather obnoxious, you misread my post.

    Everyone seems to be crying how “greedy” AT&T has blindsided them with the new data plans and how they are “ripping them off” now with the new plans. Very few were complaining about AT&T ripping anyone off at $30 per month. I can’t possibly see how the new cheaper plans are ripping anyone off. I sure hope AT&T will make enough profit on them not to have to extend the upgrade eligibility term beyond the traditional 18 months.

    And to bring back another point raised by John, there is no change in upgrade policy here, therefore, no indication that they’re trying to lock in more customers in anticipation of any possible additional carrier in the future (near or far). The interpretation is pure, pristine wishful thinking.

  2. Note there are THREE prices:

    New/Upgrade-Eligible (which includes anyone whose contract would expire in 2010),

    “EARLY UPGRADE” is a full $200 more than the new / upgrade-eligible price. This is probably what those of you who are early in your contracts are being shown as OK for.

    NO contract = rubber hose pricing.

  3. I got my 3GS last June; my contract therefore expires in June 2011. According to the AT&T;website, I am eligible NOW, not the end of 2010, not 18 months, not two years. NOW for $18. Either that, or what I see as very clear English isn’t clear after all.

  4. @Jim,

    If you read the whole piece, it says tethering is available for $20/month. This was announced a while ago, so I don’t know why the ATT sales people don’t know about it. Wait, yes I do, they are clueless.

  5. I really like the new iPhone, but AT&T is driving me nuts with the new data plans.

    Everyone is acting like they lowered the price. They most certainly did not. They cut the data limit by 60%, yet only dropped the price by $5!

    At $30 for 5 GB, I was paying $6/GB. Now, at $25 for 2 GB, users will be paying $12.50/GB. They marked up the data plan by over 100%, and are trying to pass it off as helping the consumer!! Are they serious?

    As for tethering, why does it cost $20 just for the right to click a button. For $20, tethering should include additional bandwidth above the 2 GB limit.

    If I opt to keep my existing “unlimited” data plan, can I still add the tethering? Or, do I have to downgrade for the right to pay them an additional $20/month?

  6. “2G owners were able to upgrade early because they’re phones weren’t subsidized. I paid $500 for mine.”

    Very common misconception. Original iPhones were fully subsidised (remember Ballmer’s reaction: “Five hundred dollars???!!! Fully subsidised???!!!!”). The subsidy model was different, though ($150 upfront, plus $7 per month for first 24 months).

  7. Jim TIV

    “You’re new here, aren’t you?”

    “Hardly little one… hardly.”

    You can’t blame me for thinking you’re new; I wasn’t expecting a ‘veteran’ reader to only notice the & issue now… especially since almost every other thread here mentions AT&T.

  8. AWS:

    It appears that you fall into that 2% user group on AT&T (those that use more than 2GB of data per month). That’s just unfortunate for you.

    You really can’t look at it from your own perspective. This is really cheaper for a very large number of iPhone owners, and significantly cheaper for quite a few of them (those that don’t YouTube much and fall below 200MB). We’ll see what’s the reaction of the general audience, but I’m certain that the new $55 iPhone plan will be heavily advertised and will become wildly popular with the new customers. I’m sure quite a few old ones will switch, too.

    Unfortunately, for users such as yourself, you’ll either have to bite the bullet and pay the overages (when you incur them), reduce your data usage (and the quality of your user experience), or unlock your phone and move it to T-Mobile. At the moment, they still offer unlimited data plan.

  9. I think I will wait for the full 2 year cycle. Why?
    1. Can keep my current data plan.
    2. Wait until more people have to new iPhone so I can make video calls.
    3. Wait until the 64 GB version comes out.
    4. Wait until ATT have more bandwidth to handle the increased demand.

    #3 is probably the most important to me.

    Apple are going to have a problem with their products being heavy on network usage. They are so far ahead in the curve that it takes a long time for everyone else to catch up. Even their cellular partners.

  10. @singidumum

    I’m all for reducing the price of the data plans. And, I’m sure it will benefit a lot of people.

    My argument is that they didn’t reduce the price of anything. They actually increased it. With new data apps coming, such as Netflix, they are looking for overages… even encouraging them.

    When they cut the max data throughput by 60%, they should have reflected that in the price. The new 2 GB plan should be priced around $15. That’s all I’m saying.

    SMS/MMS, data, and tethering all use the same pipe, but they expect me to pay for the same exact bandwidth 3 times. It’s a nice racket.

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