Apple iPlans keep it simple
Trust Apple to turn something as mundane as a phone plan into a marketing coup.
Apple and AT&T have announced three calling plans to match with the iPhone, which is all set to launch at the end of the week. The three tier plans are $59.99 for 450 minutes, $79.99 for 900 minutes and $99.99 for 1,350 minutes. It includes unlimited data (EDGE) and 200 SMS messages and other trimmings.
These plans are no different than what AT&T actually offers right now on its website, except that the array of choices on their website can give any one a headache. Apple has kept it simple.
However a word of caution for heavy SMS users – unless you upgrade to the the $10-for-1500 messages (or $20 for unlimited messaging) offer you are going to be served up when activating the phone, you are in for a nasty surprise and a big tab at the end of the month. AT&T typically charges $0.05 for every message – so for extra 100 messages you end up paying $5.
And how these new plans stack up against other phone companies’ offerings? We are plowing through the details, and have found one plan that is better than the basic iPlan: Verizon’s “America Choice Select” calling plan is similarly priced AND includes unlimited messaging. Neil is right – it doesn’t include data and wifi. Sorry about that. Jeff Nolan thinks his T-Mobile plan is saving him money when compared to the iPlan, so check it out.
Update: Read the damn fine print. TUAW reports:
Can you buy an iPhone and just use the built in WiFi and iPod features? Apparently not. According to the small print on Apple’s rate plan webpage, you need to purchase a 2 year wireless service plan. This means your iPhonePod will cost you at least ($60/month * 24 months) + $500/iPhone = $1940 + $36 activation fee + tax.
Related research and analysis from GigaOM Pro:
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Om, you said “Verizon’s “America Choice Select” calling plan is similarly priced AND includes unlimited messaging,” which is completely false because VZW’s plan doesn’t include unlimited data and wifi support like the iPhone’s plan does…which in my opinion is above and beyond more important then txt messages (at least for something like the iPhone that is so dependent on wifi and edge)
Just sketched a quick graph of the pricing trend for these “iProducts.” Check it out here:
http://sketchyd.com/sketch/83
The SMS thing many not be a major issue, depending on how the iPhone handles certain functions. On my T-Mobile BlackBerry, for instance, if I use T-Mobile’s IM client, each message I send and receive is billed as an SMS. If I use the IM clients I downloaded from BlackBerry’s website, all the messages are sent and received over the data plan. They are not considered SMS messages.
Incidentally, T-Mobile recently increased their SMS charges to a whopping 15 cents per msg – sent or received! On the other hand, for $60, they give 600 whenever minutes, unlimited nights & weekends, PLUS unlimited data!
It doesn’t include wifi? Please elaborate.
You saying we can’t hook up to a free wifi hotspot or home wireless network like any ordinary laptop without a “wifi plan”?
Ooh you apple fanboys are hilarious. How is this any different from all the plans offered today. Tomorrow if Jobs sneezes, i am sure you will have something great to write about it. Get a life…
My Gosh! This is fraud! No iPod (or wifi) without a data plan!
Just made my decision a lot easier.
Apple really is a money grabber. Just when I was ready to bite off the big Apple!*&
I wonder what the cancellation terms are for AT&T. Usually for carriers it’s $150 or something like that. Am I wrong?
Assuming that one buys an iPhone,cancels the subscription and then sells it on ebay the cost could really be $710 ($500 + $60 + $150).
The purchaser would then just have to put in his/her SIM card.
BTW does anyone know whether the iPhone can be unlocked?
No, in fact the iPhone is locked to AT&T’s network, so you’re stuck with AT&T (which personally I believe to be an evil, warrantless-wiretapping-enabling, net-neutrality-destroying company) for two years.
We just launched a campaign this morning, telling Steve Jobs to free the iPhone. Check it out here:
http://actforchange.workingassets.com/campaign/iphone
I think it’s in Apple’s best interests to get OUT of the exclusive relationship with AT&T as soon as possible, and let their phones be used on other carriers.
Is it slow day for you Om to discuss calling plans.
Looks like bloggers are turning more like paparazzi behind Paris and celebrities. I dont know your mission people can read about iphone anywhere. It makes sense if you can talk about obscure startup which has great value proposition. Good for your readers and startup which doesn’t have marketing muzzle.
The iPhone cannot be unlocked as it is but I wouldnt be suprised if there is a custom ROM released in the near future where hackers could take the network lock off….