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AT&T/Cingular to Give Away 18 Months of iPhone Service? [Update]

Jim Cramer/RealMoney.com has notes from AT&T regarding their plans for the iPhone. His column suggests that AT&T will be using the iPhone to aggressively target customers and implies that they will provide significant discounts in service:

Now, AT&T's all about market share, and if you read between the lines, I think you see a strategy coming where the device's $500 price point is preserved but the service contract is greatly reduced. I think that AT&T -- and not Apple -- is the key to this next leg, and CEO Stan Sigman can make it happen.


A recap of the same article outright claims that AT&T/Cingular will be "giving away its service for a year and a half to those customers who buy the phone".
Update: Cingular rep denies the rumor: "We've always said the only way you can get the iPhone is with a Cingular rate plan."

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66 months ago
strange that no other reports of this are out there. I would expect this was truly "implied" and not outright said. If anyone has more details on what AT&T said in their earnings call, let me know.

arn
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66 months ago
Now THIS is revolutionary!

Sounds too good to be true though. I was expecting very aggressive data-plan pricing, but this goes far further.
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66 months ago
Still doesn't help anybody else outside of the US though.

I can't wait for the iPhone to come to Canada.
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66 months ago

Now THIS is revolutionary!

Sounds too good to be true though. I was expecting very aggressive data-plan pricing, but this goes far further.


Agreed!

I think this would turn many of the "price point is a deal breaker" people into "price point is a deal maker" people.

I know I wouldn't hesitate to sign up for this.
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66 months ago

Still doesn't help anybody else outside of the US though.

I can't wait for the iPhone to come to Canada.


According to this post, it is due in Canada (with Rogers) some time between September and December of this year. He also claims Apple won't let Rogers subsidize the cost of the phone (sounds like what might be happening with Cingular?), so maybe Rogers will have a similar plan with a certain number of free months.
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66 months ago
If that was the case, I would buy the phone in a heartbeat. No question about it. Personally I think this is simply false though. Even at $50/m ($900 over 18 months) you SAVE $400 by getting the phone. It would be stupid not to get the phone. (assuming you can pay the $500 up front)
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66 months ago
maybe its only basic serice
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66 months ago
I don't get cingular here, but if I did and I was going to get the iPhone, I would have been extremely happy if said that if you get the iPhone, just pay for a regular service plan and the data plan is free. I have a hard time believing that they will give free service for a year and a half, I feel it will be more of what has already be speculated: that they will have a special all inclusive plan for the iPhone at a much cheaper price than buying everything individually.
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66 months ago



maybe its only basic serice


Show off.

Wonder how this is going to translate down here where all our providers are GSM and the providers jump through the hoops to sell the cool phones?
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66 months ago

If that was the case, I would buy the phone in a heartbeat. No question about it. Personally I think this is simply false though. Even at $50/m ($900 over 18 months) you SAVE $400 by getting the phone. It would be stupid not to get the phone. (assuming you can pay the $500 up front)


Yeah, it makes no sense. This guy is either off his rock, or he misinterpreted something he heard from some "insider" at the company.

If it were true. the only reason not to get the phone would either be the upfront cost, or the fact that you simply don't need a phone in the first place. AT&T can't go around handing out $400 to anyone needing cellphone service over the next 18 months.
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