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Discounted Limited Data Plan for iPhone Coming From AT&T?

BusinessWeek reports that AT&T is considering introducing a discounted limited data plan for the iPhone at $20 per month. AT&T currently offers only an unlimited data plan for $30 per month, and the data transfer cap for the rumored discounted plan remains unknown.

Analyst Richard Doherty claims that the additional data plan option is being driven by Apple, which wants to offer a lower-cost entry point for the iPhone. AT&T, which is reportedly still trying to lock up an extension to its exclusivity agreement for the iPhone, is also looking for ways to continue to increase its subscriber base.

The exclusive U.S. iPhone service provider is considering cutting the price of its monthly service package or offering a range of lower-priced plans, say people with knowledge of the company's thinking. One plan that could be introduced as early as late May would include limited data access at a $10 monthly reduction, the people say.

The possible price cut likely reflects the back-and-forth between AT&T and Apple (AAPL) as they work out whether and under what terms AT&T would remain the sole U.S. iPhone carrier. Apple may want flexibility in pricing as a condition, analysts say. "We understand it's part of the extension [of its contract] that AT&T wants to maintain," Richard Doherty, director at consultant Envisioneering Group, says of the prospect of lower data-plan prices. As Apple considers whether to widen its circle of U.S. providers, AT&T may have less ability to balk at Apple's requests.

The report also touches on rumors of a price drop for the next-generation as component prices continue to decline and AT&T considers offering the entry-level iPhone for $99 instead of the current $199. A prepaid iPhone is also reportedly under consideration.

Rumors of a discounted iPhone data plan from AT&T surfaced earlier this month, although the previous reports did not include mention of limited data transfer at the reduced rate.

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36 months ago
I just don't understand why this has been so slow to come up. This should have been an option from the beginning.
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36 months ago

A prepaid iPhone is also reportedly under consideration.

You have my interest.
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36 months ago
What would the monthly limit look like? Say a 1 GB cap on data usage?
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36 months ago
They should def have more scalability in the iPhone plans.
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36 months ago
Hey AT&T, how about getting rid of the ridiculous charges for text messages too? With my current plan (original iPhone), I get 200 messages included with my $20/month data plan. Once I go 3G, I'll pay $30 a month and get 0 text messages. I'll have to pay an extra $5 to get my 200 messages again, taking my monthly increase to $15. Lame. Very lame.
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36 months ago
I think this is the only way to draw new contracts to ATT.
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36 months ago
A cheaper iPhone wouldn't interest me as much as a cheaper data plan. You only pay for the iPhone once, but you have to pay every month for the service. So a $10-15 price drop in a data plan would have me more excited than a $100 price drop for an iPhone.

If they put a 1GB cap on data usage and priced it at $15 or $20 a month, I would be very interested.


I bet the cap will be much lower than 1 GB.


Most likely, but it would be nice.
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36 months ago

What would the monthly limit look like? Say a 1 GB cap on data usage?


Which I would love because I get somewhere between 500 MB and 1 GB on my iPhone.

I bet the cap will be much lower than 1 GB.
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36 months ago
It's the data plan which made me ultimately decide not to get an iPhone. I do not have a need for a data plan and won't pay for one. While this is a step in the right direction, still no deal for me. Chances are, I'll probably get an iPod Touch when the prices come down so there will likely never be an iPhone for me.....
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36 months ago
Great idea, but as long as there is a mechanism that warns you before you go over data usage.

I highly doubt it as that would be the ethical thing to do. However, they will likely just invisibly start charging you $1/1kb if you go over... huge earning potential.
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