AT&T: 3G iPhones will be available unsubsidized, without contracts

By Tim Conneally | Published July 1, 2008, 5:00 PM

AT&T today unveiled its prices for the 3G iPhone when it is made available at 8am on July 11th. Buried in today's announcement was the news that customers can opt to purchase their new iPhones outright, without a contract.

New customers or those eligible for an upgrade discount will be able to snag the 3G iPhone at AT&T's lowest price: $199 for the 8 GB model, and $299 for the 16 GB. All customers at that price will be required to sign a two-year contract.

Those upgrading are subject to an $18 upgrade fee, and new customers must pay a $36 activation fee. Existing customers who aren't scheduled for an upgrade can purchase an 8 GB iPhone for $399 or a 16 GB for $499 with a two-year contract renewal.

AT&T has even announced a pricing scheme for the device with no required contract. Though it will not be available on the launch date, no-contract iPhones will cost $599 for the 8 GB, and $699 for 16 GB.

Also announced were 3G voice, data (e-mail and Web browsing), and SMS bundles that range in price from $69.99 a month for 450 anytime minutes to $129.99 a month for unlimited minutes.

Appleinsider compared the newest iPhone plans with those previously offered and found that it will actually cost renewed subscribers between 12.5% and 25% more to maintain their current level of service.

By comparison, Rogers Wireless subscribers in Canada actually require a three-year contract and do not offer an unlimited plan. iPhone-specific plans from Rogers begin at $60 for 150 anytime minutes, 400MB, and 75 SMS per month to $115 for 800 minutes, 2GB, and 300 SMS. Subscribers, however, are not required to pick a pre-made iPhone plan and can create their own a la carte.

Comments

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CANT YOU IDIOTS SPELL ANYTHING RIGHT? IF YOU CANT AFFORD THE I PHONE, YOU DON'T NEED IT. TRY PAYING YOUR HIGH INTEREST CREDIT CARDS OFF.

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so,it will be possible to buy the iphone without contract, but at wich Date will it be possible?
because i'm from Belgium, will it also be possible then?
grts

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AT&T still dont have a family plan where you have the data and messaging bundle for one low price... For two Iphones, you have to spend $100($50 PER PDA Bundle)extra on top of the monthly minute usage... With the phone being used for internet usage, this is a serious problem for me...

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And I thought American wireless companies gave us the shaft, it looks like our neighbors to the north have it even worse.

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Worse still across the Pacific. Our plans haven't been finalised yet, but it looks like you can grab the iPhone for $0 upfront on an $80 plan which includes $70 of calls/SMS and $10 of data (based on 2 min calls, that's 88 minutes and 27MB of data). If you want more data, say, 1GB, that's an extra $89 per month.

Ouch? :p

EDIT: sorry, those are Aus prices through Telstra. Works out to basically the same in USD thanks to the current exchange rate.

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Yeah, I have a comment. This pricing structure is definitely different than what was buzzing around a month ago. What happened to selling existing customers iPhones and their contract was simply renewed at the time of purchase for another two years? $499 for an existing customer (sound of someone being screwed inserted here). I may compare this to opting out of my contract, pay the fine, and get another device from someone else.

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This is nothing new. Cingular (prior to being AT&T) has had this practice with many phones for some time. This was also confirmed when I questioned both AllTel and Verizon Wireless about it.

Granted, the phones are a great deal more expensive without the contract, but I do enjoy the enhanced customer service I receive when I can walk away at my choosing without having to pay the carrier another dime.

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