RSSDetails surface on AT&T, Apple iPhone 3G deal
By Ed Oswald | Published June 10, 2008, 11:39 AM
Among the changes in AT&T's updated deal with Apple are the end of revenue sharing and special plans for the iPhone, as well as a new requirement for phones be activated in-store.
The carrier, while confirming it will maintain its exclusive rights to the iPhone 3G, also confirmed Monday that it will no longer share revenues with Apple. Instead, as was rumored, the cost of the phone will be subsidized by AT&T.
Plans for data access will be the same as traditional smartphone plans for 3G: $30 per month for consumers, and $45 per month for business for unlimited usage. Currently, the iPhone data plan costs only $20 per month.
No doubt, the subsidies for what is expected to be one of the best selling phones of the year, will drag down AT&T's earnings. The company expects the new strategy to shave as much as 12 cents per share off its earnings this year, and continue to be a net negative through 2010.
Apple is also preparing to tackle unlockers head-on. AT&T distribution chief Glenn Lurie told Gizmodo that the two companies are preparing to change the way the device is activated.
Instead of activating through iTunes, users will be required to activate the device in-store at either a company-owned AT&T store or through Apple. Making matters worse for some is that there will be no online ordering -- all sales will initially be through the retail locations.
According to Lurie, the activation process takes about 10 to 12 minutes. This could add hours of wait time to those who camp out on the first day of sales to get their hands on the device.
Dow Jones Newswire added that the two companies are also working on ways to ensure phones stay on the AT&T network, including some type of penalty for those who don't activate their devices within 30 days of purchase.
AT&T will force any iPhone 3G customer to sign a new two-year contract regardless of his current contract status. In addition, consumers who purchased first-generation iPhones after May 27 will reportedly be eligible for a free upgrade to the new model. BetaNews has contacted Apple and AT&T for further details, which may be forthcoming.
I always find it interesting when I read these stories about cell phone manufacturers tying a product to one carrier exclusively in THIS country but not abroad. This violates American racketeering laws, and it violates telecommunication rules regarding number portability. Yet, no surprise here, Bush administration cronies refuse to step-in and enforce regulations to protect consumers.
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|Where can we get specs for the new phone? I heard it had 3g and stuff.
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|nevermind
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|AWESOME.. I'm heading down to the ATT store with my tent to be first in line!!! Real Apple freaks will wait in endless lines..
Wait I wanted to buy it from an iMac Genius at the GeniusBar!!!
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|Wow, the first iphone was handed out like candy for 600 bucks at first, now you get to wait in line at a store so they can activate it for you. Now imagine waiting in line for hours, just to be told you don't qualify because your credit is bunk.
At least before you just paid, skipped home and was told by itunes your screwed, always nicer then having some dude making 7 dollars an hour saying that to you.
Yes July 11th will indeed be very interesting, I think ill wait awhile after when the hype has died down and the die hard fans are satisfied.
I wonder what this means for all the iphone 1.0 owners, will they just get charged a big fee for not sticking to the two year contract, or will they have to pay full price, something insane, like 800 bucks. Guess that will cut down on those wanting a new device, once again after waiting hours in line.
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|Is the 3G usable as a modem via USB cable? For example to camp out at the park with an eee or similar..?
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|Nope.
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|...sigh...
U sure? What about those 'Enterprise functions - check!' ?
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|*laughs*
I've seen many folks and articles stating it's not possible.
...and you saying it is.
Care to point us all to where you got that info?
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|I was really hoping that Apple would find a way out of AT&T.... if they are smart they would--- and making it tougher for unlockers will actually HURT Apple. They should make the Iphone multi-carrier and I would be an owner
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|"AT&T will force any iPhone 3G customer to sign a new two-year contract regardless of his current contract status."
Okay, wait. Say, as an example, I just got the Tilt a few months ago. I would be able to get the 3G iPhone at the discounted price as long as I re-up my contract? That's different from what a local store told me. I'd have to pay full retail price since I'm not eligible for an upgrade.
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|That's what we're trying to find out from Apple and ATT. Lots of conflicting information out there.
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|thats the way it was last time where regardless if you upgraded the day before you still pay mainstream consumer price and get new contract.
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|Over on Engadget Mobile, they have an article called "burning questions" and they say if you don't qualify for an upgrade, you'll have to pay full retail price. That price has yet to be determined.
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|I wonder if you can apply your FAN discount to the 3G phone?
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|discount to the actual phone, not a chance.
to keep fan discount on account so your monthly service isnt affected if its the same with the original then no but maybe since they aren't sharing revenue anymore at&t will lighten up on this issue.
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|No I know they wont get a discount on the phone. I was talking about a discount on the plans. I can get discounts on every phone's plan except my iphone.
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|Figures.
It's cheaper than the iPod Touch of the same size, so instead of lowering the price of the Touch, they lock you into a service agreement.
Cute.
Guess I'll be getting an 8GB Meizu M6 for Father's Day then. ;)
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|Apple continues to wear the Nazi jacket.
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|If you have to activate in the store why will there be a penalty if you don't activate within 30 days?
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|I would assume that you retain the right to NOT activate your phone, but that an activation fee will be charged for coming back after 30 days.
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