iPhone 3G AT&T Voice/Data Plans

With all the hype surrounding the iPhone 3G, and with all the major technology blogs reporting on pricing and availability, I decided to do my own fact hunting and was able to gather a multitude of information from an informed and precise AT&T representative. Here is what I found out.

Summary of Key Points

• You may buy the iPhone 3G for $199/$299 (subsidized) as a new subscriber or as a first generation iPhone customer. You may be eligible for subsidy pricing if you are in good standing as a current subscriber.
• Current AT&T customers not eligible for upgrade pricing will be made eligible at the launch of the iPhone 3G (this makes sense because subscribers who skipped the last iPhone, or those who purchased plans last year would otherwise need to wait, eliminating a large sector of potential buyers; the phone has only been available for 12 months, less than the length of the average contract.) This is my own personal guess, but good standing and good credit might apply.
• If you receive the iPhone at the subsidized price and cancel your plan within 30 days, you get your money back, but must return the phone. If you cancel your plan after 30 days, you get to keep the phone, but must pay the Early Termination Fee (ETF).
• You may use your iPhone on another plan once canceled after 30 days, but the full features of the phone might be unavailable.

For privacy, the representative’s name will be hidden.

Me: I was planning on buying the new iPhone, but according to what I’ve heard, if you did not purchased the 2G iPhone, or aren’t a new subscriber, you are not eligible for the subsidized prices of $199/$299. I was hoping you could verify this for me.

Representative: Correct, it is set up for someone who just got the last one, and now there is an upgrade.

Me: So if I bought one I would have to pay the unsubsidized price and I cannot cancel before 30 days or AT&T takes the phone even if i don’t buy it at the subsidized price?

Me: I thought if I bought the phone and a plan I owned it?

Representative: I am sorry, I do not think I understand the question.

Representative: You do own it.

Me: I heard that if you buy the phone subsidized, but then cancel your account before 30 days, you must return the phone and I was wondering if this was true AND if it held for someone like me who would have to buy the phone unsubsidized.

Representative: I am in technical support, so I would need to research that for you. I would be happy to do that, if you can allow me five minutes to see what I can find out?

Me: Sure thank you. I appreciate your time–I know you must be getting a ton of questions about this phone.

Representative: I will return.

Representative: Device Pricing: $199 8GB and $299 16GB for new activations and qualified upgrades with 2 year agreement

Me: Ok, so that appears to be the subsidized price.

Representative: That is the price.

Representative: It is cheaper, but the data plan will be more.

Me: I am not eligible for the subsidy because i just got a phone a few months ago. Are you saying the $199/$299 is for unsubsidized plans also?

Representative: Data Plans & Pricing The 3G iPhone will be activated on existing AT&T voice rate plans, but new data plans have been created for the 3G device. All 3G iPhone customers are required to have one of the new data plans and qualifying voice plan Customers intending to use the 3G iPhone for access to corporate email, business applications or access to corporate intranet are required to activate with Enterprise Data Plan for iPhone The 2G data rate plans will remain available for 2G devices until further notice IRU service discounts for both voice and data plans will apply to 3G iPhone, but not 2G iPhone CRU service discounts for voice and data will apply to both 2G and 3G, when on a qualifying data plan IRUs will not get a discount on device purchase for 2G or 3G iPhones

Representative: Yes.

Representative: It is the straight up price, it is already cheaper.

Me: Device Pricing: $199 8GB and $299 16GB for new activations and qualified upgrades with 2 year agreement.

Me: I wouldn’t be a new activation or a qualified upgrade though, at least that’s what I assumed.

Representative: Yes, it would add two years, I believe. I am still reading.

Representative: Upgrade eligibility will be determined based on standard upgrade eligibility rules. Customers must be upgrade eligible to receive the qualified upgrade pricing. However, not all customers will be qualified upgrades. AT&T has not determined the price of the 3G device for non-qualified upgrades. All customers will be required to sign a 2 year agreement. There will not be a “no commitment” price for the 3G iPhone.

Me: So i wont be eligible for the $199/$299 price?

Representative: NOTE: When the 3G device launches, all active postpaid customers in good standing with a 2G iPhone will be eligible to receive the qualified upgrade pricing for a 3G device regardless of service tenure (customers that would not otherwise be eligible due to tenure will be made eligible at launch).

Representative: It would be determined by your existing service standing.

Me: okay

Representative: Like how often someone is late on the bill, or how much money they spend with us.

Representative: Things like that determine your eligibility.

Me: So if I’m on a family plan and have 18 months left on my contract, if I were in good standing they might say “You are upgrade eligible?”

Representative: Yes.

Representative: A family plan spends more money, that could help.

Me: Okay

Representative: When the 3G device launches, all active postpaid customers in good standing with a 2G iPhone will be eligible to receive the qualified upgrade pricing for a 3G device regardless of service tenure (customers that would not otherwise be eligible due to tenure will be made eligible at launch).

Me: “Customers that would not otherwise be eligible due to tenure will be made eligible at launch.” That would include someone like myself if in good standing?

Representative: That is what it is saying in my information.

Me: Even though I’m not upgrade eligible, I would be made eligible for the phone at launch?

Representative: I understand, that is what it sounds like. That is only fair because it has not been out that long.

Representative: Activation of 2G devices will continue to be activated via the existing iTunes tether process Existing 2G data plans will remain available for 2G devices until further notice

Me: Good point. Even if you got a phone last June you wouldn’t be able to get an iPhone now still if you weren’t upgrade eligible.

Representative: They have to take that into the process.

Me: AT&T would eliminate a good chunk of revenue if they didn’t make people eligible at launch

Representative: The return policy for 3G is changing from 14 days to 30 days for both Apple and AT&T stores. To cancel service within the first 30 days, the customer must return their equipment to the place of purchase (no exceptions). If the customer cancels service after 30 days, they will be charged the ETF. The customer is not required to return the device to cancel after 30 days.

Representative: I have tons of information!

Me: “To cancel service within the first 30 days, the customer must return their equipment to the place of purchase (no exceptions). If the customer cancels service after 30 days, they will be charged the ETF. The customer is not required to return the device to cancel after 30 days.”

Me: So I would have to return it, but I would get my money back if i cancel within 30 days?

Me: After 30 days I can cancel and keep the device, but pay the ETF.

Representative: That is what it says, but anything is subject to change.

Me: if i were to cancel after 30 days and pay the ETF—I could still use the phone with AT&T on another plan–I just wouldn’t have any of the extra goodies like visual voicemail etc?

Representative: It is just like any other contact with this one.

Representative: It would be like any other PDA, you would have “issues” with it without the iPhone data plan.

Me: Would you mind explaining the issues one might have? Would they go away if you added a data plan?

Representative: Yes, they would, but without it you may not be able to use the phone. You might as well, just work through the contract.

Representative: Not, pay the ETF and be it is yours in two years.

Me: “Not, pay the etf and be it is yours in two years.” What? I don’t understand what you mean.

Representative: If you cancel after 30 days you will pay the early termination fees.

Me: Yes, and you’re saying the phone might not work if i cancel the plan or might not work with all the features?

Representative: Correct.

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