AT&T Is Making (some of) of the Right Moves

Today, AT&T made a good move by changing the pricing structure of their data plans. If you ask me, this solidifies their hold on the iPhone for a good while. I’ve said over and over that Verizon is not going to get the iPhone this year–if ever–and I’m sticking by that. Two reasons for this:

1. Verizon doesn’t want it. They’re making plenty of money. They also know that they do not have the strongest, fastest, most reliable network. AT&T does, although it might not seem like it thanks to all the iPhones clogging up the system.
2. AT&T will do anything to keep the iPhone. Despite the way their PR has suffered thanks to shoddy service (again, thanks to too much data and not enough bandwidth), AT&T knows that the iPhone is the lifeblood of their service. Nobody is that attached to a service provider–as long as it works decent and does what it’s supposed to without ripping you off (too much), people will go to whoever has the best phone. And right now, the iPhone is king (despite competition from Android phones).

So, a couple excerpts from the article:

Newcomers will have two options: Under the DataPlus plan, subscribers can pay $15 a month for 200 megabytes of data; that would handle about 400 photos or 100 minutes of streaming video. The DataPro plan offers 10 times that capacity, 2 gigabytes, for $25.

Good move. Both plans are cheaper than what you’re paying now. And who doesn’t like saving money? Plus, very few will actually have to pay extra for additional data:

AT&T says 65% of its smartphone customers use less than 200 MB a month, and 98% use less than 2 GB… And just 3% of AT&T’s smartphone customers account for as much as 40% of its data traffic, contributing to slow transmissions and dropped calls. AT&T must control heavy users, or at least get them to pay more…

Soon, I can virtually guarantee Verizon will roll out a similar pricing structure (if they haven’t already… I’m not familiar enough with their pricing plans).

But not all is rosy for AT&T today. They made some stupid mistakes too. First, this same pricing structure is in place for the iPad as well, which uses significantly more data, as would be expected. Now I’m not sure this will be quite as big a deal as lots of people are saying, because it sucks using that much data on a 3G network anyway (for streaming movies, etc. most people will hunt down a Wi-Fi signal). Who knows, maybe they’re just kind of testing the water with this–if people get too outraged I wouldn’t be surprised to see them tweak this down the road.

Secondly, the last paragraph just boggles the mind (emphasis mine).

IPhone customers who pay an extra $20 a month soon will be able to use the phones to provide Internet connections for laptops or other devices. That process, called tethering, will be available on 3G iPhones this summer when Apple releases a new operating system, AT&T says.

But wait, you can already do that. Just not in the U.S., and not in many other countries. It’s embarrassing that they are literally re-announcing a feature from last year as if it’s some kind of revolutionary feature. Gimme a break.

[USA Today]