AT&T dramatically revamps data plans, kills unlimited bandwidth

Robert Hallock 2 Jun, 2010 at 12:17pm ET Article published in Tech

AT&T has just announced that it is making sweeping changes to the pricing and packages offered in the company’s roster of smartphone and tethered data plans. From signaling the death of unlimited data to saving many customers some money, there’s a lot to consider in AT&T’s new pricing, so we’ve pulled it apart into an easily-digested format.

Data plan pricing

CANCELED: The $30 “unlimited” plan. Customers with this data plan will continue to receive it unless they change to one of the new options, at which point it cannot be purchased again.
NEW: The $15 DataPlus plan for 200MB of monthly bandwidth. Users that exceed their 200MB cap can get another 200MB for $15.
NEW: The $25 DataPro plan for 2000MB of monthly bandwidth. Users that exceed their 2000MB cap can get another 1000MB for $10.

Tethering

NEW: A $20 tethering plan can be added to the $25 DataPro plan for 2000MB of monthly bandwidth for a total of $45. Users that exceed their 2000MB cap can get another 1000MB for $10.
NEW: Tethering will be available to iPhone users following the release of the new iPhone.

iPad bait’n’switch

Future iPad customers might have a reason to be a little angry today, as AT&T has also announced that, beginning June 7, the $29.99 unlimited plan has gone the way of the dodo. Existing customers can retain their unlimited service, but new customers will be forced to choose between the $15/200MB DataPlus or the the $25/2000MB DataPro plans.

All customers

All of today’s announced changes, save iPhone tethering, go into effect on June 7. AT&T customers are permitted to change to one of the new plans at any time without extending their existing contracts.

Impact

These changes are likely to hurt a small subset of users–less than 2%, AT&T claims–that use mobile data in excess of 2GB per month. These users are, more than likely, the ones that tether. To buy the same 5GB of tethered data AT&T currently offers for $60, AT&T’s new plans would run a customer $75. Most other customers are likely to see a drop in their monthly bill should they decide to hop on one of AT&T’s new plans in exchange for their old.

More broadly, this maneuver could spell the end of unlimited mobile data in the United States. AT&T has confirmed that this type of pricing, including the death of unlimited, will be brought forward through the company’s 4G launch, which begins at the end of this year. Verizon, too, has pronounced the death of unlimited mobile bandwidth via concurring comments from Verizon Wireless CEO Lowell McAdam.

Looking at the smaller carriers T-Mobile and Sprint, it remains unclear if either will view the recent announcements from their larger rivals as an opportunity to follow suit. Both firms seem to be committed to unlimited data for the time being, with Sprint going so far as to advertise it as a major selling point in their efforts to deploy a WiMAX-based 4G network. Even so, the US cellular industry has a funny way of circling the wagons around a remarkably similar set of prices and features.

Comments

2 Jun 2010 ~ 12:23pm Snarkasm For 40% more dollars, you get 1000% more megabytes.

Clever economics, AT&T. I hate you.
2 Jun 2010 ~ 12:39pm jokerz4fun I hate AT$T. They are one of the main reasons why I wont buy an ipad. FFFFFFFFUUUUUUUUUUUU
2 Jun 2010 ~ 12:49pm Linc "Bait'n'switch" usually involves a switch, right? If they get to keep the unlimited plan I don't think that label fits.
2 Jun 2010 ~ 12:57pm Thrax Let's say someone wants to buy an iPad. They buy it tomorrow. They want unlimited data. That iPad probably won't arrive until June 8 or June 9.

Woops, no unlimited for them. It has to be ordered from the device.
2 Jun 2010 ~ 1:08pm BlackHawk I wouldn't make the accusation of collusion but when it comes to data, SMS and similar services, companies sure like to sync their offerings.
2 Jun 2010 ~ 1:27pm Earl So what's gonna happen when the new iPhone comes out? Will we be allowed to upgrade and keep the unlimited data we already had? Jeez AT&T sucks.
2 Jun 2010 ~ 1:34pm Snarkasm I would bet my ass that as soon as you want to change devices, they'll find a way to get you off your contract.
2 Jun 2010 ~ 1:43pm kryyst A nods as good as a wink to a blind man.
2 Jun 2010 ~ 2:51pm MachineDog Engadget is reporting that you can upgrade your phone without losing your "Unlimited" plan. In addition, if you go over the 200MB plan on your device, you can retroactively upgrade to the 2GB plan for that month. As far as overage costs go, at least this is reasonable compared to other mobile companies. I really hope AT&T doesn't get any funny ideas with their land line broadband.

Their mobile broadband cards for laptops will stay unlimited. I suspect this will change with the LTE rollout.

I don't know about you guys, but I'm reasonably hard on my phone and I hit about 1GB per month on Verizon. I'm going on a long trip to New York by road on the 20th of this month till July 5th I think, and I will probably push it pretty hard during that time so I will see then.

Does anyone find themselves going beyond 1GB per month?

P.S. Interesting and on topic to me: My experience with tethering on my Droid has been better than my experience with the MiFi. The MiFi was disconnecting often in a park we were staying at while my Droid was hovering between 3G and 1X.
4 Jun 2010 ~ 1:11pm drasnor I just moved my entire family to an unlimited data plan on T-Mo. We're safe... for now.