AT&T Raises Prices for Smartphone, Tablet Data
Spectrum in short supply after T-Mobile deal falls through
01/19/2012 | By Truman Lewis
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ConsumerAffairs.com
| Cell Phones & Smart Phones
AT&T is jacking up data plan rates by as much as 33% for smartphones and tablet computers.
“Customers are using more data than ever before,” said David Christopher, chief marketing officer, AT&T Mobility and Consumer Markets. “Our new plans are driven by this increasing demand in a highly competitive environment, and continue to deliver a great value to customers, especially as we continue our 4G LTE deployment.”
Normally, when one produces and sells more of a commodity, it becomes cheaper. But in the case of bandwidth, demand is outpacing supply and carriers are raising prices or imposing usage ceilings, or both. AT&T prefers to say the plans "give customers more data and value."
“Customers are using more data than ever before,” said David Christopher, chief marketing officer, AT&T Mobility and Consumer Markets. “Our new plans are driven by this increasing demand in a highly competitive environment, and continue to deliver a great value to customers, especially as we continue our 4G LTE deployment.”
The new plans will launch this Sunday, January 22.
The new smartphone plans include:
- AT&T Data Plus 300MB: $20 for 300MB
- AT&T Data Pro 3GB: $30 for 3GB
- AT&T Data Pro 5GB: $50 for 5GB, with mobile hotspot / tethering
Smartphone customers needing additional data can pay $10 per additional gigabyte on the AT&T Data Pro 3GB and Data Pro 5GB plans; AT&T Data Plus users will receive an extra 300MB for $20.
The new tablet plans include:
- AT&T DataConnect 3GB: $30 for 3GB
- AT&T DataConnect 5GB: $50 for 5GB
Existing smartphone and tablet customers will have the choice of keeping their current plans or choosing one of these new plans, and the current $14.99 for 250MB plan for tablet customers will remain available.
The tablet plans are for 30 days and automatically renew every 30 days, unless you cancel service prior to the start of the 30 day renewal, while smartphone plans are covered by contracts, normally three years.
The company said customers should keep their device’s Wi-Fi turned on because data usage over Wi-Fi does not count against a customer’s monthly data plan. AT&T smartphone and tablet customers have access at no additional charge to AT&T’s 29,000 Wi-Fi hotspots nationwide.
Now that AT&T has officially given up on its plan to acquire T-Mobile, it's going to have to keep a tighter rein on its available spectrum, which would have been greatly increased had the T-Mobile deal gone through. Not that AT&T is any stranger to rate caps. It was the first carrier to limit consumption when it introduced tiered pricing plans way back in 2010.
Gabriel Balfour (Thu, 19 Jan 2012 20:57:49 +0000): how come this don`t surprise me!
Eva Johnson (Thu, 19 Jan 2012 21:19:28 +0000): It doesn't surprise anyone who knows these avaricious companies. They're like the grave-nothing is ever enough
Steve Green (Thu, 19 Jan 2012 22:17:49 +0000): NO, more is NEVER enough for these Hogs. No wonder they are in the top ten of America's most hated companies! Remember, Pigs get fat and Hogs get slaughtered. They too are not too big to fall on their faces, with their butts in the air, to get rammed in the ass! From a 30 plus year veteran of the telecom business; me!
Nancy Hartzog (Thu, 19 Jan 2012 23:01:46 +0000): If you want to continue to get the shaft, stay with AT & T. I left them about a year ago and never ever intend to do business with them again. This is one of the most egregious, greedy, unscrupulous companies in the country that has no concern for their customers other than how much money they can steal from them.
Robert Taylor (Fri, 20 Jan 2012 00:35:13 +0000): And I thought the banks were the biggest thiefs, my mistake!
Ron Hall (Fri, 20 Jan 2012 00:54:33 +0000): Glad - so glad we didn't have the T-Mo merger....lower prices indeed...
Kirk Ellingson (Fri, 20 Jan 2012 03:11:02 +0000): The AT&T and Apple partnership was and is the biggest bate-n-switch scheme ever devised.. And if you don't think Apple is planning another bate-n-switch scheme with their new iCloud product, think twice. If you opt in on their iCloud world, you will be stung hard and you will feel the burn.. I already see the inner workings in play and Apple is going to huge extrems to hide it...
Gabriel Alexander Jimenez (Fri, 20 Jan 2012 16:49:04 +0000): Raising Prices for more profit! like they need the money.
Tim Turner (Mon, 23 Jan 2012 01:11:26 +0000): So who do you recommend that can offer the phone prices and plan coverage that AT&T does? I've heard a LOT of complaints about them all. You might get a good deal on one hand, but you'll get short-changed on the other. I work in the boonies and everyone complains about coverage except AT&T. I don't like any of them, but if your going to use it, your going to pay.
Doug Tull (Mon, 23 Jan 2012 01:37:26 +0000): I make a deal with you AT&T: You may raise your prices, but first you have to deliver at least mediocre service. You drop a good 4-5 calls per day, your data connections are s--l--o--w and your customer service is abysmal. AT&T makes so many excuses and then gouges their consumers at every turn. Thank god your merger with T-Mobile was killed. I can't imagine how much worse your service would become with less competition. If there 10 good carriers, AT&T would have to improve their service and pricing, or go out of business.