AT&T States Data Pricing to Hold Steady, Faces More Competitive Marketplace

Posted by:
Date: Tuesday, June 16th, 2009, 18:05
Category: iPhone

3gs.jpg

Data pricing plans look to hold steady for the iPhone 3G and iPhone 3G S handsets in the near future per an article in the Wall Street Journal. “We’ve been very happy with our pricing,” said AT&T spokesman Mark Segal, who went on to mention the average monthly bill for an iPhone user was within US$90 to US$100. The article went on to suggest that AT&T could charge an additional US$10 to US$40 per month for MMS and tethering featured on the new iPhone 3G S. AT&T is currently facing pressure to offer lower priced data plans by both consumers facing the financial crunch and competitors setting aggressive data pricing.

Last month, AT&T’s wireless chief Ralph de la Vega stated that the company was considering a lower tier of pricing plans. These packages would include limits over the amount of time spent on the Internet or the number of applications that could be wirelessly downloaded.

Sprint Nextel has said its Palm Pre data plans cost US$600 less per year than AT&T, while Verizon wireless offers an unlimited data plan for US$70 per month. AT&T offers a similar plan, charging an additional US$5 for text messages.

AT&T could lose money if it does decrease its data plan pricing, as users commonly purchase unlimited data plans which AT&T then must pay to transfer across the network. The company must also must pay hundreds of dollars in subsidies to Apple in order to maintain iPhone exclusivity. In addition, current upgrades being installed to double the network speed for the iPhone 3G S have raised costs even further for AT&T.

Recent Posts