Rumor: AT&T Apparently Outbid Verizon for iPad Data Plan

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Date: Thursday, February 4th, 2010, 07:25
Category: iPad, Rumor


While many were surprised to see AT&T offer a pay-as-you-go option for the recently-released iPad, others were shocked to see a lack of a Verizon option.

Per, AT&T apparently offered a better price on a no-contract plan that sealed the deal.

According to the article, reporter Clayton Morris stated that both companies are “still talking,” despite the fact that Apple went out of its way to defend AT&T last week, and also introduced the wireless carrier as the sole 3G partner for the iPad in the U.S.

Last week, when Apple introduced the iPad, it also announced no-contract data plans from AT&T, running US$15 per month for 250MB of data, or US$30 per month for unlimited access. The plans will also offer free access to AT&T’s nationwide hotspots. Typically, cell phone companies charge US$60 per month for their mobile data-only plans.

As a contract-free purchase, users can buy a 3G-enabled version of the iPad starting at US$629. The AT&T network access can be purchased and later canceled at any time directly from the iPad. Though the device ships unlocked, due to hardware limitations it will only have access to AT&T’s 3G data network in the U.S.

Prior to last week’s iPad unveiling, Apple Chief Operating Officer Tim Cook defended AT&T in his company’s quarterly earnings conference call. He called AT&T a “great partner,” and said most customers have had a positive experience with the carrier.

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One Response to “Rumor: AT&T Apparently Outbid Verizon for iPad Data Plan”

  1. AT&T has its faults, but they don’t deserve the bashing you constantly give them. Our family has had Verizon, and I have had the old AT&T, Cingular, and the current AT&T. If you want to experience bad, you need to have experienced the old AT&T and Cingular in NE Indiana.

    When I got my original iPhone, my 4 teenage girls were totally against changing from Verizon. But change we did, because I had to have the iPhone. We’ve never been sorry. The unlimited texting package for the family is a bargain. I travel from coast to coast with my job and seldom do I have any trouble with phone or data. I had my iPhone 2 years, then upgraded to the 3GS. My iPhone is my travel tool, showing the way with compass and GPS, keeping me up on email, delivering news, storing my contacts, helping me kill time with games, and delivering phone and text. This week I was killing time at a Starbucks in downtown San Francisco, using wifi, thanks to AT&T.

    Something I never hear tech people comment on—my iPhone works anywhere I go. I used it in Thailand when my mother was sick back home in Indiana. I used it on spring break in the Dominican Republic. My daughter took it on a trip to Turkey. You know what my Verizon friends did in the DR? Stared at their screen and keyboard on their Verizon phones and wondered why they didn’t work. It was the same in Mexico.

    I sympathize for you guys in areas with insufficient capacity. I’ve had samples of this. There was no way to use my phone in the full stadium at the Old Oaken Bucket game at Indiana University this fall. If traffic comes to a halt on the interstate in rural Indiana, the closest tower can’t handle the load. But also consider how Verizon management likely reacted to Steve’s original pitch. “Like you’re going to tell us how to configure out network? Get outta here and peddle your flippin’ phone (a little telephony lingo) in Moldova.” AT&T took a risk, which is what makes a good partner. They stepped up to the plate again with the iPad. I’m cutting them a break.