AT&T Unveils Pricing Plans for Apple's iPhone 3G

AT&T on Tuesday announced iPhone 3G pricing for new and existing AT&T customers, several voice and data plans, and tips on how to be "iReady" when Apple's iPhone 3G goes on sale. AT&T retail stores will begin offering the new iPhone at 8 a.m. on Friday, July 11.

iPhone 3G will be available for $199 for the 8GB model and $299 for the 16GB model. These prices require two-year contracts and are available to iPhone customers who purchased before July 11, customers activating a new line with AT&T, and current AT&T customers who are eligible for an upgrade discount.

"We can't wait to offer iPhone 3G to our customers, and we want to make sure the buying process is as easy as possible," said Ralph de la Vega, president and CEO of AT&T's wireless unit. "Considering all the great new features of iPhone 3G, we think our pricing and monthly plans present a tremendous value for consumers and businesses alike."

Voice, Data and Text Plans

AT&T's iPhone 3G customers can choose from four AT&T Nation plans, which bundle voice and unlimited data (e-mail and Web browsing). The first plan, dubbed AT&T Nation Unlimited, includes unlimited anytime minutes for $129.99 a month.

AT&T is also offering a Nation 1350 plan that includes 1,350 anytime minutes and unlimited night and weekend minutes for $109.99 a month, a 900-minute plan with free nights and weekends for $89.99 a month, and a 450-minute plan with free nights and weekends for $69.99 a month.

All AT&T Nation and AT&T FamilyTalk plans for iPhone 3G include nationwide long distance and roaming, visual voicemail, rollover, unlimited mobile-to-mobile calling, call forwarding, call waiting, three-way calling and caller ID.

AT&T will offer FamilyTalk plans, with bundled voice and unlimited data, starting at $129.99 a month for two iPhone 3G lines. Up to three additional iPhone lines can be added for $39.99 each. Unlimited text messaging can be added for an additional $20.

Business customers can tap into corporate e-mail and other business applications with the Enterprise Data Plan for iPhone, which is $45 a month bundled with an eligible voice plan. Small businesses may qualify for AT&T BusinessTalk, the industry's only shared plan specifically for small businesses.

Reviewing the Pricing

The pricing model is well within expectations, according to Michael Gartenberg, an analyst at JupiterResearch. It's not the cheapest plan on the market for wireless customers, he said, but these are the only plans customers can officially use with an iPhone.

"You wouldn't expect the iPhone to come in with the cheapest plans or the most value-added or optimized plans," Gartenberg said. "Many consumers are going to look at the trade-off of the plans, and the fact that this is coming in at a much lower price point than perhaps the early adopters paid could be attractive.

Beyond the pricing announcement, AT&T is fueling hype by posting "Get iReady" tips and frequently asked questions on its Web site. The site also will include a link for customers to check their upgrade eligibility and other wireless account information.

"It's not a surprise that it's making this big of a splash. Everything that is iPhone-related tends to make a particularly big splash," Gartenberg said. "Many consumers will take a look at the value proposition relative to everything else that's associated with the iPhone. Consumers will make up their own minds in terms of what makes sense for them despite the hype."