AT&T announces New Data Plans for Smartphone and Tablet
AT&T announced new smartphone data plans with larger data allocations on Wednesday, the first update to AT&T's plans since June of 2010. The new rates will go into effect on Sunday, but only new customers will be affected. Those under contract will keep their current rates. AT&T said that existing customers will never be required to switch to the new rates, even if they upgrade their phones. It will overhaul its smartphone and tablet data plans, starting this Sunday, Jan. 22.
AT&T Inc. is a premier communications holding company. Its subsidiaries and affiliates – AT&T operating companies – are the providers of AT&T services in the United States and around the world. With a powerful array of network resources that includes the nation's fastest mobile broadband network, AT&T is a leading provider of wireless, Wi-Fi, high speed Internet and voice services. The company's previous bottom-tier $15 plan will go up to $20, although the amount of data allocated also goes up to 300 from 200 megabytes. Likewise, the $25, 2 gigabyte plan goes up to a $30, 3GB one. Its high-end $45, 4GB plan--which includes the mobile hot-spot capability--goes up to $50 for 5GB. The new plans start on Sunday. “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.”
Christopher called AT&T's new plans a "great value." Compared to its chief rival, it certainly looks that way. Verizon only offers 2 GB for the same $30 a month and does not have a low-tier offering for smartphone.
Customers are encouraged to keep their device's Wi-Fi turned on because data usage over Wi-Fi does not count against a customer's monthly data plan. As an added value, AT&T smartphone and tablet customers have access at no additional charge to AT&T's 29,000 Wi-Fi hotspots nationwide – the nation's largest Wi-Fi network. AT&T moved cautiously when it first offered a tiered data plan, but since then its $15 offer has been successful at convincing customers to upgrade to smartphone plan. It was the first major carrier to push through the idea of capped data plans at a time when bandwidth and wireless traffic was exploding.
AT&T’s plans are comparatively cheaper than its rival, Verizon. Verizon’s cheapest plan is $30 for 2GB of data--1GB less than AT&T’s $30 plan. AT&T’s decision to offer an inexpensive data plan makes a lot of sense for the carrier. We’ve seen a number of low- and mid-tier smartphone come out on AT&T, like the Pantech Burst for example. AT&T introduced tiered pricing in June 2010 and ended its unlimited data option. The carrier endured a lot of backlash as the data caps seemed unrealistic.
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