AT&T to require smartphone users to buy a data plan


AT&T has done it again and made me, and thousands of others, hate their company even more. I’ve been on AT&T since the Razr V3, then the iPhone 3G, and now the 3GS. However, I’ve grown tired of AT&T and their antics. Their terrible coverage and, dare I say, slow 3G speeds have crippled the hot new devices coming to the carrier. Two year contracts and poor customer service have also played into the crude image of AT&T. But now, they have really made me upset: starting September 6th, all customers who purchase smartphones must also purchase a data plan.

AT&T defends their decision by saying Smartphone users are surprised when they are charged outrageous amount per bit and requiring a data plan will helps users keep their costs down. Perhaps if AT&T’s sales staff accurately portrayed the hefty price they charge for data customers wouldn’t suffer “bill shock”. I mean, Blackberry/Smartphone data plans start at $35 a month, from what I can see on the AT&T website.

Another thing to keep in mind is how current customers will be grandfathered into the new policy. If you purchase a smart phone before September 6th you can continue to use your phone without a data plan. However, if you have a feature phone with a current Medianet data plan and you decide to upgrade to a smartphone, you will fall under this new policy and will be required to purchase a new, more expensive, data plan. Even users who currently have a dirt cheap phone will be required to purchase a data plan if they decide to upgrade to a smartphone on or after September 6th.

The one positive note comes in the form of the GSM spec. Because GSM phones use sim cards, users can continue to take their current SIM and use it with a new phone. So if you are currently using a normal phone you can take your SIM, put it into an unlocked GSM smartphone, and use the smartphone without a data plan or a lower cost medianet plan. Of course, unlocked smartphones are expensive, being as they aren’t subsidized at all, but it’s an option for those who don’t want the cost of a data plan. If you do the math, you can determine if buying an unlocked phone is cheaper than a subsidized phone with a required data plan.

Here is the internal memo that has been circulating the web confirming this information:

Beginning September 6, 2009, customers who activate or upgrade to a Smartphone will need to sign up for an appropriate data plan. Existing Smartphone customers active prior to September 6, 2009 will be grandfathered and exempt from the new policy.

Why we are making this change?
We want our customers to have the best possible experience with their Smartphones. A predictable bill is a key factor in customer satisfaction, so effective September 6, 2009 Smartphone customers will need to subscribe to a data plan, as the vast majority of customers already do. Data plans let customers fully utilize their device, without the worry of bill shock.

How we will ensure an extraordinary customer experience?
The sales representative is the customer’s expert resource in helping select the right device for their needs. When a customer does not want a data plan, we will position other devices in our industry leading portfolio for the customer to choose from, as many devices do not require a data plan.

Action Required:
Sales Managers will review the Know the Facts, Job Aid, and FAQs (found under Related Links) with their sales teams and ensure all sales representatives fully understand the new policy and how to position the Smartphone data requirement to customers. A Sales Coaching Session will be available on September 5, 2009 (document to be distributed in advance).

This news was originally reported by BGR.

6 Comments

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It is a bummer. Before getting the 3GS I had a Nokia N95 8GB. I could automatically tether to my Mac and get online with no troubles. Then comes the iPhone 3GS with the “new plan” I had to get. Now I pay more and it is harder than ever to get online with the iPhone. From now on I will only buy unlocked phones. I was going to get the N97 but Nokia’s Ovi Store changed my mind. I do like my iPhone but my service provider is starting to get under my skin. Thanks for the post and keep up the good work. Joel

Welcome to Canada. That’s how it works here. Seriously, anything that sucks about mobility service in the US, we have it ten times as bad. We get screwed badly.

Judging from the tone of your complaints regarding AT&T, I wanted to add that for those people who are tired of constantly being overcharged by cell companies via surcharges and gimmicks, there can be relief. I work for the consumer advocacy division of the company Validas, where we electronically audit and subsequently reduce the average cell bill by 22 percent through our website, http://www.fixmycellbill.com. Put simply, Validas guards against frivolous and unnecessary charges that inflate your cell bill more than it should be for your usage. You can find out for free if fixmycellbill.com can modify your plan to better suit your needs by going to the website.

For more info, check out Validas in the media, most recently on Fox News at http://www.myfoxtampabay.com/dpp/consumer/conlaw/lower_cell_phone_bills_072409.

Good luck to everyone reading on cutting your wireless costs.

Dylan
Consumer Advocacy, fixmycellbill.com

I used to work for Cellular One, then ATT then Cingular then ATT Cingular. All these requisitions to include the competitors has lead to one word…..Monopoly…. All the carriers doing the same thing to rip people off. T mobile is actually owned by the major cellular companies to promote the prepaid plans and certain regions of their reception limits to include cricket and all the other cheap services. There is only 2 major companies now verizon who owns several other networks and ATT. Sprint is a smaller company with poor reception who now owns Nexttell. There is no solution to the high data charges with any company. They can do whatever they want until the government chose to pass laws governing big business.