(This is a bit of a rant)
Yesterday, Apple announced the iPhone 3GS – essentially a hardware speed-boost to last year’s iPhone 3G. More memory, faster processor, better battery life, better camera, video, digital compass, etc… Overall a damn nice looking piece of kit, and a decent, if incremental, upgrade to the existing iPhone 3G.
Also announced was iPhone OS 3.0 – with such features as tethering (IE: using your phone’s ‘net connection to give your computer ‘net access via USB or bluetooth), MMS messaging (multimedia), and more.
AT&T won’t be supporting MMS at launch. Why not? Because they need to manually remove a *block* they put in place to prevent folks who got early copies of 3.0 from using it. That’s right – they intentionally crippled MMS for beta users, and now *all* users have to wait until they get around to re-enabling it.
AT&T was also not amongst the list of carriers supporting tethering (a feature I would get a bit of use out of). It’s been rumored that they will eventually support tethering, but may charge $70/month for it. That’s of course on top of the normal data plan, and the SMS plan, and nearly doubles the monthly price for folks who want to use it. Can you say “gouge”? I knew you could.
Additionally, unlike last year’s iPhone 3G launch, owners of last year’s model won’t be getting the announced price. Instead, an “early upgrade” (which includes a 2-year contract extension) will cost iPhone 3G users $399 for the 16GB model – double the price for new subscribers. If you’re unlucky enough not to qualify for an “early upgrade”, AT&T will charge you $599 for the same phone.
All of this is due to subsidies. The original iPhone wasn’t subsidized at all. The 3G was. So, AT&T’s subsidized phone policy comes into play, which only allows the full discount after 18 months. For example, based on my AT&T account’s page, they will declare me “eligible” for full upgrade pricing ($199) in December. That’s 6 months into the 3GS’ release – or in terms of a yearly hardware cycle, half it’s lifespan. And, were I to upgrade then, I would need to completely miss next year’s hardware upgrade, as I wouldn’t “qualify” for another full year.
What’s even more telling is that cancelling your account and eating the early termination fee ($130), then purchasing an iPhone 3GS as a now-new-customer is *cheaper* by about $70 for existing iPhone 3G owners.
This. Is. Stupid.
AT&T’s 18-month “upgrade” eligibility terms simply don’t mesh with Apple’s yearly hardware refreshes. It’s the flagship phone in AT&T’s fleet, and they’re treating customers like dirt. They’re costing Apple money, in the form of folks like me, who would have considered an upgrade, but now won’t due to AT&T’s terms.
It’s also been rumored that AT&T is right now in negotiations to extend its exclusivity agreement on the iPhone, which ends next year. I can’t imagine that making their existing customers upset is helping their position much.
Apple’s put out the goods. AT&T is failing them. It’s time for Apple to jump ship and find a new partner. In all actuality, finding 2-3 partners would be better. Competition tends to keep companies honest, and puts providing *service* to *customers* at the forefront. That’s likely what needs to happen to pull AT&Ts head out of its behind.
In short – why I won’t be upgrading:
- AT&T won’t support tethering, and may charge outrageous fees for it once they do get around to it
- AT&T won’t support MMS (until they get around to it)
- AT&T treats existing customers like dirt, makes it more affordable to stop being a customer, eat an early termination fee, then re-sign than to simply re-sign.
- Current experience with AT&T’s coverage, particularly 3G, is spotty at best, fails at worst.
- AT&T still charges me double to text my wife, who is on the same family plan. Calling her is free, texting costs 2 texts per message – one for me sending, the other for her receiving.
You’ll note nothing in there deals with Apple’s hardware. While there are things I’d like to have seen (forward-facing camera for video-calling, 4MP or better camera, etc…), it’s a solid upgrade all around, and one I’d likely have been willing to pay for, had AT&T not killed my interest by choosing not to support features I’d use, crippling others, and punishing me because I chose to buy their upgrade last year.
At this point, I’ll wait out this next year (as well as my contract), and perhaps jump ship to a competitor when the exclusivity runs out. I hear Verizon’s coverage around here is pretty good, and their 3G works well. I bet they’ll be willing to cut me a deal too.