Let AT&T hear your voice now, not later: we want an inexpensive iPhone tethering option!
As we’ve previously reported, AT&T is currently turning a blind eye towards iPhone users with the 3.0 software update modifying their phone to allow broadband data tethering at no extra charge (so far).
Late last week, there were rumors swirling that when AT&T does plan to offer the tethering option legitimately to its customers, the fee for the privilege may be “around $55.” Many people have sensibly pointed out that may be the charge including the current $30/line data charge that AT&T assesses for the iPhone (in addition to voice and text plans!), making the prospective tethering charge a $25 add on per month for a total of $55 in data charges. AT&T itself has come out quickly via social networking sites and said these rumors are erroneous.
But, let’s get ahead of them and make our voices heard while they are still deciding what to charge. Remember: AT&T is a company that is already the beneficiary of a monopolistic relationship with Apple that allows it to charge the highest smartphone plan rates by far and provides less than stellar voice quality across its network with dropped calls being the #1 complaint of iPhone users throughout the two years the device has been available. Hell, even T-Mobile provides better iPhone support than AT&T, and they don’t even sell the phone.
So instead of waiting until after AT&T announces the rates for tethering, let’s make our voices heard: $55 for tethering in addition to the current data fee is of course ridiculous. Even $25 a month is egregious when you consider that our neighbors to the north have been able to tether their iPhones for FREE, at least through 2010, since the day the 3.0 software came out. In Great Britain, O2 charges approximately $25 per month for 3GB of tethering data for its consumer plans and approximately $17 for its business customers, with many more options for those that will be using more data.
Let’s not forget how important the iPhone monopoly is to AT&T, according to this April article from the Wall Street Journal:
AT&T weathered the increasingly competitive environment in wireless, adding 1.2 million net new cellphone subscribers, bringing its total customer base to 78.2 million. Apple Inc.’s iPhone continued to boost those results, as AT&T activated 1.6 million iPhone accounts in the quarter.
Selling iPhones is costly for AT&T, because the Dallas carrier discounts the device heavily. But it is now reaping the gains from the higher-than-average spending iPhone customers do on Internet and data services. That revenue helped AT&T generate a 41% wireless operating income margin before depreciation and amortization, up from 36% in the previous quarter.
“As those iPhone customers get on the network and generate revenue, that should provide further lift to margins in the balance of the year,” said William Power, an analyst at Robert W. Baird & Co.
So what’s a fair price? Look, we’re not idiots. We know iPhone users use more data than any other phone customer AT&T has. We know they’re investing about $18 billion a year in network upgrades to support more and faster data. We’re under no illusions that AT&T is going to allow customers to enhance the functionality of the iPhone’s use of their network for free. But we don’t want to be gouged: we think a reasonable add-on price is $20 per month, for a total data charge of $50 for those that choose to use the tethering option, in addition to the $70-100 people pay in addition to that for voice and messaging.
If you agree, how can you easily make your voice heard? Here are a few quick options that will reach the the upper levels, if not the top level, of AT&T’s massive customer service apparatus:
Email AT&T’s leadership: These are email addresses of the CEO of AT&T, President of AT&T Wireless, Senior Vice President of Operations, and VP of Operations, respectively. While they’ll probably be answered by customer service personnel, it can’t hurt to try: randall.stephenson@att.comralph.vega@att.com, john.stankey@att.com, james.callaway@att.com
Call AT&T’s leadership: This is the number for the CEO’s office: 800-283-6407. These are the executive customer service numbers. Give them a quick polite call and ask them to pass along your message: eastern States: 877-707-6220 western States: 800-498-1912.
Twitter: AT&T’s two main Twitter usernames are ShareATT and ATTNews. The latter has 9,000 followers, but the former seems to be the one that’s more user feedback oriented. Send them a tweet using your own wording asking for reasonable prices and the hashtag #iphonetether!
Facebook: Of course, they’ve got a huge Facebook presence as well and a billion other social media options if you want to make use of those.
Two more closing points: first, don’t be looking for any favors elsewhere in AT&T’s pricing, according to this article last week:
AT&T spokesman Mark Siegel told Dow Jones that there are no plans to alter the company’s data prices when the iPhone 3G S goes on sale next Friday. Siegel: “We’ve been very happy with our pricing.” And, why wouldn’t they? The average monthly bill for an iPhone user is in the mid-$90 range.
So it becomes more important to make your voice heard now about new fees. Last, consider that Congress is also starting to investigate the exclusive deals between handset makers and carriers, such as the iPhone/AT&T linkup. So even if we have to suffer under the monopoly of one provider reaping huge profits off a truly groundbreaking device they didn’t even engineer, hopefully through action from Congress or via Apple allowing more carriers in on the iPhone next year, competition will one day serve to put the customer first and lower prices for all.
If you get a response from AT&T, please share it in the comments below. Please feel free to share this post via Twitter, Digg, Reddit, etc. etc.
Filed under: iPhone News
I have an alternate theory where an increase of people expressing any kind of interest in tethering will only add to ATT’s justification for keeping the price high.
This was sent to the emails addresses listed in the article:
I have come over to AT&T from T-Mobile because of the iPhone, as many others have. I was willing to pay the premium price of $20/mo and now $30/mo for unlimited data.
However with T-Mobile, I was able to use my cell phone as a tethering device for my laptop at $20/mo. Grant it, the cost was for a slower network than 3G, but the pricing was still the same as AT&T’s EDGE fees.
If you want people, including myself, to jump on this extended option, you really need to keep the fees low. Otherwise you will risk keeping your subscriber count lower than it could be and you will also risk alienating your customers even further than many of them feel now.
This deal you have with Apple is great for you right now. However, the more the perception grows that customers are being taken advantage of via this monopoly, the more likely they are to drop any brand loyalties to you and jump ship the second you lose this exclusive deal with Apple. Do right by your customers NOW, and you will reap the benefits later. Dont be so short-sighted on your decisions.
Yes, AT&T’s prices are way too high. I bet you anything they’ll want extra money for it. There was an app. last summer (I think) that tethered, but Apple pulled it within a day. Unfortunately I didn’t hear about it until then.
Simple: Vote with your $$$.
If AT&T does not drop their rates (which I believe already are way too high), then I will switch to another vendor whenever they first day that I can. The average iPhone user, like me, gets much of his/her web usage from wifi (home, business, etc.) and this places a lesser load on their network.
AT&T Are you listening? Don’t kill the goose that laid the golden egg.