My Digital Life

AT&T Clarifies iPhone Pricing, but is Currently not Budging on Subsidy

It amazes me the amount of complainers there are out there regarding AT&T and Apple's subsidy pricing. When individuals purchased an iPhone 3G last year, they agreed to a two year commitment in exchange for a subsidy to cover the full cost of the iPhone. Now mid way through their commitment they want AT&T and Apple to give them the full subsidy again. Yes that would be nice, but large corporation are seldom nice and when you signed that contract you knew what you were getting into. All this whining sounds like spoiled milk. I am not alone here Gizmodo, Technologizer, and TechCrunch seem to have the same if not stronger opinions of the whiners.

I think people should complain about AT&T network quality, I find that to be a bigger issue than pricing and I think it is really starting to make Apple look bad.

Here is the official pricing chart from AT&T:

		iPhone 3G S	iPhone 3G
New and Qualifying Customers**		$199 (16GB) and $299 (32GB)	$99 (8GB) and $149 (16GB*)
Early Upgrade Price		$399 (16GB) and $499 (32GB)	$299 (8GB) and $349 (16GB*)
No-Commitment		$599 (16GB) and $699 (32GB)	$499 (8GB) and $549 (16GB*)

* While supplies last
**Qualifying customers are those that qualify for an upgrade. Upgrade eligibility varies with each customer but in general you will become eligible the longer the tenure in your service agreement. Visit www.att.com/iPhone to determine if you qualify for an upgrade.
Note: Voice and data plans are required for all devices.

From what I understand, in most cases you must wait 18 months before getting the full subsidy pricing, but the confusions comes with some accounts which can get the full subsidy in 12 months; nobody, even AT&T reps, seem to have a handle on the rules regarding this.

I went ahead and pre-ordered at the early upgrade price, I am not that happy but I knew what I was getting into when I signed the contract for the iPhone 3G. We will all probably be sitting at the same place next year, but hopefully by then the coverage in my house will be better (cell site currently being installed in my neighborhood) and I will have switched my wife to AT&T giving me an avenue to use a full upgrade subsidy since she won't need a handset subsidy...

What does the iPhone 3G S Offer Us?

I am still trying to figure out how to write the g and s after 3 since Apple places the s in a box after a capitalized S, however if you hover over the logo, the tool tip shows iPhone 3gs. Most news organizations are using 3G (space) S, which is it Apple?

Clip from Apple web site.

Anyway back to the topic at hand. The key improvement to the iPhone is really the new OS 3.0 functionality. Some of that functionality is only available on the 3G S because of the required hardware. Here is the list of 3G S only functionality:

• 3MP camera with auto focus and video recording
• 2X times faster
• Voice control
• Compass

Everyone with an older iPhone 3G and 2G will get these key features:

• Cut, copy and paste
• MMS
• Spotlight search
• Landscape keyboard
• Voice memos

On the Exchange front iPhone OS 3.0 will include the ability:

• Invite others to appointments
• Search through emails

   

On the battery front, there is some improvement. Here is Apple comparison of max times between the 3G S and 3G:

 

• Talk time: 5 hours on a 3G network for both, 12 hours for the 3G S vs. 10 hours for the 3G on a 2G network
• Standby time: 300 hours for both
• Internet use: 5 hours on a 3G network for both, 9 hours for the 3 G S vs. 6 hours for the 3G on a WIFI network
• Audio playback: 30 hours on the 3G S and 24 hours on the 3G
• Video playback: 10 hours on the 3G S and 7 hours on the 3G

Why upgrade to a 3G S (my list in preference order):

1. Faster processor
2. Better GPS functionality enabling precise turn by turn navigation
3. 3MP camera with video
4. 32GB of storage
5. Voice control
6. Access to the volume control on the Apple in ear headset
7. Somewhat better battery performance
8. 7.2 Mpbs 3G network, although AT&T won't have that upgrade completed until 2011
9. Having the latest and greatest

If I was a 2G owner, upgrading to the 3G S would be a no brainer, especially if I was in the lower upgrade pricing zone of my contract. If you are, as I am a 3G owner, then the decision is harder because most of us are probably still in year 1 of the contract meaning that the upgrade pricing is essentially the list price of $399 (16GB) and $499 (32GB), but if you are a heavy user or you need turn by turn GPS then it probably makes sense. I decided to take the plunge and pre order a 32GB 3G S from AT&T. The confirmation page said they were going to attempt (key word) to deliver the units on the 19^th via FedEx, if you ordered by the 17^th 12 noon Central Time. We will see how well AT&T is able to meet that criterion.

http://wireless.att.com/iphone

WWDC Keynote over, what do we have?

From my rumor list:

• Subtle changes to its external design Yes
• A 600MHZ processor No specification discussed but 2 times faster claim by Apple
• 256MB of RAM (vs. 128MB today) Not discussed
• An improved camera (I have heard 3.2MP) Yes, 3MP with auto focus and 30fps video
• A magnetometer for the electronic compass Yes
• 16 and 32GB of storage Yes, $199 and $299 (2 yr commitment)
• Potentially improved battery life Yes, Up to 9 hours Internet surfing on WiFi. 10 hours video playback, 30 hours of audio, up to 12 hours of 2G talk time and 5 hours of 3G talk time.

Additional noteworthy information discussed:

• iPhone 3Gs supports HSDPA to 7.2Mbps
• There will be no tethering for AT&T customers
• iPhone 3Gs supports Nike +
• MMS support will be available to AT&T customers later this summer
• 8GB iPhone 3G will sell for $99 (2 yr commitment)

The bottom line is that the iPhone 3Gs hardware is evolutionary; on the other hand the 3.0 software upgrade is the big news here since it implements a lot of features which were previously available on Windows Mobile.

The iPhone 3Gs will be available on June 19^th (AT&T customer pre-orders available @5PM ET today), the iPhone OS 3.0 upgrade will be available June 17^th.

Oh, and no Steve Jobs to be seen…

Apple’s WWDC is upon Us Today

Will it be Tim Cook (Apple's CEO) or Steve Jobs which takes the stage today to announce the 3^rd generation of the iPhone and the release of the iPhone OS version 3.0? That is part of the orchestrated mystery around the keynote today and the hundreds of media outlets which provide live details starting at 1PM Eastern Time, but no official live video stream. I will probably just follow MacRumors Twitter stream.

The last minute rumor mill is in full gear this morning but the most reasonable list of announcements I think comes from John Gruber at Daring Fireball with the following highlights:

• Subtle changes to its external design
• A 600MHZ processor
• 256MB of RAM (vs. 128MB today)
• An improved camera (I have heard 3.2MP) with auto focus and video
• A magnetometer for the electronic compass
• 16 and 32GB of storage
• Potentially improved battery life

All of this for $199 (16GB) and $299 (32GB) models. We will also be waiting for announcements from AT&T on a reduced capped data plan and a tethering option.

It is time to go update iTunes to 8.2 so I am ready to update to iPhone OS 3.0….

iPhone rumors are in high gear two weeks before Apple’s conference

I had started blogging about Apple Insider reports that Landon Fuller, a security expert, has demonstrated a proof of concept using a Java application which could allow hackers to potentially run system level commands in Mac OS X. What, a vulnerability, unpatched by Apple, in Mac OS X. What is the world coming to…but I thought iPhone rumors were far more interesting. John Gruber from Daring Fireball uses his words carefully and has usually been correct when he addresses future iPhone functionality.

His take is that the new iPhone will feature:

• subtle changes to its external design
• a 600MHZ processor
• 256MB of RAM (vs. 128MB today)
• an improved camera (I have heard 3.2MP) with auto focus and video
• a magnetometer for the electronic compass
• 16 and 32GB of storage
• potentially improved battery life

All this for $199 (16GB) and $299 (32GB) models. It will also be interesting to see what AT&T does on the data plan front with a capped plan for $20 per month.

I will update this post during Apple World Wide Developer Conference to see how well he faired…

AT&T 3G network not good enough for iPhone SlingPlayer

The saga of bringing SlingPlayer to the iPhone has been a real soap opera, but the release of the application even though crippled by the lack of 3G functionality is still a milestone. Sling Media confirmed it was building a SlingPlayer for the iPhone last March, a year later they submitted the application to Apple. Since then it seems that AT&T, Apple and Sling Media have been in a tussle over whether to allow the Sling Player to stream over the 3G network. AT&T even modified its Terms of Service to block Sling Player type applications to use its network, and then rescinded the change. Last week they reinstated the ban on with this language: "Applications like this, which redirect a TV signal to a personal computer, are specifically prohibited under our terms of service". They equate the iPhone to a personal computer.

With the release of SlingPlayer, according to engadget, last night AT&T felt compelled to issue a statement on the subject (I could not find the official statement), but engadget published this:

"Slingbox, which would use large amounts of wireless network capacity, could create congestion and potentially prevent other customers from using the network. The application does not run on our 3G wireless network. Applications like this, which redirect a TV signal to a personal computer, are specifically prohibited under our terms of service. We consider smartphones like the iPhone to be personal computers in that they have the same hardware and software attributes as PCs.

That said, we don't restrict users from going to a Web site that lets them view videos. But what our terms and conditions prohibit is the transferring, or slinging, of a TV signal to their personal computer or smartphone.

The Slingbox application for the iPhone runs on WiFi. That's good news for AT&T's iPhone 3G customers, who get free WiFi access at our 20,000 owned and operated hot spots in the U.S., including Starbucks, McDonalds, Barnes & Noble, hotels, and airports. AT&T is the industry leader in WiFi."

It almost sounds like AT&T is apologizing for the inability of its network to handle the potential load. You could view this as a brave move on their part, essentially admitting to capacity weaknesses in their network and it the end saving them from more network performance issues which have plagued them since the release of the iPhone. Maybe Verizon should promote the fact that their Terms of Service does not block this functionality; under their Permitted Uses section they state that "(iv) uploading, downloading and streaming of audio, video and games;" is permitted.

As everyone in the blogosphere is pointing it out, there is no mention that the 3G functionality is available on the version of SlingPlayer for Windows Mobile and Blackberry devices, although I think the Terms of Service also covers those devices, so I guess I can longer use my Windows Mobile SlingPlayer on their 3G network.

Although the SlingPlayer for iPhone lack 3G connectivity, it is priced at $29.99 in the App Store the same price as for other mobile platform with 3G support. I went ahead and purchased it and I have to say that the user interface is pretty cool. Hopefully with their planned network upgrades, AT&T will allow 3G functionally sometime in the near future.

Watching the Today Show on my Directv DVR.

Apple/Verizon rumor mill; will the Hub be replaced by the Apple media pad?

On the heels of USA Today's updated article about Apple's discussions with Verizon; Business Week reported yesterday that Apple is considering an iPhone Lite and some type of media pad targeted for Verizon. The iPhone Lite, a smaller and thinner iPhone has been reported before and there has been rampant speculation about a netbook type device, although it is clear that Apple wants to create a new category of product. The media pad would let users listen to music, view photos, and watch high-definition videos, a well as make calls via WiFi.

The media pad with calling over WiFi feature (VOIP) is the most interesting part of the story. Currently Verizon Wireless sells the Hub, a desktop WIFI enabled VOIP smartphone tagged as "the Home Phone Reinvented". The Hub is manufactured by OPENPEAK and based on Linux. The Hub allows you to listen to streaming music, view photos, and watch V Cast videos. It also comes with a basic set of applications like Calendar, Contacts and text/multimedia messaging. Although the call quality and design of the Hub are excellent, it lacks a catalog of applications. A device from Apple which would support the iTunes and the App Store could be a real game changer. The big question; is Verizon brave enough to loosen its control over its network? Possibly, after seeing AT&T success…

I have been reviewing the Hub and will be publishing my results later this week on pocketnow.com.

iPhone helps AT&T and Apple weather the economy

Apple sold 3.8 million iPhones last quarter in 81 countries; 1.6 million of those were activated on the AT&T wireless network. Approximately 640,000 of those were new AT&T customers. Those are great numbers but not as impressive as the total combined iPhone/Touch count of 37 millions. In March Apple announced that they had reached the 30 million mark at the end of December 2008, which means they sold 3.2 million Touch in the first quarter and through March 30, 2009 have sold 20.8 million iPhones and 16.2 million Touch.

Even though the Touch is not a phone, it is a email/internet capable mobile computing device. If you include the Touch in a Windows Mobile/Blackberry comparison, the iPhone OS platform leaves Windows Mobile in the dust and it is fast on the heels of the Blackberry. As Apple has dominated the mobile Music Player world, it looks like they are on track to dominate the mobile email/internet mobile computing device marketplace.

With comments from Verizon and AT&T lately, it is also clear that sooner or later a bidding war may erupt for exclusivity once the current contract with AT&T is up, Verizon has their 4^th generation LTE network is running, and Apple delivers an LTE capable device. I would love to see an iPhone LTE device available on both networks. This would let AT&T go head to head with Verizon on network coverage and performance, but I am afraid Apple won't be able to refuse the cash incentives.

Verizon Communications Inc. CEO Ivan Seidenberg says iPhone possible with 4G LTE network

I have never been a big fan of CDMA, not because of the technology but because it is not the de facto world standard for cellular communications; that title goes to GSM. Apple chose GSM for the iPhone for a variety of reasons; probably the most important one was the potential worldwide market place. The last time I checked there where less than a third the number of CDMA subscribers compared to GSM.

As I posted previously about the move towards 4^th generation networks, I applauded Verizon's and AT&T decision to move towards a common world standard; Long Term Evolution (LTE). Last week we had two interesting stories concerning the future of the iPhone which will be affected by the move towards this standard; the possibility of the iPhone running on both the Verizon and AT&T networks.

From an article in the Wall Street Journal:

"Mr. Seidenberg also addressed the notion of Apple Inc.'s iPhone ever coming to the Verizon Wireless network, saying it is more likely that Apple would be willing to work with the carrier under the fourth-generation, or 4G, network, which follows the same technology standard as AT&T Inc.'s 4G plans. He said Apple never seriously considered making a CDMA version of the iPhone because it didn't have as wide a distribution opportunity."

With the iPhone's clear popularity, one of the benefits of moving to LTE is the possibility for Verizon to bid on the iPhone. AT&T is definitely concerned about losing its exclusivity and it has been widely reported that they are pushing to have the contract with Apple extended beyond 2010.

This really puts Apple in the driver's seat and we can start having a apples to apples debate about which network is really better…

So far 2009 has been positive for terms of service language rollbacks

It seems that the potential PR backlash in an uncertain economy has made certain companies blink when it comes to changes they made to their terms of service. The uproar in the blogosphere against Facebook's change to control ownership of content quickly became national news, several days went by, but Facebook flinched describing it all as a misunderstanding.

Last week AT&T tried to insert language into its wireless data terms of service that would have made using one's Sling player a breach of contract. This was very strange considering the imminent release of a Sling player for the iPhone, and considering that you have been able to use the Windows Mobile version of Sling player for many years. Again, the blogosphere went into high gear. I don't even think it made to the mainstream media before AT&T retracted the language.

Score 2 for the Consumer! I Know that there are probably a lot a cases like Verizon's 30 day return policy where the consumer has lost, but it is refreshing the hear that some companies like AT&T are willing to retract changes that don't make sense for the consumer.