iPhone owners who pay $99 a month for an AT&T Wireless unlimited voice plan will soon be able to reduce the cost by $30.

AT&T Wireless announced today that, starting next week, their unlimited voice plan for all smartphones will be lowered by $30 to $69 a month. On Monday, all iPhone users can switch to the lower monthly cost regardless of how much time is left on their 2-year contract.

Even bigger savings are in store for iPhone users on Family plans. According to AT&T, a 2-iPhone Family plan with unlimited voice and unlimited data will now cost $179.99 per month. Previously, an unlimited voice Family Plan cost $199.99 with $30 unlimited data for each iPhone. With that pricing, a 2-iPhone Family plan was $259.97 a month with data. Now, $179.99, a savings of $80.

The price move was made in concert with a similar announcement by Verizon Wireless, who is also offering a $69.99 unlimited voice plan.

From AT&T’s Press Release:

All smartphone customers, including iPhone customers, may now buy unlimited voice and data for $99.99. For smartphone customers with Family Talk plans (prices assume 2 smartphones), unlimited voice and data is now available for $179.99. Texting plans remain unchanged at $20 for unlimited plans for individuals, $30 for Family Talk Plans.

The new pricing could be seen as a strategic move by the carriers to gain more smartphone customers through lowering the overall price barrier. Even with the new lower prices, the monthly cost of owning a smartphone is still much higher than that of “dumb phones.” More smartphones could mean higher revenue stream. The new pricing should entice some smartphone owners to upgrade to the now only slightly more expensive unlimited voice plans.

Adam Savage from the excellent TV show Mythbusters got quite a surprise from AT&T Wireless when he returned home from a trip to Canada: an $11,000 phone bill. What did he do to deserve such a big bill? He surfed the web for a few hours in Canada. And to add insult to injury, AT&T Wireless turned off his service until he paid up.

When he contacted AT&T, they told him he downloaded 9 gigabytes of data while in Canada. Adam, who owns an iPhone 3GS, was using an AT&T modem at the time (not his iPhone). Noting Adam’s complaint to his 50,000 Twitter followers, AT&T contacted Adam about the matter, who ended up posting on Twitter: “Just got off the phone with AT&T and they’ve taken care of everything to my great satisfaction.”

There are plenty of horror stories for International travelers out there who come back from vacation to find they suddenly owe AT&T thousands of dollars. If you just have to take your iPhone, you should switch to an International data plan, even if it’s just for a few weeks. That, or buy a local throw-away phone when you get there.

Sharing the iPhone’s 3G Internet connection with another device, known as tethering, has long been a requested feature for the iPhone. And it’s a long time in coming, as it’s been available for years on competing devices like the Blackberry. So when is the iPhone getting tethering? According to Apple and AT&T, soon.

When Is the iPhone Getting Tethering?

At the iPhone 3.0 Sneak Peak event in March 2009, Apple executives said the ability to tether will be built into the upcoming iPhone 3.0 software due out in late June to early July 2009. Scott Forstall, senior vice president of iPhone Software, said it will be up to AT&T and other phone carriers to turn on tethering for the iPhone:

We’re absolutely supporting tethering in the client side in iPhone 3.0, but we’re working with carriers around the world to see when they can add tethering support on their networks. But we are building that support into iPhone 3.0.

Developers with access to early betas of the iPhone 3.0 software have already stumbled on the “hidden” tethering feature. There are even step-by-step instructions for developers on how to turn on iPhone tethering.

AT&T Wireless & Tethering

Up to this point, AT&T has been pretty tight lipped about tethering and the iPhone. The only evidence that AT&T is considering it for the iPhone is a secondhand account from the blog MobileCrunch stating that in November 2008, AT&T’s Ralph De La Vega, CEO of AT&T Mobility, told the website TechCrunch that consumers will be able to use their iPhone’s as wireless modems sometime in 2009.

Turning on tethering would now be without its obstacles for AT&T. iPhone users already lead the smartphone world in terms of bandwidth usage. In fact, according to T-Mobile of the Netherlands, iPhone users transfer 30-40 times more data than the average smartphone user. iPhone users in the Netherlands average 640mb of data transfer a month.

Previously, AT&T has had problems handling sudden spikes in data usage from iPhone 3Gs on their wireless networks. At the 2009 South By Southwest tech conference, thousands of iPhone users brought AT&T’s network to a halt, forcing AT&T to add more capacity. A tethered laptop would presumably cause more bandwidth to be used and thus put even more of a strain on AT&T’s network.

How Much Will It Cost?

AT&T already offers tethering plans for various PDAs and smartphones, including the Blackberry. Tethering currently costs an extra $30 per month on top of your current data charges (bringing the possible iPhone monthly data charge up to $60, without text messages included).

Unfortunately, tethering also adds a 5gb data transfer limit to your account. The current iPhone/AT&T data package includes unlimited data. Once you run out of the 5gbs, it costs $0.49 per megabyte. You probably won’t be watching many YouTube videos in HD with those kind of data rates.

While tethering may end up being an expensive proposition, it could also be a liberating technology for those stuck behind corporate firewalls and filtering software. The fact that the iPhone could create a walking bubble of personal Internet connectivity is something I look forward to.

AT&T announced at the 2009 Mobile Word Congress their intent to begin testing and building their next generation 4G mobile network, the LTE (Long Term Evolution) network, in 2010 and have it fully ready for consumers in 2011. Downloads on LTE network can reach speeds of 100Mps.

Until then, AT&T is currently testing its HSPA+ network in Chicago. HSPA+ increases the theoretical download speeds of the current 3G HSDPA network from 3.6Mbps to 7.2Mbps. AT&T has claimed HSPA+ can cap out at around 20Mbps, but it’s doubtful a normal consumer would ever see those speeds on a device.

With Qualcomm now selling HSPA+ chipsets for smartphones, it’s possible we’ll see the technology in the next version of the iPhone. Are you ready for faster downloads on your iPhone 3G Pro?

AT&T Wireless has added two more international data plans for the iPhone and now offer travelers a total of four (see chart below to compare). The two new plans are $119.99 for 100 MB and $199.99 for 200 MB per month. The costs are in addition to the original US data plans that iPhone owners already pay for.

The AT&T iPhone international data plans cover an initial 65 countries (AT&T has coverage in 200 countries). The cost of data outside of those 65 countries is on a per kilobyte basis (see chart below). A list of the included 65 countries is after the break.

While the international data plan prices are still exorbitant for most people, they are at least a step up from previous prices and may seem more reasonable to business travelers who expense these costs anyways. In the past, 200 MB would have cost travelers a total of $827.90 ($59.99 for an initial 50MB plus $768 for the extra 150MB).

Note: 1 megabyte (MB) = 1024 kilobytes (kb).

Helpful Links:

AT&T International Roaming Data Plans

List of 65 countries covered with international iPhone plan and type of network

iPhone Travel Tips from AT&T

Countries Included:

• ANGUILLA
• ANTIGUA and BARBUDA
• ARUBA
• AUSTRALIA
• AUSTRIA
• BAHAMAS
• BARBADOS
• BELGIUM
• BERMUDA
• BRITISH VIRGIN ISLANDS
• CANADA
• CAYMAN ISLANDS
• CHILE
• CHINA
• COLOMBIA
• CZECH-REPUBLIC
• DENMARK
• DOMINICA
• ECUADOR
• EGYPT
• EL SALVADOR
• FRANCE
• FRENCH GUIANA
• GERMANY
• GREAT BRITAIN(United Kingdom)
• GREECE
• GRENADA
• GUADALOUPE
• GUAM
• GUATEMALA
• HAITI
• HONG KONG
• HUNGARY
• INDIA
• IRELAND
• ISRAEL
• ITALY
• JAMAICA
• JAPAN
• LUXEMBOURG
• MARTINIQUE
• MEXICO
• MONACO
• MONTSERRAT
• NETHERLANDS
• NETHERLANDS ANTILLES (includes Curacao)
• NEW ZEALAND
• NORWAY
• POLAND
• PORTUGAL
• ROMANIA
• SAN MARINO
• SINGAPORE
• SLOVAKIA
• SOUTH KOREA
• SPAIN
• ST. KITTS and NEVIS
• ST. LUCIA
• ST. MARTIN
• ST. VINCENT and the GRENADINES
• SWEDEN
• SWITZERLAND
• TAIWAN
• TRINIDAD and TOBAGO
• TURKS and CAICOS
• VATICAN CITY

Image via Mactropolis.

AT&T Wireless has finally gotten around to posting official pricing information about the iPhone 3G. Of particular note is a “coming soon” announcement of a contract-free iPhone 3G for $599 for the 8 gb and $699 for the 16 gb.

For those interested in buying an iPhone 3G for unlocking and use on another wireless network, some crucial terms of the process are still unclear. It’s possible AT&T will require buyers of unsubsidized iPhone 3Gs to activate phone service with AT&T in order to purchase the phone. This could put a damper on the very profitable unlocking business, but not completely destroy it.

*Update* iLounge has confirmed that current iPhone users do qualify for the subsidized pricing, regardless of how long they’ve been on contract. Via iLounge:

According to Mark Siegel, Executive Director of Media Relations with AT&T Mobility, only “[c]urrent iPhone customers, new customers, and current non-iPhone AT&T wireless customers who are upgrade eligible will get the iPhone 3G at the $199/$299 price points.”

Here are AT&T’s current rules to qualify as “upgrade eligible” (for AT&T customers who don’t own an iPhone):

• 24 months of cell service since the activation of your current phone, or
• 24 months of cell service since your last upgrade.

Or,

• 21 months of cell service with contract but no upgrades, and have a data plan and standard voice plan that costs between $68.99 or $98.99 a month, or
• 12 months of cell service and pay more than $99 a month for data and standard voice plan.

If you pay less than $68.99 month, you have to wait until month 21 of your contract to get the upgrade pricing, and you have to pay an undisclosed fee (rumored to be around $20).

Helpful Links:

Wirefly.com details AT&T Upgrades.

iLounge “Not all AT&T customers eligible for $199 iPhone 3G.”

• The iPhone 3G data plan costs $30 a month for unlimited data. That $30 does not include text messages or a voice plan. The voice plans start at $39.99 for 450 minutes of talk time.
• Requires a two-year contract.
• Text messages usually cost 20 cents a piece, or $5.00 for 200, but there is no official word yet on what they will cost for iPhone 3G.
• Subsidized pricing is $199 for 8 gb iPhone. $299 for a 16 gb iPhone.
• With all costs added together, the minimum monthly cost of iPhone 3G is $69.99 (without text messages).


• The total 2-year cost of an iPhone 3G starts at $1,855, compared with $1,815 of the original iPhone.
• The iPhone 3G will require activation at the store you buy it from, either AT&T’s store or an Apple store. The process usually takes around 15 minutes to complete.
• AT&T will not allow tethering of the iPhone’s 3G connection, meaning, you can’t use the iPhone 3G as a broadband modem for your laptop. Some other AT&T smartphones offer this utility.
• Business data plans start at $45 a month. The higher charge is because AT&T offers an “enterprise connection” to Exchange servers.
• For international travelers, a separate international data plan will be required.
• There is no GoPhone, prepaid plan, or pay-as-you-go plan for the iPhone 3G.
• 3G iPhone with no contract: $599 for 8GB and $699 for 16GB.
• You can return the iPhone up to 30 days after date of purchase.
• First-gen iPhone customers who already have two-year contracts have to qualify for an AT&T Upgrade and have good standing with AT&T (ie, have you paid your bills lately?).
• Limit of 3 iPhones per purchase.
• Anyone who bought a first-gen iPhone on of after May 28, 2008, can return it and receive a refund of the difference in price between a comparable iPhone 3G, minus a 10% restocking fee.
• Access to GPS is free.

The first is to check if AT&T Wireless’s 3G network is accessible in your area. There’s no use preparing for something you can’t use. Most metropolitan areas are covered, but if you live out in the boonies, you may currently be out of luck. To check your area, travel on over to AT&T’s coverage map. You’ll see a link at the bottom that says “View 3G/Mobile Broadband coverage (in select areas).” This will bring up a list of cities sorted by state. Click on your city and a heat map will appear showing strength-of-signal coverage.

If you are going to replace the previous version of the iPhone, it may be time to plan what to do with the old one. You could give it as a gift to a loved one or keep it as a backup phone. You could jailbreak it and use it as the world’s coolest Skype phone (note: you may soon be able to do this officially soon thanks to the SDK). Or, you could sell it on eBay. There are used iPhones going for around $300 on eBay right now (but probably less once the new version comes out).

You could also prepare yourself spiritually for the 3G iPhone. Fasting will clear your mind in preparation for fighting the ADD that faster 3G speeds will surely bring. It will also save tons of money on food, which, in turn, will help you afford the iPhone and its, perhaps, more expensive data plan.

If you have any ideas on how to prepare for the iPhone, leave them in the comments section.

Links:

MacWorld’s no-so-glowing review of Fring (Skype app for jailbroken iPhones).

Will the 3G iPhone’s Data Plan Cost More?

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The current data plan for the iPhone costs $20 for unlimited data. Will the iPhone’s 3G broadband access cost more? There may be some clues in what AT&T charges for their current line of 3G smartphones.

AT&T’s PDA Bundles featuring 3G access.

For their current range of 3G phones (AT&T calls them PDA bundles), AT&T charges $30 for unlimited data over their 3G and/or EDGE networks; $50 for unlimited data and unlimited messages; and $60 for a tethered package, which means you can use your 3G/EDGE connectivity for your phone and your laptop, but you’re limited to 5 GB of bandwidth. However, other carriers have begun offering a tethered package with unlimited bandwidth for $100 a month, so AT&T could just as easily fall into step.

At $20 a month, the current iPhone’s data plan enjoys a special price separate from AT&T’s other line of phones. But what’s interesting is that the data plan is not defined by data coming over the EDGE network, ie, it’s not called an EDGE network plan, it’s simply called a “data plan.”

However, with 3G’s faster speeds, people will be using more bandwidth, and AT&T would be incurring higher costs.

It may not be out of the realm of possibility that the data plan price would stay the same for 3G access. I just wouldn’t bet on it.

Link to AT&T’s current 3G data plans.