The changes below take effect on Sunday, January 22.   If you sign up with AT&T prior to that date, you will be grandfathered into the current pricing.    Use the MyRatePlan smartphone data calculator to find your best data plan across the 4 national carriers.

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AT&T is launching new smartphone data plans as outlined in the table below:

For those interested in tethering, it is included in the $50 plan (total 5GB allowance). Previously, tethering was a $20 add-on (with 2GB additional allowance) on the $25 data plan.

These new plans are also valid for new tablet customers.   The existing $14.99 tablet plan for 250MB will remain available.

MyRatePlan Analysis:  Although AT&T is spinning this as ‘more data, more value’, it is clearly a price increase for most customers.  The minimum price for a monthly smartphone rate plan increases to $59.99 ($39.99 for 450 minutes + $20 data) from $54.99.   For all but the lightest consumers of data, the $30 plan will be the plan of choice.

• For those using between 3 and 5GB per month who are  not interested in tethering, it doesn’t look like the $50 for 5GB plan offers any benefit over the $30 for 3GB plan.
• The only existing customers who might want to consider switching to these plans are those that use more than 2GB per month.  For those, the new rates actually represent a $5 decrease for the same allowance of data.   However, since the baseline commitment goes to $30 from $25, some of that savings is lost if not using more than 2GB on a regular basis.

To see current AT&T rate plans and cell phones, visit our AT&T carrier page.

In a move that will eventually be copied (in some form) by other wireless (and possibly home broadband) providers, AT&T has moved to a tiered, usage-based data pricing for its smartphone devices.

The previous smartphone/iPhone/BlackBerry data plan, at $30 month, was for unlimited usage.   Going forward (current customers are not required to switch), purchasers of the will be able to choose a 200 MB DataPlus plan for $15/month or 2 GB for $25/month.   Those on the lower-priced plan who exceed their bucket will be charged $15 for an additional 200 MB.  Those exceeding the bucket on the higher plan will receive an additional 1 GB of data for $10. All plans include unlimited AT&T Hot Spot access on Wi-Fi capable devices.

MyRatePlan Comments

• For light users of data (emails with no attachments, web browsing), there is an opportunity to save up to 50% on the prior cost of smartphone data.   (AT&T claims 65% of its smartphone subscribers fall into this category).   Since all other national carriers have a required smartphone data plan of about $30, AT&T may have an opportunity to poach some of those customers
• At the same time, by grandfathering in existing customers with the unlimited plan, AT&T reduces the risk that those people will defect.   It is unclear if/when Verizon or another carrier will have the Apple iPhone, but this move may help AT&T retain those customers when the phone does become more widely.
• The overage pricing structure somewhat discourages taking the 200 MB plan, as the monthly cost doubles if that is exceeded.   It is also somewhat punitive that any excess doesn’t roll over to subsequent months, as AT&T does with its Rollover voice minutes.  If a user ends up going over their allowance two days before the end of the billing cycle, they will still be charged $15 even though it is unlikely they will utilized much of that data.
• For the heaviest 2% of users (those that AT&T says exceed 2 GB usage per month), the price for data will increase, perhaps sharply.   For example, someone that uses between 5 and 6 GB per month, will now pay $65, more than 100% increase.  As we mentioned earlier, existing smartphone customers can keep their unlimited $30 plan, so initially this will impact a small number of people.  In fact, this may be a tacit effort to get prospective new customers who would tax their network to go somewhere else.  At some point, when AT&T’s network fully catches up to the exponential use of data, we would expect the carrier to introduce at least one new high allowance tier, to be perceived as more welcoming to heavier users.
• The other quirky thing about the new data pricing is that AT&T is now the only carrier where a smartphone rate plan can be cheaper than a quick messaging phone rate plan.   AT&T voice rate plans start at $39.99, making the lowest monthly cost on a smartphone plan $54.99 ($39.99 + $15 data plan).  However, that minimum cost is $59.99 for quick messaging plans, as those require at least $20 of some combination of messaging and non-smartphone data plans.   Given how profitable text messaging is for carriers, this non-competitive high minimum monthly cost (vs. other carriers) in this category is somewhat surprising.

At long last, AT&T has made picture and video messaging available on the iPhone. For those who already have a text messaging package, these message types are included in the plan and are treated like text messages.

To receive the new capability, you’ll need to connect the iPhone to your computer and download the latest update from Apple.

Shipped directly from AT&T with priority two-day free shipping.   Requires new two-year AT&T service.  Per AT&T, “refurbished phones are previously owned devices that have been unused or lightly used and returned during the 30-day trial period.”

8 GB iPhone 3G:  $49

16 GB iPhone 3G: $99

Apple iPhone 3G

16 GB, $199, 32 GB $299. New iPhone 3G S includes a 3.2 megapixel camera with video capture, a compass and song recognition feature. Current iPhone 3G, 8 GB drops to $99!