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Sat, Nov 21, 2009 - 07:38 PM EST  —  AAPL: 199.92 (-0.59, -0.29%)  |  NASDAQ: 2146.04 (-10.78, -0.5%)

AT&T: No, iPhone tethering will not cost $55 per month
Friday, July 10, 2009 - 03:48 PM EST

"Without citing a source (not even an anonymous one), blog AppModo claims AT&T will be delaying multimedia-messaging support for iPhone customers until September. The blog also echoes a rumor that a tethering plan will cost an extra $55 per month for iPhone customers. AT&T has denied both these claims," Brian X. Chen reports for Wired.

MacDailyNews Take: Actually, they denied just the tethering claim, as Chen himself explains below.

"In an e-mail to Wired.com, an AT&T spokesman said the company will charge for a tethering plan but still has not determined how much it will cost or when it will become available. AT&T also maintains that MMS support will be available 'later this summer,' as the company stated in previous reports," Chen reports. "Then again, this statement doesn’t completely squash the MMS rumor. Early September is still considered late summer, so if MMS doesn’t arrive until then, AT&T will not have broken its promise."

Full article, in which Chen posits that AT&T will charge around $15/mo. for tethering, here.

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Jul 10, 09 - 02:58 pm Comment from: RL

Money whores. Why do I need to pay twice to get to the internet from the same device. If they were just a little less myopic they could generate some positive buzz to offset the negative beating they have taken, by including it with the current wireless internet plan. I know that if Verizon gets an iphone that the competition would make ATT stop and consider this nickel and dime approach. They have me by the short hairs now but I am switching as soon as it becomes available on another Network. AT&T;a little goodwill would go along way.

Jul 10, 09 - 03:00 pm Comment from: cptnkirk

So far, we folks using Rogers in Canada have it included with our data contracts of 1 Gig. No extra charge. It works great. Rogers says they will decide if they're going to charge us by the end of the summer.

I already pay $30 for 6 Gig data plan. I don't see why they should charge more. I've never gone over my quote in one month and I often forget to switch to Wifi for days at a time.

Jul 10, 09 - 03:04 pm Comment from: Gabriel

They've had to try to crush this $55/mo tethering rumor at least twice now. Clearly, it was beyond the geniuses at AT&T to figure this stuff out, you know, BEFORE Apple announced tethering. It's not like AT&T didn't know what Apple had coming up at WWDC.

Not only was AT&T unable to have tethering ready for iPhone 3.0, but they still don't even know how much they're going to charge for it, much less when it'll be ready! If they're looking to persuade Apple to let them keep iPhone exclusivity, this has to put their negotiators in a horrendous bargaining position (which, hopefully, will be good for all of us in the long run, one way or another).

Jul 10, 09 - 03:29 pm Comment from: shiva105

@RL:

One of my coworkers switched an iPhone over to T-Mobile. It was an original iPhone, so the contract had run out. And apparently. T-Mobile has a dedicated group of customer service reps to help people get their iPhones working on T-Mobiles network.

I have no idea what their pricing or coverage is like, but from what I saw, it *is* possible. I believe my coworker had to do something of a hack to unlock the phone, but the phone was not jailbroken.

Jul 10, 09 - 03:30 pm Comment from: AC

They should not be charging just to have the electrons flow to the laptop than to the display on the iPhone. The energy used in that transfer is entirely in the hands of the users, and paid for by the users. However, the energy used to produce the waves that transfer to the iPhone are paid for by AT&T;and thus by you. I would understand if the bandwidth was so high that one could easil route the information to multiple computers and still maintain reasonable internet speed, but we know that is not the case.

They are charging simply to allow you to move electrons, or waved (paid for by you thru your electric bill) to your computer. That is unreasonable.

It is like charging to press the iPod button on the phone, or for charging your phone in the first place in the presence of an elephant.

Jul 10, 09 - 03:34 pm Comment from: Mark Texas

I don't understand why it's such a mystery - Tethering for Blackberry and WinMO is $12-15 a month on every carrier but Sprint as they include it so at&t;must have concerns about iPhone's crappy network compression or something as it will actually use more bandwidth then the other devices.

Newflashs - wireless carriers are not an ISP and using their bandwidth = $cost. If you can't grasp or accept that by all means find an open WiFi connection. Unfortunately that is the reason people like tethering - FOR THE TIME YOU HAVE NO OTHER SIGNAL.

I'd rather the goverment tax us and put in a nationwide WiFi system. I'd pay $10-20 a month for that.

Jul 10, 09 - 03:39 pm Comment from: Britboy

Ha Ha, you yanks!

I only pay $15 a month for voice and $21 a month for hi-speed at home.

My friend there in the states, he pays $220 a month for 2 iPhones and that doesn't include tethering!!

ATT buggers, they are going to soak you...not $55 but they are testing the waters to see what people can pay.

Keep bitching or it will be $55!!! As it's $60 for the laptop connect card!!

And only 5GB downloads a month! HA!!

Keep up the fuss! Or they will take you!!

Greedy buggers them ATT types!

Jul 10, 09 - 03:43 pm Comment from: alansky

I agree that AT&T;is stalling because they know their crappy network can't handle the increased traffic that MMS and especially tethering would create. Of course they are money whores, which only underscores how little sense it makes for them to withhold a feature they can charge extra for.

Jul 10, 09 - 03:50 pm Comment from: BC Kelly

Now, I'm no expert in these matters, but ...


Imagine ATT is trying like hell to get their network up to speed

And find their proper balance of ri$k -v- reward$

And to not misunderestimate (ty GW, great word)

Cause once the iPhone hits its full potential

Traffic to and from The Cloud could look like an L.A. Freeway at 5pm


BC

Jul 10, 09 - 03:54 pm Comment from: Predrag

AT&T is stuck between a rock and a hard place. They are spending freshly made money from iPhone data plans on building out new towers and beefing up the network in order to cope with the onslaught of data-guzzling iPhones. They are acutely aware that allowing tethering can only increase the amount of that data guzzling. They are carefully monitoring the continuing pace of growth of that iPhone user base and figure out just how many of those would want to use the tethering feature. They could easily look at their existing user base and percentage thereof that are tethering users, and try to extrapolate from there. That would be misguided, however, since iPhone users are totally different from all other users and nothing can be assumed. Essentially, AT&T is facing a situation in which they can't possibly figure out how is the new tethering feature going to impact their network (i.e. bottom line). Same goes for MMS; while it's quite popular feature on literally all other dumb- and smartphones, again, iPhone user base is nothing like others, so it's another wildcard.

Eventually, AT&T will HAVE to make up their mind, bite the bullet and set a price. Ironically, if they had offered a metered data rate (like Rogers in Canada, or elsewhere in the world), then tethering would be a non-issue (it's up to you to figure out how to use the allocated data -- iPhone or a tethered laptop). With an all-you-can-eat data plan, they have a plausible (albeit somewhat flimsy) excuse to worry about the uptick in data use if tethering were to be allowed.

In reality, tethering is really an insignificant issue to be worried about. While iPhone is obviously wildly popular, only minuscule percentage of its users are even vaguely familiar with the concept of tethering, what it does and what the benefits of it could be. And even smaller percentage of those would actually be interested in using the feature. Essentially, it will only be a good option to certain groups of people; for example, college students when away from the campus WiFi (they tend to be used to carrying their laptops everywhere and accessing internet all the time), or corporate road warriors, who at this point aren't even getting the iPhone, with most corporations blindly stuck with BlackBerry.

Whatever the reasons, AT&T really has to make up their mind. $15 per month sound borderline high. $10 would make a bit more sense, although offering it for free would probably be the most reasonable proposition (how much more data could a laptop suck when an iPhone user already surfs the web, gets the e-mail and watches YouTube???).

Jul 10, 09 - 04:00 pm Comment from: DanielM

As far as I understand it, ALL wireless providers charge extra for tethering if you have an 'unlimited' data plan.

Otherwise, the service is part of the limited data bucket.
------------------------------------------------------------------------------------
Rogers on Tethering:
What is tethering or wireless modem?
Tethering or wireless modem functionality is the use of your phone (such as your iPhone) as a wireless modem to connect to the internet from your computer. You can connect your phone to your computer through Bluetooth wireless technology or the USB cable provided with your handset.

Can I tether on my iPhone?
To use tethering or wireless modem functionality you require the new iPhone 3G S, or an iPhone 3G that has been upgraded with the new iPhone OS 3.0 software. Until December 31, 2009, if you have subscribed to a data plan which includes at least 1GB of data you may use tethering as part of the volume of data included in your plan at no additional charge. Tethering cannot be used with data plans of less than 1GB.

Will data charges for tethering be free?
No, tethering data usage will come out of your existing data bucket.

When will I be able to tether on my iPhone?
Customers with an iPhone 3G S will be able to tether right away. Customers with an iPhone 3G, will need to upgrade to iPhone OS 3.0 software (which will be available as of June 17th, 2009) and by June 19th, 2009, Rogers systems will have been updated to make tethering fully operational for all eligible iPhone 3G customers.

What will happen on December 31, 2009 when the promotion expires?
Rogers will continue to enable tethering on devices that allow it, but data plans will be adjusted to better reflect the way customers are using tethering services.
------------------------------------------------------------------------------------

Perhaps we should just relax a bit. One of the prerequisites for AT&A;to get exclusivity with Apple in the first place was that they had to reduce their prices on their existing data plans. Does anybody recall the pre-launch uproars re AT&Ts;iPhone Plans only to be silenced when the actual prices were announced?

My bet is that AT&T;will charge much less than everybody is fearing. For sure it has to be something. Otherwise, everybody would just cancel their home internet service.

Jul 10, 09 - 04:00 pm Comment from: Urlow

ATT will have free tethering up to 5GB, or $15 for 15GB. Doubt they will have an unlimited plan.

Jul 10, 09 - 04:19 pm Comment from: Predrag

Urlow:

You aren't from the US, are you? The data plan offered with iPhone is unlimited. There are no metered options in the US. It will be impossible (or at least extremely impractical) to track data usage while tethered, in order to limit tethering there. When they decide to turn on tethering, it will HAVE to be unlimited, just like the existing plan. That's why they are worried; they just haven't a clue how much of an increase in traffic is it going to be.

As for the existing data plans, before the original, $20 unlimited data plan for EDGE iPhone, AT&T used to charge $30 per month for unlimited data on ordinary dumb- and smartphones, on top an "eligible" voice plan (if I remember correctly, it could not have been the cheapest voice plan of $35 per month; it had to be at lest $50). So, yes; the iPhone data plan was initially significantly cheaper.

So, DanielM is probably closest. It will likely be something rather low, but it will surely be a monthly charge.

Jul 10, 09 - 04:35 pm Comment from: Britboy

ATT cannot handle the load if all a sudden, millions of iPhone users switched on their tethering.

ATT is barely hanging on right now!

lookie here!


http://tech.yahoo.com/blogs/patterson/54170

Jul 10, 09 - 04:51 pm Comment from: dave

The cost of tethering with the iPhone will be higher, because:
-there are too many people with iPhones
-Apple will make it too easy to tether

It's not a problem for other phones, because they make this process hard to configure, and people aren't used to making full use of the capabilities of their cell phone (smart or not). The iPhone is not like this at all.

When tethering becomes available, expect AT&T;'s network to be even more unbearable...

Jul 10, 09 - 05:24 pm Comment from: Loru

Correct...It'll be 54.99 gosh!!

Jul 10, 09 - 05:58 pm Comment from: Zsus

Unlimited data for iPhone 3GS will cost only 13.82$ here in Finland. It includes tethering. It's a new offer. It was 20.80$ before.

We have to pay much more for the phone itself, but what you have to pay for using the phone is just ridiculous.

Jul 10, 09 - 06:01 pm Comment from: alansky

In reality, tethering is really an insignificant issue to be worried about. While iPhone is obviously wildly popular, only minuscule percentage of its users are even vaguely familiar with the concept of tethering... —Predrag

Idisagree for the reason you have already pointed out: that iPhone owners are unlike any other cell phone owners. The do more of everything with their iPhones than any other smart phone population; and I guarantee you they'll take to iPhone tethering like a duck takes to water. The student population alone represents a huge potential market for this service.

Jul 10, 09 - 06:25 pm Comment from: Won't Bite

Faget about it, AT&T;!!! Not at any extra!

Jul 10, 09 - 06:49 pm Comment from: silverhawk

"Early September is still considered late summer...."
For the Northern Hemisphere, fall begins on September 22, 2009 at 5:18 pm EDT.

Jul 10, 09 - 07:03 pm Comment from: WTFrank

AT&T;is why I haven't upgraded to a new phone. Still on the original phone from two years ago. Plan is now mine to do with as I choose. When someone else can sell the iPhones, I'll switch without AT&T;hamstringing me.

Jul 10, 09 - 07:20 pm Comment from: derek

This is a very simple issue for AT&T;approach. How does the electric company meter your electricity? If you use less, you get charged less for it. If you use more electricity, you are billed at a higher rate. Tethering should be just like this. I'm sure they can get apple to include a meter which monitors data in tethering mode, as it already shows total data downloaded and uploaded from the network in preferences. This needs to be put in place so that users won't abuse the tethering service by replacing their home broadband with their iPhones, and download 1 GB files every day.

It would be really obvious that a user is abusing tethering if it shows that they've been downloading 1 GB or even half a GB a day. That can't be all done on an iphone. (unless you're installing the Myst app on the app store, where it suggests you download it on your computer).

And I agree with the knowledgeable Predrag. The demographic of MDN viewers is definitely similar to the demographic of most iphone users. Most users prefer an iphone over other phones because it is just simple to use, unlike other phones. They don't necessarily want to do all of this techy stuff like tethering 3G to a computer.

Jul 10, 09 - 07:25 pm Comment from: derek

*correction to my last post

you can't download an app over 10 MB on the app store off of the AT&T;network. So it is impossible to reach even 512 MB in one day on an iphone.

Jul 10, 09 - 07:39 pm Comment from: carpmusic

So is anybody on this list actually tethering using an iPhone already? I've already tried it and it works like a charm and I didn't have to sign up for any extra services....although,I haven't seen next month's bill yet! For me, it's only for a situation when I'm not near a wifi. After reading the list here, nobody said anything about being able to do. They're all waiting for the might AT&T;god to give them the o.k.

Jul 10, 09 - 07:41 pm Comment from: Anonymous©

If it's $15, that will be a surprise. Isn't tethering with other devices $30 or $40 a month? I know a PC card is $60, and isn't a smartphone tether the same as a PC card or USB stick?

Jul 11, 09 - 06:14 am Comment from: Hm...

This just serves to point out the shameful lack of broadband access in most of the US. Current figures put it at roughly 40% of the population even has access to broadband — at significantly higher prices and lower bandwidth than the rest of the developed world — the rest connect via dial-up. And meanwhile the ISPs and TelCos are busy lobbying for even more tax breaks and incentives.

Jul 11, 09 - 07:35 am Comment from: therepguy

When will APPL free us all from our tethered & constrained lifes with and to AT&T;?

Jul 11, 09 - 07:43 am Comment from: DanielM

With all due respect to comments such as made by Zsus, comparing the service charges for wireless in countries like Finland, which is less than the size of Montana, to the entire US is meaningless.

Keep in mind also, that in many countries, the infrastructure to set up their wireless systems were heavily subsidized by their governments. Thus a lot of the costs are not comparative.

In addition, population is an important factor. The countries with a higher concentration of peoples don't have the same geographical considerations and the encumbrances are often less and certainly not as varied.

Again, when comparing likes, the prices charged by the majority of wireless companies in and around the world are relatively the same. That is when you get down to the nitty gritty, past the small print, add in all the hidden costs and varied subsidization and currency fluctuations, etc. and lets not forget state/federal taxes/licenses.

As for, 'we can't wait for more competition', look at how much more we pay when 'deregulation' became the norm.

For what it is worth, it was Apple that got the 'world' to lower their charges for data plans. It was AT&T;that took the first chance and invested heavily in building and expanding its infrastructure. Now that the iPhone is so successful, everybody want to get into the action. Up to then, do we not remember the Apple cell phone bashing, the flag waving Nokiaites, Motorolaites, RIMites, and all the other cell phone 'ites' that predicted Apple's demise, and some still do.

Jul 11, 09 - 06:00 pm Comment from: zek

Why can't they just charge for bandwidth used? What's all this stupid packages thing about anyway? Maybe the electric company should charge you according to how many rooms you have... or how many dogs... it's just as relevant.

Jul 11, 09 - 09:16 pm Comment from: Cubert

The ONLY weak link in the iPhone is AT&T;'s unexplainable decisions.

Why no MMS yet? Bandwidth issues? There has to be another reason.

Jul 11, 09 - 10:25 pm Comment from: shen

"Mark Texas
at&t;must have concerns about iPhone's crappy network compression or something as it will actually use more bandwidth then the other devices."

Is your last name actually Texas is this a reference to where you are from?

I ask because I have had extensive conversations with 6 different people born in Texas in the last two days, and maybe it has just been the luck of the draw but they are all definitely on the dim end of the intellect scale, and after reading your comment i started to wonder if they just raise morons there...

the reason ATT is worried about the bandwidth used by the iPhone is because people actually use them for surfing and data. the vast majority of other "smart phones" are simply not used for actual data, because they are all so damn useless.

there have actually been numerous articles about this very fact. educated yourself.

try not to open your mouth if it is only to confirm that you are an idiot, especially when your name insults an entire state. unless they deserve it that is.

Jul 12, 09 - 05:09 pm Comment from: Cubert

@shen,
I haven't observed the lack of brain cell issues from people from Texas, but everyone I have met from there is definitely full of themselves and have an abnormal love of the state. I've been to Dallas for a few days and was sadly disappointed in every aspect. The only highlight of the trip was meeting Chuck Norris in a restaurant in what they pass for a downtown.

Jul 13, 09 - 06:11 pm Comment from: roadie

Not $55 --- $54.95

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