Real Cost of iPhone: Service Plan Revealed

Tue Jun 26, 2007 12:14PM EDT

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At long last the final shoe on iPhone has dropped: The cost of voice and data plans that you'll have to buy from AT&T when you purchase the device. The good news: It's not as bad as some had feared. The bad news: It's still going to cost you a pretty penny if you're used to paying $40 a month for a basic service plan.

Here's the damage: $60 a month for 450 minutes. $80 for 900 minutes. $100 for 1350 minutes. If you need even more minutes, plans continue to climb up to $220 a month for a whopping 6000 minutes. The good news: All plans include unlimited email and web, rollover minutes, unlimited mobile-to-mobile, and 200 text messages a month. All except the cheapest plan include unlimited nights and weekends minutes; the cheapest plan includes a mere 5000 of those. Contrary to earlier rumors there is no voice-only option for the iPhone: Remember you need data service to do all the cool email/web/mapping business that makes iPhone an iPhone, otherwise you've pretty much got a pretty brick in your pocket that can play Avril Lavigne tunes. Additional details are here.

Is this a good deal? Let's compare. AT&T's cheapest voice-only plan costs $40 a month for 450 minutes, 5000 nights and weekend minutes, and no data services at all. (Even text messages are about 15 cents a pop.) Adding $20 a month for unlimited web isn't a bad deal. For the $60 of the iPhone's cheapest plan, you can get AT&T's 900-minute plan with no data service.

Looking at it another way, AT&T's Messaging Unlimited plan (unlimited MMS/SMS messages) costs $20 a month extra. Its unlimited messaging and media plan (which gives you access to cellular video as well) costs another $40 a month. The company has a variety of data plans for web browsing phones. The closest to what the iPhone gets you is SmartPhone Max, at $30 extra per month.

Whew, that's a lot of numbers. Putting it all together, designing  a comparable plan to iPhone's $60 service on AT&T with a non-iPhone device would actually cost about $70 a month. Believe it or not, iPhone service is actually a bargain!

On the other hand, $60 a month or more isn't cheap. Over the life of the phone that equates to $1,440. Add in the price of the phone and activation fees and the cheapest amount you'll spend on an iPhone over the next two years is $1,975. You can almost buy a brand new MacBook Pro for that outlay. And don't forget the cancellation fee you'll pay on your old phone...

Overall I'm pleased. AT&T could have gouged consumers with a $100/month plan and few people would have flinched. Instead the company is offering an affordable option that should help to ease the sting of that initial $500 or $600 outlay. That said, I'm sure many will still find the plan too expensive. As always, I await your thoughts, opinions, and rants on the topic.

Comments on Real Cost of iPhone: Service Plan Revealed

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  • 67 Posted by grisnpete on Thu Sep 3, 2009 4:13PM EDT Report Abuse

    that is riduculous to pay that much for some phone. I guess it just fits person to person, I would not pay that much I don't care how great a phone.

  • 68 Posted by benwinge on Thu Sep 3, 2009 3:05PM EDT Report Abuse

    Without the option of switching out the battery, this phone is bunk.

  • 69 Posted by saxbone2001 on Thu Sep 3, 2009 9:06PM EDT Report Abuse

    These rates are very reasonable. I paid 399 for my Razor a few years ago (when it first came out) and was forced to choose a more expensive plan even though I don't use SMS. I'm really looking forward to the wifi capabilities of this phone.

  • 70 Posted by rega_atl on Thu Sep 3, 2009 8:35PM EDT Report Abuse

    I work for At&T and just to let everyone know..... These plans are actually very cheap. If you look into a blackberry with voice plus the data package you will see that these plans are priced VERY VERY well... It is a lot more expensive monthly to have a Blackberry or a regular PDA... Dont be fooled though the iphone is not a Smartphone.

  • 71 Posted by geminiqt4u2nv on Thu Sep 3, 2009 4:07PM EDT Report Abuse

    I pay about $95 a month for a Razr with no internet and 400 text messages. I get 1500 minutes and unlimited nights & weekends. For an extra $5 I would switch to the iPhone, it will eliminate my iPod and free some space up in my bag, lol. Now, if I only could come up with that $600 to by the iPhone....

  • 72 Posted by ironman1231 on Thu Sep 3, 2009 4:25PM EDT Report Abuse

    Existing customers can just add $20 to their current plan and re-up for another 2 years, to move into the iphone. it's on the website.

  • 73 Posted by roaddocs on Thu Sep 3, 2009 8:44PM EDT Report Abuse

    The IPhone is cool yes I agree but is it practical. That is questionable. I have read the screen will be made of glass which seems impractical to me. Now will it preform the same as a trio for bussiness applications is yet to be seen. Since its Apple bases format how will it be intergrated with windows bases systems? I think for the time being I am going to sit back and watch the lines at the AT&T stores. This should be better than watching the lines at Walmart at Christmas....

  • 75 Posted by trackstar171 on Thu Sep 3, 2009 10:19PM EDT Report Abuse

    the plans sound good to me, but AT&T is not wat it do. i guess ima be stickin wit verizon. but the iphone is cool though

  • 76 Posted by b_trombly on Thu Sep 3, 2009 3:16PM EDT Report Abuse

    You guys are all lucky, we can't even get the iPhone in Vermont.

  • 77 Posted by maxxstor on Thu Sep 3, 2009 7:12PM EDT Report Abuse

    Here is what I just love about people. Show them something someone else does not have or cannot afford and the sky is the limit. Wait 2 years and the I phone will be a 69cent giv away with a 2 year plan. It is nice, but I will wait.

  • 79 Posted by drewfigg on Thu Sep 3, 2009 3:48PM EDT Report Abuse

    Please wait! The iPhone is bound to have kinks, the plans will be expensive, and AT&T still has many service issues.

  • 80 Posted by halorastaman on Thu Sep 3, 2009 4:15PM EDT Report Abuse

    I WOULD LOVE TO BUY THIS PHONE; I ALSO LOVE TO EAT DINNER..OH THE CROSSROADS.

  • 81 Posted by hanay82 on Thu Sep 3, 2009 4:15PM EDT Report Abuse

    As an average consumer I'd say: "they have to stop the ordinary people from getting rich"

  • 82 Posted by jgs7six on Thu Sep 3, 2009 4:34PM EDT Report Abuse

    I would be great to have a phone that's as handsome as I am but why pull attention away from this beautiful face? Exactly, there is no good reason to do that when you are a feast for the senses like I am.

  • 83 Posted by daniel_razmjou on Thu Sep 3, 2009 3:35PM EDT Report Abuse

    haha over 1K for a phone .. hmm let me think i would take an extra vacation a year :p AT&T or cingular always over charge so its not like you are going 2 pay what you sign up with....

  • 85 Posted by dan_siebrecht on Thu Sep 3, 2009 3:36PM EDT Report Abuse

    Sounds alot like the ESPN phone when it came out. Their plans were outrageous when compared to common market carriers, but they spun it by focusing on their "exclusive" content, and sold some. The problem was, they didn't have the nugs worked out, and people got tired of the phone not working the way they were promised. Also, they messed up by going with Sprint, which had, or has, terrible coverage. SO... they had to close up shop and sell the application to Verizon, who marketed it as just another add-on instead of as a complete concept. I see this phone as a gimmick with a short life, but hopefully others are working on similar concepts without the pressures of getting it in the market place clouding the actual functionality of the product.

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