Tagged: AT&T

Why I Switched to New AT&T Wireless Unlimited Plan

Last week, was a whirlwind week in the US wireless industry. Before then, only T-Mobile and Sprint offered unlimited data plans to all customers, but by the end of the week all four major carriers offered them. On Monday, Verizon announced that it was resurrecting its unlimited wireless plan, and a few days later, AT&T announced that it was also offering an unlimited wireless plan to all customers, whereas it was only available to DirecTV subscribers.

Although all four carriers offer 4G LTE data, there’s an implicit hierarchy among the wireless carriers in the United States. At the top, AT&T and Verizon have the most mature networks that cover the most terrain and carry the most expensive pricing. Below them is a second tier of carriers, namely T-Mobile and Sprint. Their networks cover less terrain and are perceived as being less robust in terms of network connectivity. Because of this perception, they have been the most aggressive about pricing. That is why they were, before last week, the only carriers to offer unlimited plans.

To be sure, the only reason Verizon’s and AT&T’s unlimited plans emerged last week was because of the competitive pressure that T-Mobile and Sprint have put on Verizon and AT&T. Verizon likely felt the squeeze was too much to bear and capitulated with its new unlimited plan. AT&T likely saw this and quickly reacted by expanding its unlimited plan to everyone. It’s safe to say that none of this would have happened had AT&T been allowed to acquire T-Mobile.

For readers who are carrier-agnostic and are considering switching to an unlimited plan, Mac Rumors has produced a nifty comparison between the four unlimited plans offered by the majors. But as the kids today say, YMMV.

Unlimited vs. Unlimited

I was immediately intrigued by these new offerings. I have been on the grandfathered unlimited data plan that AT&T once offered with iPhones. I have held on to it despite the introduction of less-expensive metered data plans and a $5-per-month rate increase instituted last year that was due to increase by another $5 next month. Another factor in my intrigue was that I have two other lines on my plan: one is on a metered 3 GB data plan (labelled below as “Line 2”) and the other (labelled “Line 3”) is on a grandfathered unlimited data plan. I also receive a 20% employee discount through my employer.

Here’s a comparison between my current talk, text, and data plan; my current talk, text, and data plan after the impending rate hike in March; and AT&T’s new unlimited plan. (All prices are rounded to the nearest dollar, and they do not include taxes and fees, which I am considering as a wash between all these plans.)

Description Talk, Text, Data Plan Effective March 2017 New Unlimited Plan
Base Plan $60 $60 $60
Text Messaging $30 $30
Line 1 $35 $40 $40
Line 2 $45 $50 $40
Line 3 $40 $40 $40
Discount -$32 -$34 -$12
TOTAL $178 $186 $168

As you can see, the new unlimited plan for all three lines is about $10 less than the current talk, text, and data plan that I share with two other lines.

The savings are greater after factoring in the impending $5 per-month rate increase, effective March 2017, for each grandfathered unlimited data plan (Lines 1 and 3 in the table above). I guess AT&T’s strategy to bully us off the unlimited data plan finally worked!

Another factor to consider is that Line 2, the metered plan, often exceeds the 3 GB data allotment. AT&T bills the data overage at $10 per GB. I considered switching to a plan with more data, but the next higher offering is $50 for 5 GB. There is no “discount” for more data at this next plan; it’s similarly priced at $10 per GB, as is the base 3 GB and any associated overages. With Line 2 on an unlimited plan, there will be no more overage charges.

If I add a fourth line, it will, in effect, be free because AT&T reimburses you $40 each month for that fourth line, after a two–billing-cycle “waiting” period. That would significantly reduce the price per line.

But Why Stick with AT&T?

Although AT&T’s new unlimited plan is the most expensive of the four major wireless carriers and is the only one that doesn’t offer tethering, I prefer to stay with AT&T for three reasons:

  1. I am receiving $650 in bill credits from AT&T for my iPhone 7. When Apple introduced the iPhone 7 last September, AT&T allowed you to trade-in your iPhone 6 for up to $650 in credit towards an iPhone 7. You could get effectively get a base model iPhone 7 for free. Since I opted for the 128 GB instead of the base 32 GB model, I am paying the extra $100 over 30 months, which works out to about $3.30 per month. Should I leave AT&T, I will have to pay the remaining balance, which is significant.
  2. The AT&T wireless network is superior to the others where I live and work. Although it was hardly true a few years ago, AT&T has a very reliable wireless network in New York, particularly the neighborhoods I frequent. I considered switching to the more affordable plans on T-Mobile or Sprint, but after speaking to friends and colleagues, I resisted switching because those networks are not as reliable as AT&T’s. Moreover, Verizon had a potent 3G network that put AT&T’s to shame. In the 4G LTE era, the opposite is true. AT&T operates a robust network in New York that seems to outperform Verizon’s network, according to the testimony of my friends and colleagues.
  3. Tethering is not a factor. The unlimited plan never allowed tethering so I am not going to miss what I don’t have.

What Should You Do?

An unlimited plan isn’t for everyone. Most mortals use a surprisingly small amount of data, less than 3GB per month, so an unlimited plan would be excessive for them. Personally, I wonder if that’s because most wireless users have conditioned themselves to restrict their data usage for fear of overages. For the majority of those users, I say stick with your metered plan.

But I use a lot of data, regularly between 3 GB and 6 GB, per month, as sometimes as high as 12 GB. I like not having to worry about overages. Also, Line 2 on my plan, the one with the 3 GB plan, would regularly exceed those allotments. I doubt he would be happy turning on “safe mode” to slow down the data transfers to 2G speeds. The unlimited plan works for us, but it might not be the best for you. As I literally said before, YMMV.

Conclusion

In the end, the small but measurable savings between the talk, text, and data plan of yore and the new unlimited plan made a lot of sense. But also, my wanting to stay loyal to AT&T played a significant factor. As much as we all hate the cable company, the airline, and the wireless carrier, AT&T has been just fine for me. I certainly suffered when the iPhone was exclusive to AT&T, as making a phone call or transmitting data seemingly never worked, but in the 4G LTE era, things are different. Of course, this might change when 5G emerges as a standard, but that is still a couple of years away. And if AT&T falters, I’ll be off-contract. I can always switch to another plan or provider.

Update: AT&T announced on Monday, February 27, that it is introducing two new unlimited plans. I’m mulling it over and will repost here about what I think to do.

Title II > Title I

It’s been an exciting week for Internet advocacy in the United States. To put it in crude, succinct, and kinda androcentric-and-infantilizing terms, the Federal Communications Commission grew a pair and ruled to…

  1. regulate ISPs as a Title II Common Carrier instead of a Title I Information Service Provider.
  2. prohibit restrictions against community broadband, such as those in Chattanooga, Tennessee and Wilson, North Carolina, where they get faster and cheaper Internet access than in New York City.

Everyone has gone gaga over the first ruling, but I think the second one is just as crucial. Why? If net neutrality is “Obamacare for the Internet,” community broadband is the “public option” we didn’t get with the Affordable Care Act. It subjects commercial ISPs to competition that is primarily concerned with serving its citizens rather than enriching its shareholders.

The commercial ISPs have complained that if they were subject to Title II common carriage regulation, they would be less inclined to invest in their infrastructure. They would be less likely to expand access, and they would be less likely to increase broadband speeds in the coming years. In other words, they would act like a telecommunications monopoly with little incentive to improve their product. Guess what? They already behave that way.

Most of the country lacks access to viable broadband. For many of those who do have access, they face a Hobson choice when selecting Internet service providers. As for average broadband speeds, at 11.5 Mbps, the United States is hardly in the lead. We rank somewhere between Taiwan (9.5 Mbps) and Singapore (12.2 Mbps) among Asian nations and between Israel (11.4 Mbps) and Finland (11.7 Mbps) among EMEA nations.1

Throughout the twentieth century, AT&T, the telephone monopoly in the US, improved the technology to connect local and long-distance calls more efficiently, but the end-product was more or less unchanged for seven decades. AT&T held a monopoly over US telephone service beginning in 1913, under the Kingsbury Commitment, until 1984, when it was forced to fragment and sell its local exchanges into seven regional Baby Bells. In that time, there were very few functional improvements to the telephone receiver.

Comparing two receivers—one from the 1930s and one from the 1980s—it’s hard to tell what specific improvements there were. Both receivers consisted of a dial and a corded handset, and you could have one in any color you wanted… as long as you wanted black. Why was there no speakerphone? Where is the touchtone keypad? Why couldn’t someone put a call on hold or mute the receiver? If someone missed a call, why couldn’t the phone indicate so with a notification? And, why could someone not walk around any further than the length of the receiver’s cord?

Carterphone

The Carterphone from the late 1960s allowed telephone users to bypass the telephone cord.

The key reason why AT&T did not innovate and improve its product for the consumer was not because it was closely regulated as a utility and that it had to provide universal access, it was because it was a monopoly and no had little incentive to innovate. It was not until the 1980s that consumers were finally able to connect foreign attachments to their telephones, such as answering machines and modems, purchase their own phones, including cordless and touchtone devices, and choose their own long-distance telephone provider and calling plan.

Touchtone telephone

Touchtone “dialing” finally arrives in the 1980s. Was that really so hard?

In other words, with viable competition in underserved markets, commercial ISPs will be forced to, in the words of countless entrepreneurial free-marketeers, “innovate or die.”

Updated because the new WordPress for iOS app turned my Markdown into HTML. Yuck.


  1. This is based on Akamai’s State of the Internet report for the third quarter of 2014. http://www.akamai.com/dl/akamai/akamai-soti-q314-infographic.pdf 

AT&T Gives Unlimited LTE Users FaceTime…But Then Disables It

Speaking of retractions

During a bout of insomnia this morning, I read that AT&T was allowing its users with grandfathered unlimited plans to use FaceTime over cellular. AT&T had famously blocked FaceTime from this set of users to presumably entice them to switch to an individual or shared metered data plan.

After restarting my iPhone 5, I was able to use FaceTime over cellular.

But then this afternoon, I was demonstrating the process of turning this on for a fellow AT&T customer with an unlimited iPhone data plan, but the process didn’t work. When I looked at my own phone, the setting for using FaceTime over cellular had been turned off, and I could not turn it back on.

A handful of other AT&T customers with unlimited data plans in New York City area are reporting the same issue of not being to use FaceTime over cellular although they were able to do so before.

Meanwhile, AT&T has stayed mum about this whole issue, suggesting that it is a technical glitch not a policy switch.

I wish AT&T would consider those with grandfathered plans as loyal customers. We’ve clearly stuck with you, AT&T, throughout the years. This is despite having an unusable voice network when I had an iPhone 3G and an iPhone 4. Let us have FaceTime as a bonus and throttle us if we cross whatever arbitrary threshold you’ve set for us.

Is AT&T trying to bribe me away from being a data hog?

Today, AT&T sent me an email about setting up a meeting with a “trained representative” to learn about how to “Empower” my smartphone. At first I was going to delete the message, but after reading it, I was intrigued by the offer. For one thing, it originated from some regional manager. I guess that small bit of personalization worked for me to have a look at the message.

It read as follows:

As a special thank you for meeting with us, I authorized 1000 Free Rollover® minutes at no charge*.

We’ll share with you some simple tips, tricks and free apps that will help you get more out of your phone than ever before, such as:

  • The simple settings changes that can deliver big improvements to battery life
  • How to use Wi-Fi® networks to maximize your data speeds and save you money
  • How AT&T can help you to check and pay bill balances, monitor voice and data usage, and report network problems on the go
  • How to customize application-specific “Alerts” to only provide the updates you really care about
  • And much more!

So if I’m reading this right, it looks like a lot of what they’re going to show me is using less data, especially with the second point so I can use more WiFi. Also, they want to show me other ways so that I don’t get surprised with overages once they finally cancel everyone’s grandfathered unlimited plan, that sweet but kinda useless unlimited iPhone data plan, and replace them with metered plans.

I might actually take advantage of the meeting. Sure, voice minutes are almost a worthless currency these days, but 1,000 free rollover minutes is a nice nugget.