Chatter on Taxing the Text
By Azam on July 7, 2008
The good news is the iPhone is cheaper that bad news is not really. The new iPhone is offering faster 3G data speeds and GPS technology among major highlights. ATT is actually subsidizing the cost of the phone estimated at $600 to lower the down to 199 for 8GB. ATT plans to make up the cost through charging more for data services $30 that adds 120 from previous plan and then charging an extra for text messaging estimated around $ 5-10 for 200 another $120 for sending texts.
Depends what you consider Data
Many are unhappy about paying more for text messaging service which was previously included on the previous version of iPhone and ATT subscription plan. The payment plans are not exactly clear when it comes to text messaging of 160 character messages with previous limit 200. The cost goes to 10 cents if you exceed 200. Heavy users will likely need to spend more on plans that will increase over data plan by another $20-30. Venture Beat considers the new data plan a 3G rip-off .
To the Rescue
The applications being developed for the iPhone may ease the pain to some degree. Google is working on a version of gtalk available on the iPhone. The ability to have a real time chats on the iphone maybe a superior offering than sending text. AOL is working on have a tailored AOL chat made for the iPhone. Apple itself may develop a push service that will operate in the background. The Apple web applications will be restricted by running in the background only when a web browser is open. The availability of chat service on the iPhone will offer a way to work around expensive text messaging.
Regardless, the Apple iPhone should be a hit despite the aggressive subscription lock in that ATT is using. Apple definitely comes ahead on the business model with direct upfront subsidy payment on per unit rather than portion of subscription revenues. The launch of web services for the iPhone store and applications being developed to take advantage of new features such as location based services may make the package more attractive.
Categories : WirelessTags : 3G, AOL, apple, ATT, gtalk, iPhone