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If they do have add-on services, they could pull the same thing they did with that text message hike.
\"You have a contract for the basic plan...which is just phone calls. All these other features, we can raise the price whenever we want. Of course, all these features are the only reason why you bought an iPhone! PWND!\"
Okay...perhaps the customer service rep won't say \"pwnd\"...
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Did anyone listen to Cingular's call?
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You either get 18 months of super-basic phone service for free, or you get the first 18 months of your 72-month contract for free. Plus a $5000 ETF.
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The reason you can't go with the standard business model for the iPhone is that Apple refuses to let service providers give discounts or rebates for the iPhone. They don't want to commoditize their products and make it look cheap. This was something that Apple stated before the iPhone came out.
Cingular can only give discounts on their service.
This would be about the only way I'd buy an iPhone/switch to Cingular. Sure, the phone is shiny. Cingular, however, I have serious doubts about (I'm with Verizon.. it's the devil you know, you know?).
But then again, I'm one of those weird people who mainly wants their phone to just make phone calls.
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@wenhaver
Verizon aren't the greatest folks in the world either. I ditched them after they refused to provide a letter documenting the payment history of any customer with no late payments on their record.
That's right -- Verizon will tell someone what your payment history with them is, if and only if that history is flawed. I spent two $%@#^ days on the phone with them trying to get what I needed to establish some credit history. (I was trying to buy a house, but had almost never borrowed money in my life; not much fun).
I bet they're just going to give away a free $10-20 per month data plan. Nobody's going to want to use this without that feature. A $500 phone plus a 2-year $60-70/month contract will be a big turn-off to a lot of casual users. A data plan included in the $40/month contract, however, is a lot more palatable.
@ Charles Duffy - Oh, I hear you. Verizon is by no means a company that I'd shout from the rooftops about. But I've had them since they were PrimeCo, and haven't seen a really compelling reason to switch. From what I've seen and heard, most companies are just as bad as they are.
That said, my husband wants to try US Cellular next year when our contracts are up. If he wants to arse with switching us over, I'm cool with it.
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I agree with wenhaver, but here is the issue I have about switching, and this is case specific for me, I live in the woods and Verizon is the only that can reach out to us. iPhone or not, sorry Cingular.
I can see what could happen: and you started to go there with your comment \"or perhaps there will be deep discounts in service rather than the iPhone itself\"
The iPhone is going to come with a bunch of nifty tie-in services that AT&T has to provide. AT&T can give away the base service, which allows your phone to connect to the network, and then charge for the add-on services. These add-on services, like text messaging (per-use or packages) that they offer today, will become \"must haves\" for iPhone users and generate enough revenue to offset the free base service. Then in 18 months it all becomes a huge cash cow.