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AT&T's new iPhone, iPad plan: Cheaper but limited

By: cnn.comPosted On: 06/03/2010 11:40 A

AT&T announced new 3G pricing plans Wednesday that will make iPhone and iPad bills less expensive for most customers, but will also put a stop to unlimited data plans.

Under the new pricing scheme, 3G data service for AT&T smart phones (including the iPhone) will cost $15 a month for 200 megabytes. If customers download more than 200 MB, they will be charged an additional $15 for each subsequent 200 MB that they download.

For iPad customers and heavier smart phone users, AT&T will start offering a $25-per-month plan for 2 gigabytes of data. Under that plan, if customers exceed their allotment, they will be charged $10 a month for each additional gigabyte of data that they use.

Previously, AT&T charged a $30-per-month flat fee for unlimited data for both the iPhone and the iPad, as well as their other smart phones. AT&T will continue to offer a $15-a-month 250 MB plan for iPad users. The new pricing schemes will begin June 7.

The end result? Most customers will reap monthly savings of $5 to $15.

Roughly 65% of AT&T's smart phone customers use less than 200 MB of data per month and 98% use less than 2 GB, according to the company. Those percentages are likely a bit lower for iPhone and iPad users who tend to be heavier downloaders than other smart phone users.

"We're breaking free from the traditional 'one-size-fits-all' pricing model and making the mobile Internet more affordable to a greater number of people," said Ralph de la Vega, president of AT&T's mobile unit, in a statement.

Analysts say said the lower pricing tiers could help bring in new customers.

"We could be looking at a lot more people adopting the iPhone because of a much lower total cost of ownership," said Hugues De La Vergne, principal research analyst at Gartner.

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