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Edition: U.S. Article Comments (8) Save Email Print Reprints Most Popular Most Shared China delays Gates trip in apparent snub for Taiwan 7:38am EDT Iran to sell 45 bln euros, buy dollars, gold -Xinhua 6:43am EDT Hole opens in Guatemala neighborhood, 3 missing 23 Feb 2007 Blagojevich trial may entangle Obama 11:30am EDT Butt test shows U.S. cigarettes high in chemicals 01 Jun 2010 Global stocks, oil rally after U.S. home sales data | Video 11:10am EDT BP tries again to curb oil spill | Video 11:33am EDT WRAPUP 4-BP tries again to curb oil spill, shares stabilize 11:31am EDT Japan PM Hatoyama resigns | Video 10:09am EDT Apple's Steve Jobs finds Foxconn deaths "troubling" 2:27am EDT Butt test shows U.S. cigarettes high in chemicals 01 Jun 2010 Iran to sell 45 bln euros, buy dollars, gold -Xinhua 6:43am EDT Google phases out Microsoft Windows use: report 01 Jun 2010 Japan PM Hatoyama resigns | Video 10:09am EDT Urine test improves prostate diagnosis: study 01 Jun 2010 UPDATE 1-Alabama closes oyster beds, warns swimmers over oil 01 Jun 2010 Woo-hoo! Homer Simpson named greatest TV character in 20 years 01 Jun 2010 Hole opens in Guatemala neighborhood, 3 missing 23 Feb 2007 AT&T to end unlimited pricing plan for mobile data 9:25am EDT Blagojevich trial may entangle Obama 11:30am EDT AT&T to end unlimited use mobile data plan Sinead Carew NEW YORK Wed Jun 2, 2010 11:42am EDT Related News Apple shares rally on strong iPad demand Tue, Jun 1 2010 Apple shares rally on strong iPad demand Tue, Jun 1 2010 HP to cut net 3,000 jobs Tue, Jun 1 2010 UPDATE 4-HP to cut net 3,000 jobs, aims for higher margins Tue, Jun 1 2010 UPDATE 1-S.Korea KT to offer Google's Nexus One smartphone Sun, May 30 2010 A woman takes a picture with her iPhone during the Dennis Basso Fall 2010 fashion show during New York Fashion Week, February 16, 2010. Picture taken February 16, 2010. Credit: Reuters/Brendan McDermid NEW YORK (Reuters) - AT&T Inc will stop offering an unlimited pricing plan for new subscribers to its mobile data services, in a move it says will cut prices for as many as 98 percent of its customers. Technology | Media The exclusive U.S. provider for Apple Inc's iPhone said the new metered pricing, which takes effect June 7, means the more customers use their phones for web surfing the more they will have to pay. While pricing for most data users will be $5 to $15 less than the current $30-a-month plan for unlimited usage, prices for AT&T's heaviest will be at least $5 a month higher. Analysts said the move would likely push bigger rival Verizon Wireless, a venture of Verizon Communications and Vodafone Group Plc, to follow suit shortly. Verizon Wireless declined to comment. Bernstein analyst Craig Moffett said the lower fees for light users was an important step "for public relations" but he noted that this would not help the heaviest users. "The low end price reduction for light users will reduce - but not eliminate - the inevitable firestorm of criticism from heavy users, who are certain to be the most vocal commentators," Moffett said. While some web commentators complained loudly about the new pricing, AT&T's mobile chief Ralph de la Vega told Reuters, "It's important we give customers the choice. There are some not signing up for smartphone data plans because they're too expensive," he said. De la Vega said the new plans would have little impact on its average monthly revenue per user (ARPU), an important measurement for wireless operators. Current customers can continue to use the company's $29.99-a-month unlimited data plan, but new customers will be shunted to the new plan. The new plans will start at $15 a month for downloads of 200 megabytes of data. That equals about 400 web pages, 1,000 e-mails with no attachments, posting 50 photos online or 20 minutes of video, according to AT&T. But if users exceed the 200 megabytes usage they will automatically be charged another $15 for another 200 megabytes. The company said 65 percent of its users use less than 200 megabytes of data per month. The next tier costs $25 for 2 gigabytes of data, which is ten times more downloads than the 200 megabytes plan. AT&T said 98 percent of its customers use less than 2 gigabytes of data today. The $25-a-month customers will be charged another $10 for each extra gigabyte of data they download per month. If the result is fewer downloads from very heavy users, the new pricing plan could potentially also ease capacity constraints that have caused network problems for the company in high usage areas such as New York. But de la Vega said the new pricing would not change AT&T's efforts to improve its network capacity. Only a month after its launch the new pricing plans will also impact buyers of Apple's iPad, for which AT&T is also the only U.S. service. Users of iPad will now be offered $25-a-month plans for 2 gigabytes of data, replacing the current $29.99 unlimited plan for these customers. AT&T shares were up 18 cents to $24.51 in morning trade on New York Stock Exchange. (Additional reporting by Ritsuko Ando and Franklin Paul; Editing by Derek Caney) Technology Media Comments See All Comments (8) | Post Comment Jun 02, 2010 10:37am EDT To all the IPad and IPhone users, all I can say is I told you so. Exclusive contracts lead to exclusive pricing. My first computer was proprietary and after the burn I got from that (very expensive upgrades), I have been PC compatible ever since and would never buy a phone or laptop with only 1 carrier. Potatoe1 Report As Abusive Jun 02, 2010 10:50am EDT This essentially aims against internet voice telephony – Skype, etc. AT&T doesn’t like losing long distance money :) Ananke Report As Abusive Jun 02, 2010 11:09am EDT @YouToldMeSo… Current plan subscribers are unchanged, it is only the new subscribers plans that have changed. So current customers are not “getting burned” as you put it. This could only hurt the sales of the new iPhone. smartin6 Report As Abusive Jun 02, 2010 11:22am EDT Just in time for the new iPhone, too! Gosh, what if they were sneaky and decided to apply this to everyone after their contracts are up? xanderlocke Report As Abusive Jun 02, 2010 11:37am EDT It appears to be a pretty good deal, I use my iPhone a fair amount but would be fine with the $25 plan, since I am on a family plan this will save me $25 a month. jstaf Report As Abusive Jun 02, 2010 11:37am EDT Anyone else noticed one of the main reasons they want to do this is to curb data usage to reduce stress on the network instead of upgrading said network?! spmcgraw Report As Abusive Jun 02, 2010 11:38am EDT @smartin- Yes, but it isn’t clear how it will be handled when you go to renew. This can’t be at all be perceived as good news to anyone. Heavy data users will have to start being concerned about what they download. Even light users will have the burden of tracking downloads hanging over their heads. Apple can’t be happy either as I suspect they would have not come close to the traffic through their app store had this been implemented from the get go as users will be much less likely to download apps to test if it goes against the data limits. @Ananke- yep, they no sooner give iphone users skype access than they essentially take it away. mynamehear Report As Abusive Jun 02, 2010 11:43am EDT That’s exactly it; after your contract is up, there are your new rates. Time to move to the Verizon IPhone. At least competition should keep a lid in the price gouging. AMERICANA111 Report As Abusive See All Comments (8) Add a Comment *We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language or appear to be spam and review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Analyst Research Mobile Newsletters RSS Podcasts Widgets Your View Labs Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week FindLaw Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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