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Talk won't be cheap for iPhone users PDF Print E-mail
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Written by Eric Benderoff, MCT   
Tuesday, 26 June 2007

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If you're chatty, the iPhone will be costly.

But if you like to use your phone to watch videos from YouTube or as a mobile e-mail device, the highly anticipated gadget will cost roughly the same as any other smart phone.

Apple Inc. and AT&T Inc, the iPhone's exclusive wireless carrier, said Tuesday that pricing plans for the phone, which costs as much as $600, will range from $59.99 a month for 450 minutes to $99.99 for 1,350 minutes. In all plans, data usage — surfing the Internet or sending e-mails — is free and includes 200 text messages.
The phone goes on sale Friday.

"Apple has really simplified the pricing model," said Michael Gartenberg, a mobile phone analyst with Jupiter Research. "To get the full usage of the iPhone, it requires a data plan. So getting the data included in the plan is good."

But for people who don't use their mobile phones for data services, the pricing plan is high, he said.

"If you're just using your phone to make calls, this isn't the device for you. But making the data plan a core part of the phone makes sense for people to get full use of the phone," Gartenberg said.

Besides the 450 minutes for the entry-level plan, the service includes 5,000 minutes of unlimited weekend and evening use, said a spokesman for AT&T. Unused minutes are rolled over into the next month as well, he said.

By comparison, customers who opt for another smart phone from AT&T, such as the Samsung BlackJack or the BlackBerry Pearl, need to pay at least $30 a month for an unlimited data plan, which includes e-mail usage and Web service. Prices vary significantly. That data cost is on top of what AT&T typically charges for minutes.

For example, AT&T's Cingular Nation 450 plan includes 450 minutes for $40 a month while a plan offering 1,350 minutes starts at $80 a month. Data plans are not included.

The iPhone will retail for $499 for the model with 4 gigabytes of storage and $599 for the 8-gigabyte version.

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