Did AT&T’s Pull a Bait-and-Switch with the iPad?
AT&T’s service sucks. Just listen to our most trusted newsman on the topic. But AT&T response to this core business problem is not to improve its service, to invest in better ways to handle more customers.
No, AT&T’s response is to change its pricing to make us use its service less.
That’s cynical. It’s evil.
AT&T got rid of unlimited data (except for grandfathered accounts … else those changed accounts could all cancel without paying AT&T’s just-increased cancellation fee). They paint it as lowering the price but in truth they lowered the value.
The sick and stupid irony of this is that it was AT&T - in the person of Tom Evslin, then head of AT&T WorldNet (remember them? AT&T killed that golden goose, too) - that turned off the ticking clock on the internet when it established flat-rate pricing of $19.95 a month for unlimited use of the internet. That is what exploded use of the internet and enabled us all to browse without worry. That turned the internet into an industry.
And now it’s AT&T that turns the clock back on. Tick. Just as mobile is about to explode with new devices and new uses for us all to be ubiquitously and constantly connected doing all kinds of new things and creating new value along the way, AT&T says it wants nothing to do with that explosion (because it would have to work harder and invest more to do better). So it makes a business strategy out of imprisoning Apple fanboys as long as it can and making them use its service less. Tock.
AT&T also tries to push us off its network both with its pricing and with the promise of wi-fi. Its press release even makes it sound like an AT&T service that we can use unlimited wi-fi in our home! Thank you, AT&T.
Let’s note that AT&T’s action in relation to the iPad is nothing short of bait-and-switch as it was sold as using the magic of unlimited data with plenty of data-rich applications and now the price of that gadget only soars if you actually use it as it was designed: to consume media constantly.
I would hope that Apple is chagrinned about the door to which it has delivered its customers. But Apple sniffed the shark when it picked AT&T, making Apple’s control more important than its customers’ service and value and its partner’s quality and ethic.
Of course, this is all the more painful because AT&T’s competitors also suck. Verizon, which most say has good service, has data caps. T-Mobile, which I’m using on my Nexus One, has unlimited data but its network is about an inch worse than AT&T’s. When I was on Sprint, its service wasn’t great but at least they still have unlimited data. But with Verizon and Sprint, I can’t use their phones when I go abroad.
America’s mobile phone industry sucks! That’s more than a mere consumer kvetch. It is a strategic failing.
Hey FTC, if you really want to serve the future of media, why don’t you figure out how to instill real competition in the mobile industry? Right now, it’s a miserable quadopoly that has us by the balls and squeezes.
Can you hear me now?
: Oh, I meant to add: With GoogleVoice and Skype, I don’t even want your voice minutes, phone companies. All I want is your data. And I don’t even necessarily want data over your stupid caps. I don’t want to worry about it. Selling me a service I have to worry about is bad business.
Can you hear me now?
: Here’s Steve Jobs at D on AT&T. Nothing is said of AT&T’s moves to screw his customers the next day. Did he know about it? When asked what he’s going to do about AT&T, he essentially shrugs:
Cross-posted at Buzzmachine.com
Fred Grott says:
AT&T is a different entity than AT&T Wireless..they are not the same dude..
Tom says:
Flawed premise to start:
What proof have you that AT&T *isn't* improving their service - you're going against the word of Steve Jobs who, and it's sensible, talked about ongoing improvements for the backhaul etc.
It's more that they're still struggling, that they're making improvements but they aren't complete, *and* also that they did a bait and switch. Least you're not blaming Apple, but rather the carrier -AT&T.
You don't need to change from an unlimited plan if you were on it, if you don't want tethering.
Guess the US needs a carrier like 3 in the UK, to help change things up a bit. It has to be said, you're not out of options though - there's still the Verizon MiFi option.
Alex says:
This plainly isn't a bait & switch, as they're grandfathering accounts. If anything, Apple might be more readily accused of this, as Jobs is the one who marketed the iPad towards constant-consumption, unlimited accounts.
AT&T is reacting to observed usage, and changing which offers are available to new customers - while letting existing customers keep using the plan they signed up with. This is self-evidently not a bait and switch; their TOS almost certainly would allow them to force even existing customers to switch. Stop trolling for pageviews.
Mark Arlo says:
Did Jobs know about it?! Are you kidding me?
Mark Arlo says:
This is a textbook example of bait and switch.
AT&T knew it. Apple knew it.
AT&T cannot claim to be surprised by the iPad data consumption. They knew what to expect from their experience with the iPhone. They can't claim ignorance any longer. Further, the "grandfathered in" thing is not validated, in my view. People are talking about it, but AT&T has not said unambiguously that iPad owners who currently have the unlimited (unlimited as in the dictionary definition of the word, meaning no caps whatsoever, as opposed to the market-speak meaning of the word AKA limited) plan can retain it indefinitely. A "contract" with AT&T for the iPad is 30 days. That's the definition of month-to-month. Therefore, one can assume that all contracts for iPad users will end the first week of July. Meaning unlimited data plans for 100% of iPad users will end in one month.
In addition, the "feature" of the iPad data plan, AKA month-to-month, is now starting to look like a poison pill to allow AT&T to pull off this bait-and-switch. If AT&T offered one or two year contracts with unlimited data, they would have to abide by that. But offering the 30 day contract allows them to pull the rug out and claim they have abided by the terms of the agreement.
This looks to me like a very deliberate deception cooked up quite intentionally by Apple and AT&T. Lawsuit impending. And if the feds have any real interest in justice for consumers, they'll add this to their investigation list.
Scott says:
First, AT&T does not suck. They just suck for YOU. Sucks to be you. Sorry.
Second, it's not bait and switch. All current users are grandfathered into the old service options. So no switch for them. New users, that's a different story. And, besides AT&T is right that 98% of their users will fall into the new plans.
Kevin says:
Well, it certainly seems like a bait and switch for those like me, who ordered an iPad weeks ago and had it ship this week. I guess I can still hope it will arrive before the 7th and let me sign up for the unlimited plan, but I'm not optimistic, or happy.
Se7en says:
"This plainly isn't a bait & switch, as they're grandfathering accounts."
Really? I bought an iPad3G last month with the promise that I could use two plans, a 250M/month or an unlimited/month. I could buy either plan at any time, or go without for as long as I wanted.
Please tell me WHICH plan is grandfathered in as of June 7th? I'm on my 2nd month of the 250M/month plan right now. So next month I can switch to the Unlimited?
Not according to AT&T. I need to switch NOW to the unlimited plan, and NEVER cancel it, or I lose it forever.
How is that "grandfathering" in anything? It is a bait and switch, period. Apple and AT&T promised one thing, and just ONE MONTH LATER, have changed the game. It is just wrong.
ed says:
All This is why I ordered my iPad was the unlimited data. I have not received them yet Hope to send them back. I'm done with apple and AT&T!!!!
Tom Bradbury says:
Looking at aapl's stock performance yesterday and in pre market today I feel the chicken littles are freaking out over nothing. This is not a death sentence for apple the company will continue to grow prosper and release new and innovative products. I expect the new iPhone to be a great success and market share will continue to grow for their computer line.
Steve Jobs is no fool despite what those who have accomplished just a fraction of what he has done may claim.
Robert Sherwood says:
Yes - It is a form of bait and switch since both AT&T and Apple are still advertising the data plan (as of 6/3 @700am CT) for a device that has a two week backorder. The new data plans take effect Monday (6/7).
Fed-Ex dropped of my new 64gb 3g Ipad yesterday (6/2). The Ipad is underpowered and overproced but I needed the 3g coverage for one application. I purchased it knowing that AT&T offered both an unlimited data plan as well as a less expensive plan (option to decide month to month what data you need). While I guess I can still sign up for the unlimited plan until Monday (6/7), I have no confidence that AT&T will not drop the unlimited plan next month which would leave me with an $849 device I can't afford to use. I called Apple last night and they flat out said that thay had nothing to do with it and it was between me and AT&T, even though they are still advertising the 3g Ipad on their website today with the original data plans from AT&T. (YES - this is bait and switch since you can order an IPad today, thinking the data plan is available as advertised, get it in two weeks when the data plan is gone). My I pad will be going back to Apple today. I have never liked Apple and this just makes me hate them even more. The Government went after Microsoft, why not Apple....they are so much worse.
Amir says:
Whether it is bait and switch for some or not for others, the reality is that the iPad was launched with a promise brought by Steve Jobs himself: We got a great deal for you and AT&T is providing a no contract unlimited plan or a 250Mb plan. Well AT&T and Apple are both responsible for many of us that bought that 3G device instead of the wifi, or bought the device at all.
The iPad is not the iphone and requires more data to fully exploit the new magazines, data streaming, sharing, etc...That device has little value compared to a new iphone if it is limited to 2Gb.
Which means that maybe the new iphone needs to be sold to anyone again with a new plan and compete with the androids?
The fact that AT&T has bandwidth problems with all the gizmos out there is no secret. But they needed to provide incentives like a 9.99 plan for 200mb, a $19.99 for 2Gb and keep the unlimited to 3Gb. According to them 98% of the users are below the 2Gb mark, so what was the big deal to let the remaining 2% keep the unlimited plans?
Biting the apple certainly has consequences, since the beginning of time
Amir says:
correction:
Im my previous post, the correct sentence should have been:
The fact that AT&T has bandwidth problems with all the gizmos out there is no secret. But they needed to provide incentives like a 9.99 plan for 200mb, a $19.99 for 2Gb and keep the unlimited to $30. According to them 98% of the users are below the 2Gb mark, so what was the big deal to let the remaining 2% keep the unlimited plans?
Jonny Quest says:
Interesting article and almost intelligent comments,to boot !
Y'all should've done what I've done, purchase an iTouch (or an iPad)
and just poach free Wi-Fi hotspots forever ! I don't need a data plan,
a monthly bill, or anything. Well, I do need a McDonalds, or a Starbucks
(Gold Card members get free Wi-Fi) to poach a signal from. Heck, I can even
troll your neighborhood for a free unencrypted Wi-Fi signal to utilize
for free ! Get creative and use an iTunes App to locate your free hotspots.
I sometimes use the police station near my home. Liberate yourself from the
nickel and dime phone companies !
Michael says:
Shame on AT&T! I have to say this is clearly a Bait and Switch. My fiance purchased the 3g iPad the first week it went on sale. Initially she purchased the lesser capped data plan (to see if it would be a good fit), but after quickly burning through her limit upped to the $30/month unlimited plan w/ an automatic withdrawal. Today AT&T unilaterally switched her account to the capped $29/month 2GB plan a full 2 weeks before her current month expires. I already felt that this was disingenuous and was forcing early adopters into a de facto contract, because you would be required to maintain the $30.00/month payments to maintain the level of service. Deceitful and disgusting! One more reason I hope that Apple opens up their products to other carriers in the US.