AT&T to penalize users that tether phones?

Uh oh. I really hope this isn't true but I just heard from Matt Whitlock that AT&T might be putting the hammer down on customers that tether their phones for use as notebook modems. Over at Techlore, Matt has all of the details on what he's heard direct from an AT&T rep; or not so direct as it's actually conversation he overheard, but that doesn't change the potential impact here.

Apparently, sometime this month AT&T will start to monitor for "tether-ees" that are on the lower priced data plans. Standard data plans for unlimited modem / device data start at $59.99 a month; lower priced plans like the iPhone plan start at $19.99, so the company will be looking to stop that $40 a month shortfall. This is the first report I've heard on this topic, so let's wait and see what happens; if anyone can confirm or deny in the meantime, please do. I'm all for the cellular companies to turn a fair profit for their services, but I still have a problem when I can't use the full functionality of a device. If the lower priced plans are indeed unlimited for the consumer, what difference does it make which device I use with it?

Comments

[Rodfather]

I'm curious to find out how they would monitor accounts. Wonder if privacy concerns come up from this.

[Chris K]

What I don't get is that the iPhone's data plan is dirt cheap compared to the Blackberry plan, but both fit fairly data-heavy profiles.

The BB can easily push 20MB in just push email each month. The iPhone can do the same.

The BB has maps and a web browser. So does the iPhone.

The BB has a REALLY crappy web browser which serves to keep users off of the web. The iPhone has Safari.

If anything, I'd expect the iPhone users to suck up MORE data than the BB users, but the iPhone users pay less. I'd happily pay a fair rate for different tiers of unlimited data, if they actually classified them in any sort of sane fashion. I can't imagine that tethering is driving up their costs all that much.

[David]

This has been an issue with Verizon for ages. Their "monitoring" consisted of shutting down people who passed an unpublished threshhold of data usage, presuming they "must be" tethering or otherwise breaking the terms of service.

They have since come somewhat cleaner and published the threshhold (5GB/mo, I believe).

I still think they should have automatically tiered pricing, which I think would drive more data usage across users and overall revenue. It would work something like this: less than 1 MB (all units per month), might be something like 1.99. 10 MB - 3.99, 50 MB - 4.99, 250 MB - 9.99, 400 MB - 14.99, 1 GB - 19.99, 4 GB - 29.99, 10 GB - 49.99, and then capped if they are concerned about abuse. I bet a lot of people who don't have a data feature now may spend a few dollars a month if the access were on all accounts and tiered like that. (An option to turn it off would be there too, for folks that don't want it.)

D.

[Matthew Miller]

Even though the iPhone is only an EDGE device, I am surfing quite a bit with it and MUCH more than I was with EDGE on T-Mobile. If AT&T tries to shut me down from using the iPhone all that I want wirelessly, then I'll drop them straight away. Don't sell me an iPhone and tell me it is unlimited and then try to place limits on me.

They are going to need a better way to monitor this than just viewing the amount of data consumed. Man, these guys will do anything to take money from your pockets won't they?

[Scotty]

Privacy concerns? Only terrorists have privacy concerns, at&t wrote the book on helping the US government catch terrorists via snooping their internet access. :-)

If a $19.99 account monthly usage is "too high" then at&t can take a page out of the FBI playbook: javascript code injection. When the "cellphone" makes an http request they would inject javascript probe code into the returned content. The code is run by the browser and if the OS isn't mobile the javascript code can just load a URL that flags your account as a piggy backer.

[Kevin C. Tofel]

Matt, you should definitely not be shut down for surfing 7x24 on your iPhone over EDGE. The issue looks to be related to tethering only. I don't necessarily agree with it, but AT&T sold the iPhone with the understanding that you could use unlimited data to surf and e-mail on your iPhone, so that use should be safe. It's using the iPhone (or any other phone) to get data viewed on another device that would be the issue.

[Garrett Donnelly]

Cingular/AT&T has always as far as I could tell blocked data tethering on the Blackberries plan. According to the reps I talked with we had to pay 79.99 for them to unblock the port needed to tether. I have read different things about people making it work without that plan but never been able to get it work myself. I think this has something to do with Blackberries using the BES server to do web surfing and needing a link to the actual Internet for tethering.

[Jerad from Indiana]

I have to side with AT&T on this one.

A restaurant that offers an all-you-can-eat buffet charges a cheaper price for children because they're not going to eat as much. Despite the fact that it's an "unlimited eating plan," the restaurant can reasonably assume that your 4-year-old rugrat isn't going to eat as much as you. And you recognize this. If you had to pay $8.99 (or $12.99 on steak night) for your child to eat, you'd cry "foul!"

The same is true for phone usage. You're not going to surf as much on your mobile phone as you would do on your laptop, so in return, AT&T charges you less.

[Chris K]

While it's true that you're required to pay extra for tethering by design, it doesn't change the usage profiles that highlight the real problem here.

Push email is fairly data heavy, and it's not just a Blackberry thing. Treos can use Exchange ActiveSync with Direct Push, the iPhone can do it from Yahoo, and Blackberry has the BES. However, the Blackberry plans cost the most, with the Smartphone plans coming up next, followed by the iPhone as a distant third.

If all three suck up as much data, then the only real difference I see is RIM's licensing model. That still doesn't explain the separation, especially when the iPhone is *designed* to make you use the mobile network. No matter what, I've got push-email, and I'm using the web for grabbing small chunks of data as needed. I may even use Google Maps. However, with the iPhone, I can see myself *goofing off* on the web much more readily, since the browser is that much more usable. Sure, that's an experience issue, but why am I paying MORE when I'm using less data? Because the iPhone is more crippled? Does that really make a difference when I'm doing so much more with so much less?

I'd much rather see a tiered pricing model for data, since my own usage sans tethering isn't all that high. I'm basically forced to pay for a gallon of water when all I need is a glass, while the iPhone users pay less than half for the same gallon, and use well more than a glass.

[Ryan Wagner]

This is sure to piss off a lot of people...I can only imagine the letters we're gonna see posted on the Internet that are being posted on the Internet. It's going to be like the Verizon data limitation scam all over again!

[RichardC]

It's not a scam... your agreement when you purchased the data plan is that you would use it while you are on the device. Just because the plan say unlimited, it doesn't mean you are given permission to tether. If you want to tether you should purchase either a tethering plan or use an aircard.

Just because you can bypass the software to enable tethering doesn't mean its right.

[James Kendrick]

I don't like restricting tethering but as a Verizon customer I am used to it. The fact of the matter is users are more likely to abuse the bandwidth if they tether. I have seen people uploading video to YouTube, downloading large video files, etc., while tethering. That's what they don't want you to do and why they restrict it.

Even unlimited data plans from each of the carriers using their dedicated modems restrict what you can do with the network in the TOS. They all ban video streaming, etc., even if they don't limit how much you can transfer in a month.

[CRice]

I think AT&T is taking a big chance, to save a few bucks. Pissing off there customers won't help them in the long run. K&J please keep us informed about this issue. I bought a 8525 earlier this year form cingular when there was no extra charge for tethering (which was one of the main features I was intrested in getting) and now I can't even use one the best features in my 500.00 phone. This sucks and so does AT&T ....I am done with the them ..I am going to tether my money some where else.

[ryan]

i think that if you pay for unlimited data, then you should be able to use data, no matter how you use it. i think that att two different plans (one for the phone, one for the "laptop") is just a bunch of B.S. so they can make more money. they think they can do this because the average consumer will buy the ~$20/mo plan, and the business consumer will buy the ~$60/mo plan.

and this is total B.S. and monopolistic. like they need the money anyway.

if they wanted more people paying for data and therefore more money coming in, then they should just offer an "unlimited data" plan. period. not two. not three. but one.

data is data. who cares how you want to use it. if you want to tether, then so be it.

why won't att start acting like the rest of the world's carriers and do this.

then a whole lot more more people would test it out, use it, bring in more $$$ for att, and then they can upgrade their towers and services with the increased revenue.

i have many business clients that will not pay ~$60/mo for just a laptop connect plan. so they do not use "mobile data" at all. att should make the unlimited data plan something like ~$30/mo, and allow these customers to do as they wished.

think of all the money att would save because they would not have to pay a crew of people to monitor their customers usage, turn people off, piss people off, then have everyone jump ship.

do your customers a favor, make them like you, and you earn a customer for life - and this is NOT what ATT is doing in the least.

(i changed to Sprint because of ATT's constant screwing of their customers. Sprint called me and asked if i wanted to change my unlimited data plan from $15/mo to $10/mo. i asked "would i still be able to get unlimited data?" they said "yes, we would just like to save you another $5/mo." Sprint just earned a customer for life for my business.)

[Claude]

Yeah. A month ago after moving, I was debating the use of tethering as my sole means of getting online at home. The AT&T salesman said basically the same thing--that monitoring would begin shortly, and users would automatically be charged the higher plan =(

[Blake Ivey]

I think that ATT should just require us all to bring in our Tax forms and use that information to determine how much they can take us for. for the people at ATT, I would like to point a few things out: You can shear a sheep many times, but skin it only once. Corporate responsibility has to come into play at some point and so does the bottom line. Like every new technological innovation, cell phones, pda's, smartphones, and yes, even the IPHONE, will become commonplace within a few short years. And then, your shareholders are going to lose a lot of money. After that, maybe you'll listen to the consumer instead of your efficiency experts... Personally I think I speak for all of us when I say that your data plans are ridiculously overpriced. As for me? I'm going to keep using my laptop at coffee shops, or wherever I can pick up free wifi instead of paying $70 per month for your slow tethering plan. I would try to bargain with you and offer to pay $30 per month, but why would I do that when I could just get broadband cable internet for the same price? Wise up guys... You're about to lose a lot of money because there are a lot of people who feel exactly like I do. Piss me off enough, and I'll make the switch to a service provider who has even less coverage and higher costs. And I'd do that just to spite you. Listen to your customers... And dont ever ask me to take one of those stupid survey's again to let you know how you're doing. Trust me.... You dont want to know.

[Caleb]

ATT is definitely doing something over there. My internet has been shut off 3 times in the past 2 months, and it was because they put me on the unlimited Media Net plan vs the unlimited PDA plan. (Blackjack 1 user) The rep told me that they're sweeping the system "to verify users are on the correct plan, so that they arent put on pay per use, and they have all the features their phone is capable of". Whats even worse is now on the website they no longer say UNLIMITED under the tethering plans they now say 5000mb with $0 overage. (Which probably means thats when the account auditing department gets a flag to kick you off so they can charge you Pay per use at $.10 per kbyte) So when I called ATT for the 3rd time to rectify my internet problems, my rate got jacked up $10 a month just so my PDA phone ALONE can browse the internet. I already feel out the atmosphere in this room, and I agree - ATT is TRASHING THE HELL Cingulars atleast some-what shiny reputation. The FCC letting these two companies merge was the biggest mistake I've seen. Should've let AT&T sink, and then let Bellsouth buy AT&T for next to nothing. Ofcourse the consumer is never the winner.

They only have 5000mb tethering plans now for anything that I could find including the cards/usb adapters. I'm not paying $30 MORE dollars a month just to use my laptop once a month for a half hour to an hour... and I'm SURELY not trading in my 6mbit DSL for <1mbit wireless (unless ATT pushes another one of my buttons, and at that time I'll ditch them for cable and Verizon wireless).

Someone there needs to realize what they're doing, and whats to loose. Wrong moves at this point won't just sink a good cell phone company, but a land line company as well.

GOD himself feared the mafia run Ma-Bell, which is now resurected as The New Franken-Bell. Pray for us!