

AT&T reacts to iMessage, removes lower tier SMS plans - ajg1977
http://www.engadget.com/2011/08/17/atandt-streamlining-individual-messaging-plans-august-21st-leavin/

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bahman2000
Quite the way to show some good-will and consumer choice in light of all the
negative press re: TMO merger.

Just switch to Google Voice.

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jdelsman
Yeah, I did that a long time ago. Along with iMessage, I can communicate with
almost anyone in the world for free. AT&T? Bah, who needs 'em.

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masklinn
It's really quite funny: mobile operators are deadly scared of becoming little
more than "dumb (radio) pipes" for data, yet every single move they do is so
wrong on so many level it only ends up with more customers using them solely
as dumb data pipes.

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icebraining
I disagree, at least regarding this move. Carriers know the tendency is
inevitable, and they have no interest competing with free. They're doing this
to milk it while it lasts, and then they'll gladly let Apple pay for the
messaging service while they charge for the data. You're still tied to them
anyway.

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sabat
You're probably right, but the carriers (primarily AT&T) don't need to be such
dicks about it.

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pstuart
They can't help it, it's their nature.

I'm reminded of this every time I leave a voicemail and have to listen to the
lengthy instructions on how to use it -- not to be informative, but to up your
talk time.

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jwarzech
I wonder if my $5 for 200 msg will be grandfathered like my unlimited data
plan. Its the perfect amount since with having other communications platforms
I only use around 180 sms a month.

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fpgeek
If this is a reaction to iMessage, I wonder if Verizon will react similarly
(and carriers overseas, for that matter). I also wonder if we'll see any
iPhone-specific targeting (e.g. allowing cheaper/optional message bundles for
Android phones, but requiring iPhones to sign up for a data plan that includes
a large/unlimited SMS bundle).

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kalleboo
Why couldn't this just as well be "AT&T reacts to Google Talk"? I know that
ever since me and all my friends got Android phones, I've stopped using SMS
entirely and only use Google Talk.

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hboon
Because iMessage falls back to SMS and it's the SMS app everyone with an
iPhone uses. So it's easy for people to get started. Certainly many people
will start using it unknowingly. Convenience and zero-cost signup is powerful.
Carriers are stupid, they can't find decent solutions but they can certainly
see trouble ahead.

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kalleboo
Wouldn't that create the reverse incentive for AT&T though? Jack up prices so
that people get used to free iMessage but when get penalized heavy when they
use those heavy messaging habits on someone without an iPhone?

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hboon
They could raise prices in general, raise the minimum plan or have a pay-per-
use ($0.2) like you suggested. I doubt there can be a acceptable price hike
that can offset the decrease in usage volume.

Ultimately, these are stop gap measures and doesn't stop their decreasing ARPU
from losing dollars to 3rd party services not run by them - text, overseas
calls, apps, and media (songs, movies, ringtones), even voice calls and
location-based services. Carriers have been projecting an increase
contribution of ARPU from data services and text is a major component of it.

Anyway, raising prices to beat a downward trend is dangerous. Could make it
worse.

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RyanKearney
Cant wait for iOS 6 which includes VOIP so AT&T can remove all but their
unlimited calling plan with forced international package too.

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masklinn
With Facetime, iOS4 already has VOIP (much like iMessages, limited to other
iPhones — or at least macs for facetime)

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sabat
Except you have to be on a wifi network. Skype works well enough on 3G,
though, and connects to Android, laptops, whatnot.

