AT&T launches ‘Mobile Share Value Plans’ with notable monthly savings for BYOD customers, 18-month Next option

AT&T has launched a new initiative called Mobile Share Value Plans that is designed to save customers money on their monthly AT&T mobile phone service bills. The following changes are specifically for the Mobile Share program, which allows devices to work under the same AT&T account and share data, talk, and text plans. Similar to T-Mobile’s “un-carrier” approach, the new AT&T plans separate the cost of the device hardware completely from the monthly service charges:

With the ‘No Annual Service Contract’ options, smartphone customers can save $15 a month on Mobile Share Value plans.² Customers can receive these monthly savings when they: Get a new smartphone for no down payment with AT&T Next; bring their own smartphone; purchase a smartphone at full retail price; or when their smartphone is no longer under contract and they switch to the new plans. All Mobile Share Value plan customers will benefit from shared data plus unlimited talk and text on their phones. Consumers will have the ability to connect up to 10 devices, including tablets and other wireless devices, while business customers will be able to connect up to 10, 15, 20 or 25 devices, depending on the plan.

So, if you do not want your AT&T phone on a contract with a hardware subsidy, you will save $15 a month off the top. This applies to both new and existing customers (if they inquire) and supports devices brought to the network by a customer, AT&T Next devices, and phones bought at their full retail price. The most notable part of the new plans are the additional monthly savings. Depending on the plan you pick, you will be saving between $10 and $115 per month for one device or between $20 and $105 on an account with two devices.

For instance, the 300MB/month data version for one device currently costs $70 per month, but the new plans will drop this down to $60. At the high end, the $530/month 50GB plan will become $415. AT&T is also adding a new 8GB/month data tier for $130/month (1 device) and $170/month (2 devices). With the new approach of separating the phone cost from the monthly charge, the savings are even more significant if your phone is not subsidized. For instance, one phone on the 300MB/monthly plan will be $45 per month, and two phones on the 4GB plan will be $120/month.

In addition to the Mobile Share Value Plans, AT&T has announced a new tier for its AT&T Next program. AT&T Next allows a customer to pay (at minimum) $0 down for a device and roll the price of the phone into the service bill over the course of a 12-month period. The new tier allows a customer to pay over 18 months, and this means lower payment installments per month. This plan is meant for people who feel like they would be better suited to upgrading their device every year-and-a-half, rather than annually.

The Mobile Share Value Plans and new 18-month AT&T Next program become available on Sunday, December 8th. Full press release below:

Written by: Mark Gurman @markgurman December 5, 2013/5:00 am - 9to5mac.com

T-Mobile eliminates down payment on new 16 GB iPhones for holiday shoppers

T-Mobile has announced that they will no longer require a down payment on certain iPhone models during the holiday season. Specifically, customers will no longer have to pay anything when purchasing a 16 GB iPhone 5s or 5c. Several iPad models—the 16 GB Air, mini, and Retina mini—are also available for no money down, though that seems to be their regular price. Monthly payments on these devices ranges from $17-$26.

This deal is available both in physical T-Mobile stores and through the carrier’s online store starting on December 11th. This special price is only available for a limited time, though the carrier hasn’t given an official ending date. The full press release is below:

Written by: Mike Beasley @MikeBeas December 10, 2013/2:20 pm - 9to5mac.com

Get your subsidized iPhones while you can – AT&T says the deals can’t last

AT&T’s CEO Randall Stephenson told investors yesterday that with smartphone penetration approaching 90 percent, the existing business model – where carriers sell highly-subsidized smartphones to drive demand – will have to change.

When you’re growing the business initially, you have to do aggressive device subsidies to get people on the network. But as you approach 90 percent penetration, you move into maintenance mode. That means more device upgrades. And the model has to change. You can’t afford to subsidize devices like that.

Many U.S. iPhone buyers don’t realise the true cost of their handsets, as carrier subsidies mean they typically pay no more than $200. The full retail cost of those handsets, however, ranges from $549 for a 16GB iPhone 5c to $849 for a 64GB iPhone 5s. The balance is paid by the carrier, then clawed back through the contract payments … 

Carrier business models are changing, with T-Mobile the first to separate monthly fees for device and phone service with its Uncarrier program back in March. AT&T seems to be thinking along similar lines, with CNET reporting that the company saw the future in financing, rather than subsidizing, devices.

Stephenson also acknowledged that breaking customers of their habit of upgrading to a new phone every 18 months to two years is not an easy task. But he said a business models focused on financing rather than providing a subsidy would be “transformative” for the industry. He said the company’s new AT&T Next program, which offers no-money down and 0-percent financing, drives smartphone penetration in a way that is more sustainable over time.

It’s not all bad news for consumers, however. In the UK, where subsidies are much more visible, all carriers offer the option to pay full price for the phone in order to get much cheaper monthly service fees. As an example, I bought my iPhone outright at full retail, and as a result pay just £15 ($24) a month for unlimited voice calls, texts and data. Upgrading every other cycle means I typically save $3-400 over the course of two years.

Written by: Ben Lovejoy @benlovejoy December 11, 2013/4:57 am - 9to5mac.com

iPhone 5s undisputed king at all four major U.S. carriers ever since launch

The iPhone 5s has retained its status as the best-selling smartphone at the four tier-1 U.S. carriers for the third month running, with the iPhone 5c taking third place after the Samsung Galaxy S4.

Data from Canaccord Genuity showed that the iPhone 5s has topped the sales charts at AT&T, Verizon, Sprint and T-Mobile every month since launch, reports AllThingsD.

“Our surveys indicated continued strong sales of the iPhone 5s, as it was by far the top selling smartphone at all four tier-1 U.S. carriers and at most channels where the smartphone launched globally,” analyst T. Michael Walkley explained in a note to clients. “Our surveys also indicated steady iPhone 5c sales with the smartphone’s color options and more affordable price point proving popular with its intended audience” … 

Prior to the launch of the new iPhones, Apple held the top slot at only one of the four carriers, AT&T, with the iPhone 5 sitting in second place behind the Samsung S4 at the others.

On the basis of these numbers, Canaccord Genuity has increased its forecast shipment numbers for Q1 2014 from 52M to 54M. Supplies of the iPhone 5s have been a limiting factor until recently, but a store survey just a few days ago showed that supplies now appear to have caught up with demand.

The news comes just a day after the iPhone market share in China was reported to have doubled since the launch of the iPhone 5s and 5c.

Written by: Ben Lovejoy @benlovejoy December 13, 2013/4:22 am - 9to5mac.com