AT&T: Most iPad Users Will Skip 3G VersionAT&T: Most iPad Users Will Skip 3G Version
AT&T CEO Randall Stephenson recently indicated that he believes most adopters of Apple's iPad will choose the Wi-Fi-only version rather than spring for an additional monthly subscription. You don't say.
AT&T CEO Randall Stephenson recently indicated that he believes most adopters of Apple's iPad will choose the Wi-Fi-only version rather than spring for an additional monthly subscription. You don't say.Apple surprised many when it announced pricing for its iPad tablet device. The 16GB version with no 3G will cost a mere $499. The 32GB version will cost $599, and the 64GB version will cost $699. These prices reflect the version that only has Wi-Fi on board and no 3G.
Users who want to connect outside of coffee shops and away from home (or the office) will have to pay an additional $130 above and beyond the $499, $599, and $699 price points in order to get an iPad with a 3G modem inside. Apple has scored a really good unlimited data plan with AT&T for iPad users. They'll need to fork over an additional $30 per month to get unlimited access to AT&T's 3G network wherever they happen to roam. Let's see: $499(min.) + $130 + $30/mo = no bargain in my book. AT&T's CEO agrees.
"My expectation is that there's not going to be a lot of people out there looking for another subscription," said Randall Stephenson during a recent investor webcast. Stephenson believes the iPad will be a "Wi-Fi driven product."
Current iPhone owners already have access to AT&T's network of hotspots. So do Starbucks cardholders. These alone give millions of people access to free Wi-Fi all around the world.
Additionally, products such as the MiFi and Overdrive are gaining in popularity. These devices use 3G (and 4G in the case of the Overdrive) to access the Internet, and become Wi-Fi hotspots supporting up to another five devices. Anyone who has a device such as this will be able to use their MiFi to provide Internet access when away from buildings and other spots were Wi-Fi is common.
Long story short, AT&T probably isn't expecting its network to take a big hit from iPad users, because, well, iPad users won't be using AT&T's network.
[Via Reuters]
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