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AT&T to reduce smartphone subsidies, start shared data plans

Written by Andre Yoskowitz (Google+) @ 19 May 2012 0:48 User comments (3)

AT&T to reduce smartphone subsidies, start shared data plans AT&T Mobility CEO Ralph de la Vega has announced today that the company will reduce the amount it subsidizes for new phones.
The move will help the company "raise revenue," says the exec.

In addition to not giving back to the consumer, AT&T will follow Verizon's lead and create shared data plans for multiple devices and families who prefer to share a "bucket" of data, minutes and texts.

"We need to...allow customers to connect those tablets to some of the existing data plans that they have to be able to share them in a way that will drive more revenue for us, but also give a good deal to customers," says de la Vega.

The company also plans to "keep 2012 smartphone sales limited to 2011 levels to cut down on upgrade costs" including subsidies on new devices. "You can take it to the bank that our thrust is to lower that in every case we can."

What this means for consumers is higher prices up front, even when you sign up for a new two-year contract.

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3 user comments

119.5.2012 3:12

Wow just wow. So basically no more unlimited data plans for those who were grandfathered in so we can be forced onto a shared data plan and use a function that is already built in to our devices but be charged for it this time so AT&T can make even more money to put in Ralph's gas tank.


The reduced subsidies should only pertain to one year contracts. Paying 300-400 bucks for a 600 dollar device for two years just to have the AT&T logo on it is terrible.

This message has been edited since its posting. Latest edit was made on 19 May 2012 @ 3:14

"Cable thief is a victimless crime."

219.5.2012 8:11

I will not be staying with ATT..........

322.5.2012 14:33

Do these companies not see the writing on the wall?
Consumers are SHOUTING at them about their billing practices and this is what they do?
These guys act like the crack dealers that they are. Someone needs to smash them.


Oh, Im sorry... Did the middle of my sentence interrupt the beginning of yours?

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