Psychology of Technology: Is AT&T Kidding?
Disclaimer: I am an AT&T customer with a data plan. Despite this relationship, I have tried to be objective and impartial in this post.
Did you see the post on boygeniusreport.com indicating that AT&T will require data plans for all smartphone purchases starting in September? Their press release is a real piece of work, filled with illogic, circular reasoning, and downright BS. So let’s parse their press release:
· “We want our customers to have the best possible experience with their Smartphones.” Shouldn’t it be up to us as to how we want to use and get the best possible experience with our Smartphones? How do they know what’s best for us?
· “A predictable bill is a key factor in customer satisfaction…” I’m thinking that an accurate bill is a key factor in my satisfaction. Bills would be predictable if customers understand precisely what they are paying for and how much they are paying. Having contracts written in simple English (or other language) would help (research has shown that many types of contracts are written at a graduate-school level when most Americans read at an eight-grade level).
· “…Smartphone customers will need to subscribe to a data plan, as the vast majority of customers already do.” If the vast majority of customers already have data plans, why the need to force the remaining people into something that they obviously don’t want or need (unless we don’t know what we need, but Big Brother AT&T does).
· “Data plans let customers fully utilize their device…” Maybe some people don’t want to fully utilize their devices. Perhaps they are happy just the way they use their Smartphones (I don’t think a Smartphone is defined by having a data plan).
· “…without the worry of bill shock.” It’s been my experience that bill shock only occurs when I’m charged for services that I didn’t enroll in or use.
· “A Sales Coaching Session will be available…” When sales representatives need to be coached on something, that’s a big red flag that there is dishonesty and not the best interests of the customer going on.
I think there should be law that requires companies to be brutally honest about their intentions, in AT&T’s case, they made the change to increase their revenues (we should acknowledge that AT&T isn’t the first to do this. Verizon started this last November).
I would file this press release under the category of Do They Really Expect Us to Believe This? Better yet, crumple it up and throw it out!
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Comments
drjim @Joe: On principle, would love to walk, but life and $$ trump principle in this case. No, not ready to leave AT&T for a few reasons. I’m less than a year into my 2-year contract. I have a data plan, so I’m not affected. I don’t figure the other companies are any better (or worse).
And I have to admit, when I talk to the right people at AT&T (higher up the food chain), I’m able to talk my way into phones and service for less than is advertised.
Until there is real competition and real choices, I guess I’ll stick with what I know. Remember the adage, “keep your friends close and your enemies closer” or is it “know your friends well and your enemies better?” In either case, that’s my two cents.
jimski With big business looking for ways to add revenue I am not surprised, but a bit dissapointed. Although I have always had a data plan I think choice is a good thing, and those that don’t want or need data, for whatever reason, should have the option to “opt out”.
Of course, for AT&T it is much more than the $30 per month fee. I am sure their thinking is that by forcing data plans, more users will seek out their “bloat” offerings and add $$$ services. That probably means that we are sadly going to see even more bloat in the future, rather than a one fee for everything kind rationale.
Hopefully (but not likely) they will offer incremental data plans like 1GB=$10, 2GB=$20 and Unlimited=$30, but that would go against their thinking of not having to worry about “bill shock”. Now the logical thing would be to reduce the cost of the Unlimited Plan to maybe $20, as they they are collecting more revenue by forcing everyone into it. That would benefit current data plan users and soften the blow for non data users. But whoever said that AT&T, or any big company, was logical.
simbadogg at&t is hands down the worst carrier out of the big 3. their plans and data are just outrageously priced. i seriously need to look into switching to tmobile. i probably would if their 3G coverage wasn’t so bad in my area.
jimski I have been an AT&T customer since Verizon chose not to embrace Bluetooth (I guess for fear of tethering or data theft) several years ago. I honestly have not cost compared plans but I wonder how outrageously priced they are. I pay $69.95 per month for minimum voice (450 minutes) and unlimited data. What does a comparable T-Mobile or Verizon plan cost? None of these 90 day specials. I mean the real two year contract cost. Just curious.
drjim I’m on the same plan with another $10 for my wife’s phone (she doesn’t have a data plan). It’s not the cost. It’s that they are limiting choice.
Though I think it is Sprint that says in their ads that they can save customers $1200 over 2 years with their plan.
SDreamer It’s true, its for the money, if it was for customer satisfaction, they would just do this: offer a full Data Block or offer the Data Plan, no inbetween.
Jeff I just wish they would come out with a family data plan like they did with text messaging. I have a 15 year old with a Black berry, a 13 year old with my old tilt and my wife with a fuze. None of them have a data plan, they just use the WIFI at home. But when this hits will ATT force me to pay $30 for each of these or is it only for new purchases.
drjim The press release indicates that prior non-data-users will be grandfathered in. But it’s unclear what happens when contract renewal time arrives.
Mark Well I am both a customer AND employee of at&t (Old AT&T was capitalized). First off, in response to simbadogg, that’s like saying I want the ride of a Lexus, but how about a Scion price? The two biggest networks are at&t and Verizon. Both just so happen to be THE EXACT SAME PRICE, and cost more than their competitors.
They are ALSO the two largest carriers subscriber wise. True, they are more expensive, but it goes with the old saying that you get what you pay for!!! Am I happy about this as a consumer? No. Does it make sense? Yes! I work in a retail store, and deal with customers face to face on a daily basis, and I don’t want to hear how I am an unintelligent rep who gives you the run around as I currently hold the highest rating on customer surveys in my region (which are random and anonymous by the way) and feel that since I too am a consumer, I should treat my customers like I would like to be treated (Cant speak for all stores). I never force a customer to get a data plan, and try to offer the device that fits them best. It only benefits me to do so, or I will have an irate customer coming back in a week because I sold them a HORRIBLE device and get a bad survey in return. But to get a WinMo device, Blackberry or a certain Apple product, and not getting the data is like buying a Ferrari, and towing it everywhere you went to save on gas and maintenance! It makes no sense. Should consumers have a choice, yes! And they do! There are plenty of other non-PDA devices that can sync data, play music, watch movies, etc. or whatever you want you device to do without data. Granted there are a few people that get a PDA device and don’t get data, yet still use the device to its fullest, but let’s be honest, the vast majority of non data PDA users just use the device to text and call only…..
For most of them, it is just a status symbol. Now I don’t know about you, but I am proud to use my Fuze (Soon to be Touch Pro 2) with data to its FULLEST considering without data, its just…..a phone. I want a device that keeps me in touch, organized, and is multimedia capable, not buy one to say “look what I can afford!”. I am a PROUD DATA PURCHASING WinMo USER!
[...] Psychology of Technology: Is AT&T Kidding? Psychology of Technology: Is AT&T Kidding? Teaser: Did you see the post on boygeniusreport.com indicating that AT&T will require data [...]
jimski @Mark: Thanks for the little at&t vs. AT&T tidbit. Hopefully, they will update the carrier info on the next generation of devices cause my Fuze still says AT&T.
Also a proud “data purchasing WinMo user”, but I wouldn’t mind a loyal user discount and maybe rollover GB’s or credits. Until battery technology improves, there is really only so much data pleasure a user can enjoy, unless they are tethered to a power cord which really puts a crimp on the concept of “mobile”. I don’t know how you can consume 6GB a month without charging your phone three times a day.
Reading through the blogs is looks like a simple workaround would be to purchase a dumb phone and plan through at&t and then buy an unlocked smartphone and change out the sim. Without any data that could almost fully support the cost of the unlocked phone (assuming you buy a new phone every year). No responsibility on at&t’s part for warranties or customer support, so I guess everyone is happy.
Another point made by bloggers would be to increase the subsidy on smartphones as a data plan will be required. Like maybe $99 for a TP2. Now that sounds like a good deal!
Mark Hello everyone. I just discovered this website and I like it so far. I’m actually an at&t employee and I’m a proud Fuze owner and I truly do enjoy my device. On the subject of the required data plans for all smart phone purchases I would like to say one thing about that.
As an at&t employee I cant tell you how many times people will buy smart phones without the data plan just because they think they look cool and dont actually know how to use the phone or have a reason to buy them besides the fact that for some reason they want one. Which as far as I’m concerned is fine. If you want something far be it from me to tell you that you cant have it.
The problem arises when people start pressing buttons on the phone and figuring out all the cool things the phone can do. Generally these include a lot of the internet applications. Not having purchased the data plan they end up accruing hundreds and sometimes thousands of dollars of pay per use data charges. As a company at&t has credited back most of these charges to the customers as long as they’re willing to get the data plan for their phone.
I know that you guys are quite capable with your devices and are well aware of how to avoid wracking up data charges if you dont have the data plan. However, most of our customers aren’t as capable. It’s just plain cheaper and easier for at&t to make the data plans mandatory than it is for them to continue the cycle of crediting back hundreds or thousands of dollars of data charges.
Believe me, I know you guys may not like it, but I see this literally every day. I have at&t service and I pay for the $30 data plan on my phone (and believe it or not I dont get an employee discount on that plan) and I think it’s worth it.
drjim @Mark: First, don’t be offended by FarTed. He’s harmless. And his reference to “whoring” is not what you think. It involves flashing an unauthorized (and better performing) ROM on your Fuze. It’s fun and easy and a big upside in functioning.
As to your comments, I appreciate your dual role as customer and employee of at&t and the perspective you bring from the side of the “death star.”
what I’m unclear about is this. Why would AT&T even allow a data connection to be established if someone hasn’t paid for its use? It seems to me that at&t must have the technology to just turn data off at their end so unauthorized use can’t occur. Or, for those clueless about data, at&t sales reps should educate customers about the costs of use without a data plan and then shut off the data connection yourself.
Regardless, smartphones are plenty smart without a data plan; in other words, data plans don’t define what makes a smartphone. Instead, it is the plethora of tools available on these phones that make them smart (e.g., calendar, contacts, music, calculator, the list goes on).
Mark (at&t) First off, the first posting of “Mark” was me {(I’ll just refer to myself as Mark (at&t)} , the second appeared to be a “Mark” from a different store. Second I haven’t had a Stock ROM in years!!! And jimski, change your rom and you wont have that AT&T problem. FarTed, RIGHT ON! And finally, drjim, with all do respect, you can find ANY of “Instead, it is the plethora of tools available on these phones that make them smart (e.g., calendar, contacts, music, calculator, the list goes on).”, these “tools” on even a BASIC prepaid RAZR. So I would have to disagree. The fact I can have push corporate email, and sync wirelessly is just ONE of the many DATA purchasing “tools” that makes my Fuze a PDA!!!
jimski drjim said: “what I’m unclear about is this. Why would AT&T even allow a data connection to be established if someone hasn’t paid for its use? It seems to me that at&t must have the technology to just turn data off at their end so unauthorized use can’t occur. Or, for those clueless about data, at&t sales reps should educate customers about the costs of use without a data plan and then shut off the data connection yourself.”
I will be interested in Mark’s comments but basically this would not be good marketing. Voice has sort of reached a value threshold but the opportunities with data are limitless. There is a goldmine out there if you can figure how how to suck it out of the consumer without them noticing. Media outlets want to charge to view content. On-line advertising is everywhere and new services are popping up every day to make life easier, for a price. The more opportunities a service provider has to expose their customers to all this new stuff the better. Turning off connectivity would do nothing to help their bottom line. Those uncollected data fees just get absorbed into our data plan costs. Sort of like uninsured motorist insurance.
Quick example: I recently downgraded from premium cable to basic cable but the rep encouraged me to keep my converter box even though I don’t need it. Why? Aside from them collecting the $3.00 per month, I may just decide to buy an occasional PPV movie or other service. And if my financial situation improves I can easily activate one or more premium services. Without the box, I am just another minimum payment customer. No opportunity for added revenue.
Many phones will allow you to have a conversation on at&t’s GSM network for the same monthly fee, but if you want a subsidized smartphone, you have to be prepared to spend a few more $$$ on extras.
AT&T Mobility Employee I work for AT&T Mobility in their Tech Support department and have also worked in the Consumer Customer Service dept. as well as Business Customer Service. Please take my advise. If everyone start flooding the lines with complaints and send letters to their office of the president ( you can get the address from customer service) they will back out of this crap.
xJesusisdeadlyx Hmm, I have pretty much every featured enabled on my phone but I like changing to what suits my needs for a couple months. If I was going to be out of the country on business, using my business phone, I would turn off all my features… Now with this crap I will be switching I have been with AT&T/Cingular since 2004. Not anymore.
The sheer fact that they are taking more consumer rights away and locking us in… Is atrocious. I will be leaving AT&T, like I left Sprint. Verizon seems to be a little more progressive in their ideas (not locking phones down to certain carriers, some looser contracts).
Reluttr I have a fuze and I have a dataplan… but this doesn’t make any sense, first of all 3/4’s of the phones they have listed as “pda’s” are probably bought by avid texters. Meaning they bought the device for its full qwerty keyboard and not for its web access.
If at&t has a problem with complaints about accidental data usage, then maybe they should put the same block on data usage that they have on tethering.
dude1 This is why we need to open networks. Given the Cellular vendors do pay for the the frequency’s they should not be able to purchase a monopoly. If at&t is such a great company let them compete in a true open market. If the cost of a Fuze or TP2 is $400-600.00 so be it HTC, Sammy, Apple and the others will figure a way to compete as well.
It is silly to think this is the only way to do things.
Derek Mark (at&t), you might feel that they are a great company that offers wonderful service, and maybe in your area that is true. In my area, where they bought out our local carrier, it isn’t.
Our local carrier had just completed a multi-million dollar switch that could have supported not only the entire state I live in, but also several others. According to at&t it is not up to par, so instead they are routing all of our calls from this market to Colorado, almost 1,500 miles away, a switch that is already at capacity.
We had recently ordered amplifiers for all of our towers (a significant amount due to the mountainous terrain here) and at&t has barred their installation, instead opting to use amplifiers that are half the power, simply because that is their “standard” amplifier.
We were set to receive 3G in this city last year, but when at&t took over, it was pushed back to September of 2009. That wouldn’t be too bad now, but unfortunately they have pushed it back once again. This time, November 2011.
They seem to think that ever single region will work on the same setup they use in Texas, and that just isn’t the case. Instead of putting a little effort into it to find out, hell, instead of using the equipment they already had to improve our service here, they have chosen to make the situation worse at every single turn.
And now they want to take away even more options? No thanks.
Ed Well what? This is news to me, I bought a Fuze Touch Pro last year and I was forced to get the data plan. I think there should be something done about this I mean cell phone providers forcing you to get a data plan. What if I do not want to get your data plan and I want to use the smartphone features though the WiFi. Better yet I think data packages should be sold separately, like I could have my voice plan through company X and my data plan through another company Y. I know this would require changes implemented on the hardware end, but wouldn’t this make the market more competitive and eventually benefit the consumer.
wekebu @Ed, call AT&T and cancel your data plan now before Sept 6th. When I got my Fuze on 11/11/08, they said I needed a data plan. I kept it for 3 months, it was slow and I don’t have a commute so it’s a waste of my money. I called them in Feb 09 and canceled the data plan. No problem.
If you don’t cancel now, you won’t be grandfathered in.
Cooper WHAT??????
SHWAT??
This is…this is an OUTRAGE! ;_;
…now I can’t have a smartphone…unless…if you already have your phone, are they going to make you get a data plan?
SOOO SELFISH>>>> GRRRRRRRR…..companies are so bad. Microsoft…AT&T now… and all the other blasted selfish garrrrr I’m so upset!
shane how lame! 30$ a month for data? i wont pay it. to me its just a nice to have thing, but i don’t need it. i get all my data through wifi. i do depend on my fuze for email, contacts, calender, reminders, voice notes, music, gps, etc. no other regular devices can handle so many functions so well. its sad that at&t is taking away the choice.
Dewq Just because I want the power and flexibility of a smartphone (Fuze owner) doesnt mean that I constantly have the thing on. I use the wifi maybe 20 minutes once a day to check my email, other than that I just use the phone…I bought it for the things I needed to do in my day to day life. This is like a cable company saying “Because you own a 1080P TV you have to have HD cable to get the most out of it…” and the consumer would say “What if I dont want it, I only use my TV for games and movies” and the cable company comes back with “Did I ask you what you want or did I tell you what your getting.” If this were any other medium (not phones) this would not stand.
FarTed Right On, Dewq! Anyone who tells you that you can’t use your Fuze to its full potential without a data plan doesn’t know what the full potential of the Fuze is. Data is only a very small (and ridiculously expensive) part of the Fuze.
Jason I’m a current AT&T customer (since 2000) and Fuze owner and am not happy with these changes. Given I’m still under contract, can’t I cancel my account with no ETF under AT&T’s own Consumer Code for Wireless Service:
“Carriers will not modify the material terms of their subscribers’ contracts in a manner that is materially adverse to subscribers without providing a reasonable advance notice of a proposed modification and allowing subscribers a time period of not less than 14 days to cancel their contracts with no early termination fee.”
See here for more information:
http://www.wireless.att.com/learn/articles-resources/consumer-code.jsp
jimski @Jason: From what I understand, this change will only take effect “after” you sign a new contract, so I don’t think they are in default of your (or my) current contract. I guess when a contract expires and you go month to month things could get a little muddy. But I really think this is intended for “moving forward” on all new agreements, so it could take two years to be fully implemented. Plenty of time for them to change their mind a few times if the industry changes direction.
hlm818 Absolute CRAP!!!! I currently have a Fuze and have been with At&t since 2003 with other winmo phones. I have been happy in general with them, but I will change providers if this happens. As for “accidentally” running up data charges for customers who do not have the plan, that is a lie. I have a data plan block on my phone that At&t put on my phone at my request. I use WIFI for ALL of my data use.
If I am not grandfathered in, since I got my fuze before this BS, I will leave At&t. If they won’t require it until a new contract is signed, I’ll just go month to month after my contract is up and once they make you have it, I’ll cancel. T-Mo, here I come! I already pay $90/month for mine and my husbands phones and I REFUSE to pay another $60/mo for data plans on both our phones. I do not have a data plan and I fully access all data features on my phone when I need to through WIFI. People who want it at all times when traveling or when a WIFI connection is not available (if you leave in a city, it usually is) can buy the data plan, but At&t, you piece of crap, do not make customers pay for it if they don’t want data!!! They must be following in the government’s footsteps, thinking they know what is best for everyone and eliminating personal choice. Calling and complaining to customer service repeatedly until they stop this crap.
wekebu I am so sad over this. I use my phone all day long. I write notes, listen to podcasts, take photos, daily. I swear, I must use the phone itself, about every 3rd day. I enjoy the convenience of having one devise.
Does this new plan mean I can’t have an all-in-one device? I honestly can’t use the data plan.
It’s not a matter of affording it. I’m 54 yrs old and have learned the value of my hard earned money = don’t waste it, spend it when it’s a need and save up for when it’s a want. I don’t need or want a data plan.
KHTar @Mark (at&t)
“There are plenty of other non-PDA devices that can sync data, play music, watch movies, etc. or whatever you want you device to do without data. Granted there are a few people that get a PDA device and don’t get data, yet still use the device to its fullest, but let’s be honest, the vast majority of non data PDA users just use the device to text and call only…”
This is simply not true. I’m a physician working in a hospital where I have WiFi available to me. I bought a smartphone because I was sick of carrying around a PDA and a Cell-Phone. I use the smartphone for its PDA functions, and this means programs that are available to be installed namely medical databases and patient tracking programs. While many of these programs are able to use internet data, that is easily syncable through a home or work computer or at worst through the hospital WiFi. Making the assumption that all PDA users are going to use internet data is simply incorrect. Many of us want the device for its clearly superior computing power over a simple cell phone.
I think its clear that several people here have already said that being forced to purchase something that isn’t useable to you is unfair, and it follows that at&t, by forcing all their customers to conform an invented standard is clearly doing a disservice to their customers.
vnb28 To reply jimski and the comment that he made about switching the sim card into a smartphone and using the data plan from that. I currently have a family plan with unlimited text for $30 and 2 of the phones have an unlimited data plan for $5 each cause of the family plan. 1 phone is the iPhone and the other is an HTC FUZE. I recently received an email that says that on 9/14/09 they are going to block my data plan if i don’t get their $30 data plan for iPhone. I asked the rep what other service i would get w/ the extra $25 i have to pay and all he can tell me was i get VISUAL VOICEMAIL so i can choose what message i want to hear. LOL ( i seriously laughed in his face). I specifically asked if this was going to happen with ALL my spmartphones and they said only the iPhone cause it was a third party phone; which goes back to what someone said they might have gotten some advice from APPLE. I am going to leave the plan how it is and see what happens after 9/14 or my subsequent bill and then call and argue with at&t again. (I just wanted to vent and what a better place to do it here with other smartphone users that understand) Thanks
[...] read something the other day about how AT&T is forcing all of its customers to get a data plan now in order to provide them [...]
[...] read something the other day about how AT&T is forcing all of its customers to get a data plan now in order to provide them [...]
[...] read something the other day about how AT&T is forcing all of its customers to get a data plan now in order to provide them [...]
side show bob If I already have a data plan (the media max 200) do I have to switch to the pda plan when I get the touch pro 2? What if I don’t need the push e-mail that comes with the pda plan?
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[...] a previous blog post demonstrates (here), I don’t let my relationship with AT&T interfere with my giving them direct, brutally [...]
So, Dr. Jim, is this enough to make you want to leave the mighty Death Star? Just seeking opinion as I am also a long time AT&T subscriber and don’t love the idea of being forced into a plan. I prefer my mobile service to be a la carte. Now, if they could show that I would actually save money annually, then it might not be such a big deal for me personally, but it is the principal of it all. Not to mention, if I weren’t with AT&T, where would I go to get the best and most reliable voice/data service?