AT&T, Verizon and the new iPhone 3GS

So I mentioned in a prior post that Verizon will be getting the iPhone sometime next year.  Well, with the WWDC and the release of the iPhone 3GS earlier this week, it looks like my theories are true.  Here is what came out of it and why:

1. The “S” in the iPhone 3GS is for the support for the faster 7.2 Mbps 3G standard or in Apple’s case… “speed.”  The problem is that AT&T’s network isn’t quite ready for the 7.2Mbps (see prior post).  While some cities are already experiencing this, the majority of the US won’t see it until 2010 or even 2011 in some locations.  Again, with Verizon’s LTE due out next year, these speeds will exceed 7.2Mbps which would not only make for a better “network gaming” platform, but for better download speeds and tethering.
2. Tethering… AT&T still isn’t ready for this.  It should be something as simple as plug and play like BlackBerrys have, but I think AT&T is pondering the idea of charging an additional $70 for unlimited data tethering on top of the already exisiting phone and data plan of roughly $70.  And when I say unlimited, it usually means a cap of 5GB/month.  Wouldn’t it be easier to just get a wireless broadband card instead? [BGR via Gizmodo]
3. MMS is another built in service with most cell phones now, sending pictures, videos, songs or even sexting if you are adventurous… but again, this service is delayed with AT&T.  As Gizmodo puts it “MMS [has] been around for literally years” but for the 3GS, not until later this summer.  Rumor has it that:
   

   “According to BGR, the reason AT&T isn’t going to be ready with MMS at launch is not because of any new pricing plan—it’s because of Opt-Out MMS codes. Apparently, because people were using MMS with the iPhone 3.0 betas, AT&T put an opt-out on all iPhone accounts. So, theoretically, if AT&T manually (yes…manually) removes all of these opt-outs, MMS would work just fine.”

   This should have been resolved before the 3GS release and if I were Apple, I wouldn’t be too happy about not giving our biggest customers (the United States) the best and fastest service available.

4. And the cost?  AT&T is desparate for new customers.  Verizon still has the biggest subscriber pool after absorbing Alltel.  So of course AT&T would have lower prices for the new 3GS for new customers.  Prices of $99 for 8GB version, $199 for 16GB version, $299 for 32GB version would entice anyone… even me (except for the fact I have will power and will wait until next year).  But what about your faithful customers who have stuck by you for so long?  You know, those early adopters of the iPhone 3G?  Well, if you fall into this category, you are screwed!  From Apple’s website:
   

   “For non-qualified customers, including existing AT&T customers who want to upgrade from another phone or replace an iPhone 3G, the price with a new two-year agreement is $499 (8GB), $599 (16GB), or $699 (32GB).”

   … awesome!

Don’t forget, these are just my opinions and theories just like Tom.  Take a read of what he has to say about this too!

[Flickr]