How AT&T Decides If iPhone 3G Owners Get A Subsidized iPhone 3G S

Michael Johnston · June 19th, 2009, 02:19 PM

After AT&T announced that select iPhone 3G owners would be eligible for a fully subsidized iPhone 3G S the Internet let out a collective sigh of relief. We were told that early adopters would get the better deal and that eligibility status would be updated on the 18th. Well the 18th came, and many 3G owners, including those who bought on day one, were disappointed.

So what's the deal here? How exactly does AT&T determine if you get a fully subsidized iPhone 3G S? Well I spent most of this morning trying to figure it out and here's how it works:

Your upgrade eligibility is based on a few factors, the most important being when you purchased your iPhone 3G. If you bought your iPhone 3G in July, August, or September, move on to question two. You might be eligible, depending on the next questions.

The next most important factor is how much money AT&T gets from you each month. If you pay AT&T $99 or more in revenue, then it's likely that you're eligible for the subsidized price. Bear in mind that this number doesn't include taxes or other fees. If you pay $101.27 after taxes and fees, that's not gonna cut it. AT&T needs to have seen at least $99 go into their own pockets for a majority of your contract. If they've been getting less, you will not be eligible. This is where most people run into trouble.

The last factor is whether your account is in good standing. If you miss a lot of payments or do anything else to make AT&T angry, you may not qualify for the subsidy even if the other qualifications have been met.

And there you have it. The best way to tell if you're eligible is to check the AT&T upgrade eligibility checker at wireless.att.com.

If you have more questions, comments, complaints, whatever, feel free to post them below!

NewGuy · June 19th, 2009, 02:35 PM #2

discovered something very similar today when i went to see if i could get a 16gig 3G S. The first shocker was that apparently, here in Michigan we prefer the 32gig. One ATT store had 10 32gigs left and no 16gigs.

Next I called several times over the week to make sure the price I was quoted was correct. I had been given the $399/$499 price. OK. I can deal with it (considering I can sell my 3G for $200). I go in. And I am given another price all together $599/$699.

Wow. No thanks. I can wait.

thuggedout · June 19th, 2009, 03:15 PM #3

Yeah this subsidized pricing is going to continue to cause a lot a problems for people. If AT&T is deciding on giving the lower price to people that spend more money with them than people that don't, that's not good on AT&T's part. I hope they put clear guidelines for people to go by because If they start discriminating they will loss more customers than they gain.

Stephen007 · June 19th, 2009, 04:02 PM #4

Quote:

Originally Posted by thuggedout

Yeah this subsidized pricing is going to continue to cause a lot a problems for people. If AT&T is deciding on giving the lower price to people that spend more money with them than people that don't, that's not good on AT&T's part. I hope they put clear guidelines for people to go by because If they start discriminating they will loss more customers than they gain.

This is very normal in business that the customers that spend more money are going to get more perks. Why on earth would a business give everybody equal perks regardless of the profit/revenue they are getting from that person?

AT&T has been reasonably clear by putting up that recent website & giving out the *639# number. Companies do not routinely give out the internal formula they use to come to their conclusions (hence this helpful article) but they did lay out the 12 - 18 month period and people who spend more money will get their subsidized phone faster.

I hate it but I think it's reasonably fair.

NewGuy · June 19th, 2009, 04:07 PM #5

Exactly. THe only difference with the iPhone is that every one wants it. ATT/APple KNOW IT.

Imagine the same thing with those who bought the Instinct last year when it came out this time. Now they want the Pre...gunna pay for it. Or better still the Instinct Touch with full touch interface. It came out a few months later..... insanity.

Face it. Cell phones have come to the same cycle that computer technology has (and they aren't that different anymore). Moore's Law wins again.

pilotmike · **AT&T has no true method** - June 19th, 2009, 04:31 PM #6

I spend over 600.00 / month. I bought several 3G phones in August last year. Make every payment the day the statement prints. Credit rating is great. I am not eligable till Feb 2010. Oh sure I can pay 599/699 if I want one now. HORSESH*T Get it together AT&T before you get a discrimination class action lawsuit.

Beast · June 19th, 2009, 05:19 PM #7

My buddy in New Jersey spends plenty of money with At&T. He and his spouse got a 3G on day 1 together. One got the subsidized price, the other did not.

davidejorgensen · June 19th, 2009, 05:46 PM

For the original iPhone users, and now the iPhone 3G users, the complaints coming out around the Upgrade pricing are really amazing.

What other mobile platform offers FREE annual software updates giving you 80%-90% of the additional features from the new platform?

We got the FREE software update going from iPhone 1.0 to iPhone 2.0, and now from iPhone 2.0 to iPhone 3.0, each one of them really incredible leaps forward. No waiting in line... it's a FREE download from the iTunes Store. The migration is usually error-free and requires no new instruction manuals to read.

How many users of other handsets are getting such incredibly powerful upgrades for FREE every year? In my opinion the FREE sofware update offsets any complaints I'd have about the hardware upgrade purchase options.

pilotmike · June 19th, 2009, 06:23 PM #9

Quote:

Originally Posted by davidejorgensen

For the original iPhone users, and now the iPhone 3G users, the complaints coming out around the Upgrade pricing are really amazing.

What other mobile platform offers FREE annual software updates giving you 80%-90% of the additional features from the new platform?

We got the FREE software update going from iPhone 1.0 to iPhone 2.0, and now from iPhone 2.0 to iPhone 3.0, each one of them really incredible leaps forward. No waiting in line... it's a FREE download from the iTunes Store. The migration is usually error-free and requires no new instruction manuals to read.

How many users of other handsets are getting such incredibly powerful upgrades for FREE every year? In my opinion the FREE sofware update offsets any complaints I'd have about the hardware upgrade purchase options.

__________________
Agreed... The new 3.0 is an amazing upgrade for all of us. The main reason I would like to upgrade to the 3Gs phone is for video and faster speed. The older iphones are slow and crash. My friend just got the new 3Gs and it is super quick. Also looking forward to the AT&T 7.2 network upgrade. The older 3G phone gets horrible call drops everywhere.. Hopefully the new network (released late 2009 early 2010) will be an improvement..

frannyc28 · June 23rd, 2009, 12:54 PM #10

Well I found out the reason why I am not eligible for the subsidized price... I FOUND A LOOPHOLE ON THEIR DISCLAIMER and that put me on the 18 months upgrade time frame.

I got my first phone with the company when it was Cingular back in 2000. In 2002 I moved to New York from FL. They had to change my number and phone since FL market didn't use the sim card technology and NY had it already.

On 2004 they changed their plans and added the rollover minutes crap and since then I have had the same plan. The loophole was simple to find. The contract I signed (actually signed) states that I will keep my voice plan with the same amount of minutes for the same price for the whole duration of the contract. AS LONG AS YOUR CONTRACT LAST. Well... since 2004 my contract was never expired. Every 12 months I upgraded my phone and that automatically EXTENDED my contract for another year. Which LEGALLY means my contract never expired. When I changed to the iphone 3G, and since they figured it out that lots of people were on the same boat I was, they tried to FORCE EVERYBODY TO SIGN A BRAND NEW CONTRACT. But they made a huge mistake... HAVE YOU EVER NOTICED THAT AT&[shi]T REPS NEVER KNOW WHAT ARE THEY TALKING ABOUT? you can call 3 times on the same day and ask the same question and you will ALWAYS get a different response. Well when Apple announced the iphone 3G we had to wait for the actual release date on July 12. At that time it was not clear neither for the customers nor for the AT&[shi]T reps if with the NEW PHONE you were going to be FORCED to change your plan.
Every time you call and change something on your plan, the reps are FORCED to send you a confirmation email where basically they copy+paste the notes they leave from your conversation with them. I called a couple of times to make a couple of changes and asked if I was going to have to change or sign a brand new contract with the 3G or if I was going to be able to keep my plan. They told me I could keep my plan but had to change the iphone plan. And sent me the email with the notes.
When they tried to forced me to change my plan, since I had the email confirmations stating that they misinformed me they had to keep me on my 1000 rollover minutes, unlimited cel to cel for $39.95 a month and add the new iphone plan with the text messages... Sorry guys if you mislead your customers and forget to teach the dumb monkeys that work for you IT IS NOT MY FAULT...
This make them angry and... I AM BACK ON THE 18 MONTHS UPGRADE TIME FRAME ALL OF A SUDDEN!

They made the same mistake this time and told me and sent me emails confirming that I will not need to change my plan if I upgrade in Dec. to 3GS...

Will they move me to a NEVER UPGRADE time frame this time????!

frannyc28 · June 23rd, 2009, 01:07 PM #11

Quote:

Originally Posted by davidejorgensen

For the original iPhone users, and now the iPhone 3G users, the complaints coming out around the Upgrade pricing are really amazing.

What other mobile platform offers FREE annual software updates giving you 80%-90% of the additional features from the new platform?

We got the FREE software update going from iPhone 1.0 to iPhone 2.0, and now from iPhone 2.0 to iPhone 3.0, each one of them really incredible leaps forward. No waiting in line... it's a FREE download from the iTunes Store. The migration is usually error-free and requires no new instruction manuals to read.

How many users of other handsets are getting such incredibly powerful upgrades for FREE every year? In my opinion the FREE sofware update offsets any complaints I'd have about the hardware upgrade purchase options.

Can we assume you work for AT&[shi]T???! Let me remind you that ALL THAT YOU MENTIONED HERE DOESN'T COME FROM AT&[SHI]T but FROM APPLE and that the UPGRADE COMPLAINTS are there thanks to the LACK OF GOOD CUSTOMERS SERVICE (and the total disregard of the fact that we remain loyal to them, not because they have an AMAZING SERVICE but because they have monopolized the market by being the EXCLUSIVE carrier of the iphone - which it doesn't happened in other countries of the world- thanks to the greediness of apple also of course) and from my point of view MORONIC MARKETING PLAN since they are loosing tons of money by not allowing the rest of their current customers to upgrade.

What do we get from AT&[shi]T? A poor service, full of problems and tons of EXCUSES. But the upgrades, the new phones, the apps, the better systems and the better quality DOES NOT COME from AT&[shi]T but from APPLE!

So instead of taking credit from Apple's work, what about trying to keep your current customers happy and do something to fix your Flaws of service AT&SHIT?!

frannyc28 · June 23rd, 2009, 01:11 PM #12

Quote:

Originally Posted by pilotmike

__________________
Agreed... The new 3.0 is an amazing upgrade for all of us. The main reason I would like to upgrade to the 3Gs phone is for video and faster speed. The older iphones are slow and crash. My friend just got the new 3Gs and it is super quick. Also looking forward to the AT&T 7.2 network upgrade. The older 3G phone gets horrible call drops everywhere.. Hopefully the new network (released late 2009 early 2010) will be an improvement..

Let's hope they really come soon with the network update that basically we have financed to them by getting (on some places) a HORRIBLE SERVICE AND TONS OF PROBLEM but paid the regular price as if we were getting the BEST OF THE BEST!

I can't seem to find the day that I switched my business from PHOTOGRAPHY to MORTGAGE COMPANY!!!! oh hell! HERE IT IS! JULY 12 2008!!!

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Michael Johnston This is my fricken site, durrrr Join Date: Apr 2007 Location: Rockford, IL Posts: 2,692 Thanks: 11 Thanked 45 Times in 40 Posts	How AT&T Decides If iPhone 3G Owners Get A Subsidized iPhone 3G S - June 19th, 2009, 02:19 PM #1
	<script language="JavaScript" src="http://adserver1.backbeatmedia.com/servlet/ajrotator/13894/222/viewJScript?pool=13886&type=3158&pos=20&zone=5000"></script> How AT&T Decides If iPhone 3G Owners Get A Subsidized iPhone 3G S After AT&T announced that select iPhone 3G owners would be eligible for a fully subsidized iPhone 3G S the Internet let out a collective sigh of relief. We were told that early adopters would get the better deal and that eligibility status would be updated on the 18th. Well the 18th came, and many 3G owners, including those who bought on day one, were disappointed. So what's the deal here? How exactly does AT&T determine if you get a fully subsidized iPhone 3G S? Well I spent most of this morning trying to figure it out and here's how it works: Your upgrade eligibility is based on a few factors, the most important being when you purchased your iPhone 3G. If you bought your iPhone 3G in July, August, or September, move on to question two. You might be eligible, depending on the next questions. The next most important factor is how much money AT&T gets from you each month. If you pay AT&T $99 or more in revenue, then it's likely that you're eligible for the subsidized price. Bear in mind that this number doesn't include taxes or other fees. If you pay $101.27 after taxes and fees, that's not gonna cut it. AT&T needs to have seen at least $99 go into their own pockets for a majority of your contract. If they've been getting less, you will not be eligible. This is where most people run into trouble. The last factor is whether your account is in good standing. If you miss a lot of payments or do anything else to make AT&T angry, you may not qualify for the subsidy even if the other qualifications have been met. And there you have it. The best way to tell if you're eligible is to check the AT&T upgrade eligibility checker at wireless.att.com. If you have more questions, comments, complaints, whatever, feel free to post them below! __________________ About my iPhone: iPhone & Color: White 32GB iPhone 3GS iPhone Version: Whatever the latest is because I'm crazy like that. Computer & OS: 15" Unibody MacBook Pro + OS X Leopard 10.5 AIM: iPhoneAlley twitter: MichaelJohnston

NewGuy iPA Fanatic Join Date: Mar 2009 Posts: 79 Thanks: 0 Thanked 2 Times in 2 Posts	June 19th, 2009, 02:35 PM #2
	discovered something very similar today when i went to see if i could get a 16gig 3G S. The first shocker was that apparently, here in Michigan we prefer the 32gig. One ATT store had 10 32gigs left and no 16gigs. Next I called several times over the week to make sure the price I was quoted was correct. I had been given the $399/$499 price. OK. I can deal with it (considering I can sell my 3G for $200). I go in. And I am given another price all together $599/$699. Wow. No thanks. I can wait.

thuggedout iPA Fanatic Join Date: Oct 2007 Location: NYC Posts: 95 Thanks: 1 Thanked 1 Time in 1 Post	June 19th, 2009, 03:15 PM #3
	Yeah this subsidized pricing is going to continue to cause a lot a problems for people. If AT&T is deciding on giving the lower price to people that spend more money with them than people that don't, that's not good on AT&T's part. I hope they put clear guidelines for people to go by because If they start discriminating they will loss more customers than they gain. __________________ Free your mind and your iPhone.

NewGuy iPA Fanatic Join Date: Mar 2009 Posts: 79 Thanks: 0 Thanked 2 Times in 2 Posts	June 19th, 2009, 04:07 PM #5
	Exactly. THe only difference with the iPhone is that every one wants it. ATT/APple KNOW IT. Imagine the same thing with those who bought the Instinct last year when it came out this time. Now they want the Pre...gunna pay for it. Or better still the Instinct Touch with full touch interface. It came out a few months later..... insanity. Face it. Cell phones have come to the same cycle that computer technology has (and they aren't that different anymore). Moore's Law wins again.

pilotmike Forum Lurker Join Date: Jun 2009 Posts: 7 Thanks: 0 Thanked 0 Times in 0 Posts	AT&T has no true method - June 19th, 2009, 04:31 PM #6
	I spend over 600.00 / month. I bought several 3G phones in August last year. Make every payment the day the statement prints. Credit rating is great. I am not eligable till Feb 2010. Oh sure I can pay 599/699 if I want one now. HORSESH*T Get it together AT&T before you get a discrimination class action lawsuit.

Beast Rocks the Board Join Date: Dec 2007 Location: In my house. Posts: 159 Thanks: 3 Thanked 1 Time in 1 Post	June 19th, 2009, 05:19 PM #7
	My buddy in New Jersey spends plenty of money with At&T. He and his spouse got a 3G on day 1 together. One got the subsidized price, the other did not.

davidejorgensen Forum Lurker Join Date: Sep 2008 Posts: 7 Thanks: 0 Thanked 0 Times in 0 Posts	I'm surprised with the Upgrade complaints... - June 19th, 2009, 05:46 PM #8
	For the original iPhone users, and now the iPhone 3G users, the complaints coming out around the Upgrade pricing are really amazing. What other mobile platform offers FREE annual software updates giving you 80%-90% of the additional features from the new platform? We got the FREE software update going from iPhone 1.0 to iPhone 2.0, and now from iPhone 2.0 to iPhone 3.0, each one of them really incredible leaps forward. No waiting in line... it's a FREE download from the iTunes Store. The migration is usually error-free and requires no new instruction manuals to read. How many users of other handsets are getting such incredibly powerful upgrades for FREE every year? In my opinion the FREE sofware update offsets any complaints I'd have about the hardware upgrade purchase options.

frannyc28 iPA Fanatic Join Date: Jun 2008 Posts: 81 Thanks: 1 Thanked 0 Times in 0 Posts	June 23rd, 2009, 12:54 PM #10
	Well I found out the reason why I am not eligible for the subsidized price... I FOUND A LOOPHOLE ON THEIR DISCLAIMER and that put me on the 18 months upgrade time frame. I got my first phone with the company when it was Cingular back in 2000. In 2002 I moved to New York from FL. They had to change my number and phone since FL market didn't use the sim card technology and NY had it already. On 2004 they changed their plans and added the rollover minutes crap and since then I have had the same plan. The loophole was simple to find. The contract I signed (actually signed) states that I will keep my voice plan with the same amount of minutes for the same price for the whole duration of the contract. AS LONG AS YOUR CONTRACT LAST. Well... since 2004 my contract was never expired. Every 12 months I upgraded my phone and that automatically EXTENDED my contract for another year. Which LEGALLY means my contract never expired. When I changed to the iphone 3G, and since they figured it out that lots of people were on the same boat I was, they tried to FORCE EVERYBODY TO SIGN A BRAND NEW CONTRACT. But they made a huge mistake... HAVE YOU EVER NOTICED THAT AT&[shi]T REPS NEVER KNOW WHAT ARE THEY TALKING ABOUT? you can call 3 times on the same day and ask the same question and you will ALWAYS get a different response. Well when Apple announced the iphone 3G we had to wait for the actual release date on July 12. At that time it was not clear neither for the customers nor for the AT&[shi]T reps if with the NEW PHONE you were going to be FORCED to change your plan. Every time you call and change something on your plan, the reps are FORCED to send you a confirmation email where basically they copy+paste the notes they leave from your conversation with them. I called a couple of times to make a couple of changes and asked if I was going to have to change or sign a brand new contract with the 3G or if I was going to be able to keep my plan. They told me I could keep my plan but had to change the iphone plan. And sent me the email with the notes. When they tried to forced me to change my plan, since I had the email confirmations stating that they misinformed me they had to keep me on my 1000 rollover minutes, unlimited cel to cel for $39.95 a month and add the new iphone plan with the text messages... Sorry guys if you mislead your customers and forget to teach the dumb monkeys that work for you IT IS NOT MY FAULT... This make them angry and... I AM BACK ON THE 18 MONTHS UPGRADE TIME FRAME ALL OF A SUDDEN! They made the same mistake this time and told me and sent me emails confirming that I will not need to change my plan if I upgrade in Dec. to 3GS... Will they move me to a NEVER UPGRADE time frame this time????!