i do now i don t

i do now i don t
The 16 GB version of the iPhone 3G S, the model released Monday, goes on sale through AT&T (NYSE: T) for $199, the same price as the iPhone 3G, which now drops to $99. Attractive prices, definitely. But, those prices are only for new customers to the carrier, those who want to upgrade will have to pay much more. The message: once AT&T has you, the heavily subsidized ride is over.
Those who are not coming to the close of their original contract will have to pay an additional $200 for the 16GM model, or $399 in total, and another $300 for the 32GB version, or $499. Not so attractive. For those who don't have an upgrade account, or don't want to commit to a 2 year lock-in with AT&T will have to pay $599 for the 16GB iPhone 3G S, and $699 for the 32GB version. Some AT&T iPhone owners believe the pricing is a "slap in the face to long time loyal iPhone customers," as Information Week reports, quoting form a disgruntled user who switched to AT&T from T-Mobile to get the device, and who urged unhappy customers to complain, complain, complain to the networkThe upgrade issue represents a real problem for AT&T, and doesn't bode well for a trend that's clearly emerging. As more carriers try to lure new customers with hot new phones, how do they keep their old users happy, without having to pay out more to subsidize their upgrade, and in effect raise the acquisition cost per consumer? AT&T spokesperson Mark Siegel told Information Week, "What we're trying to do is to be fair," said. "Customers in the U.S. enjoy very, very low device prices. The financial models of wireless are built on that. If you want to change your device in midstream, we want to help you do that, but you have to look at the economic realities." Of course, in a market where the competition is only getting more intense, what customer looks at the "economic realities" of their wireless provider? Judging by many of the comments on AT&T's own support forum for its iPhone users, customers believe its their right to be rewarded for their loyalty, regardless of committing themselves to a 2 year contract, since as some pointed out, how do you know when a new model phone is going to come out?
Meanwhile, there are two other issues that AT&T iPhone users are unhappy about. Though the new iPhone supports MMS and tethering, neither of these two features won't actually work on launch. MMS is expected to launch late this summer, but no word on when tethering will be available. According to PC World, AT&T said there was no MMS yet as they were "finalizing internal system upgrades", or according to Boy Genius Report, "AT&T has to manually remove all the "Opt Out MMS" codes on each account before MMS can work." As for tethering, AT&T is reportedly working out a data plan costing in the range of $60-$70 that would permit unlimited tethering. But as PC World reports, could the carrier also be worried about the "strain" such a feature could put on their already shaky network already bogged down by data-snarfing iPhone users and 3G notebooks?