Huge numbers of irate iPhone owners voiced their displeasure concerning the upgrade policy that alienated them from getting the advertised $199 and $299 price for the upcoming iPhone 3GS due to launch Friday.  Users spread the word through Twitter, Facebook, Myspace, and various other social networks.  AT&T has been a top trending topic on Twitter for the last couple weeks since Apple’s announcement of the iPhone 3GS at WWDC.  AT&T has apparently heard the mass plea for a better solution to subsidized pricing.

While I’m glad to see them listening to their customers, I would like to see them take a different approach across the board with their upgrade policy, not just with the iPhone.

The following video also addresses some other concerns AT&T customers have.

An Update for Our Customers

Some customers have had questions about our plans and policies for iPhone 3G S, and we’d like to provide you with answers. We’d also like to announce a change to the date when some iPhone customers are eligible for our best upgrade pricing to iPhone 3G S.

Pricing

Importantly, we want our customers to better understand our wireless device upgrade program. Like most U.S. carriers, we offer a variety of phones that we sell below our actual cost when customers agree to sign service agreements. In general, the more a customer spends with us, the quicker they become eligible for a price break on a new device. For example, iPhone customers who spend more than $99 a month per line with us generally are eligible for an upgrade between 12 and 18 months into their contract.

We also currently offer early upgrade pricing only for iPhone 3G S and iPhone 3G.

All of that said, we’ve been listening to our customers. And since many of our iPhone 3G customers are early adopters and literally weeks shy of being upgrade eligible due to iPhone 3G S launching 11 months after iPhone 3G, we’re extending the window of upgrade eligibility for a limited time.

We’re now pleased to offer our iPhone 3G customers who are upgrade eligible in July, August or September 2009 our best upgrade pricing, beginning Thursday, June 18.

If you’re one of the many customers who will benefit from this change, please note that our upgrade eligibility tools will reflect this change on Thursday, June 18.

We invite you to come to our stores beginning Friday during normal store hours, although please be aware that customer demand may exceed supply in some of our stores. You may also preorder online on June 18 at www.att.com/iphone, and your iPhone 3G S will arrive in 7 – 14 days. Or you can purchase iPhone 3G S at Apple’s retail and online stores, as well as at other popular retailers.

If you’re one of the customers who benefits from this change, and you’ve already preordered from an AT&T store, we’ll adjust the price of the device when you pick it up. If you benefit from the change and you pre-ordered from AT&T online, we’ll send you an e-mail and issue you a credit.

If you pre-ordered an iPhone 3G S through Apple’s online store, your upgrade eligibility will be reassessed based on AT&T’s new upgrade policy for iPhone 3G owners. If you are eligible for the lower price, Apple will issue you a credit for the difference as applicable.

So, what if you still aren’t eligible for our best upgrade pricing and you still want iPhone 3G S now? You do have options:

• You may qualify for the iPhone 3G S early upgrade price of $399 (16GB) or $499 (32GB).
• You can pay full retail—and not have to sign a 2-year contract—at $599 (16GB) or $699 (32GB).
• You can wait until you’re eligible for our best upgrade pricing. We invite you to check your upgrade eligibility by visiting www.att.com/iphone, calling *NEW# (*639#) on your AT&T device (we’ll send you a text with upgrade information), or visiting any of our over 2,200 stores.

If you want more details on our pricing and upgrade policy, check out our FAQs. And as always, you may visit one of our stores to talk with a representative.

In Summary

We’ve listened to our customers — and hope our response helps answer some of your questions and concerns.

We are incredibly proud to be the U.S. carrier for the new iPhone 3G S and will work around the clock to be ready on June 19 to serve customers who are interested in the fastest, most powerful iPhone yet.

Some very crafty crackers have figured out a way to circumvent Apple.com in order to purchase the new iPhone 3GS and have it delivered right to your house on July 19th, with free shipping to boot.  The process involves getting an add on for Firefox and using a little click and trick. This process does not allow you to get the subsidized price but it does let you skip right by having to sign up for a 2 year AT&T contract.  Note that this is still a carrier locked phone, but in theory you would be able to go month to month with your plan.  You can fully process your order including charging your card but I wonder if the Empire AT&T will figure out what is going on and get your orders canceled if they see there is not a contract associated with the sale.  You can find full instructions at iTalkiPhone.com

I don’t condone any of these actions but I’m really interested to hear how it goes if someone not related to Rotilda decides to try.  Strictly for information purposes.  If you try this, come back and leave a comment on how it worked.

The recent news that current iPhone 3G owners will not be able to upgrade to the 3GS at the subsidized pricing has customers in an uproar all over the US and UK.  A twitition (Twitter Petition)  has been created for both AT&T and O2 in order to sway the respecting companies to revisit their policy.  I myself would like to see a change to the current pricing but I do not think they will.

According to the contract that all iPhone 3G customers had to agree to, you are not eligble for a upgraded subsidized phone until 18 months into your 2 year agreement.  AT&T’s stand on this is that this policy is no different then any other subsidized phone contract they sell.  They say that they will not treat the iPhone differently then any other device in their lineup.  Wait, you won’t treat the iPhone any different?  Why then do we pay premium prices for text and data when you can get the same service on many other phones they sell for a much lower price?  I call BS on this excuse.  If you want to treat the iPhone no different, then do exactly that.  Offer the same rate plans availble to other phones so that iPhone owners are not taking it in the front as well as the rear.

Check out the twititions and sign if you feel the need.

AT&T twitition

O2 twitition

Whether it was Apple’s, AT&T’s, or both’s decision to basically alienate the fanboys early adopters, which made the iPhone 3G such a big hit, the taste left in their mouth is quite sour, and that is putting it lightly.  The many hours spent standing in line waiting in the hopes that your local AT&T or Apple store wouldn’t run out before you reached the counter were only faint memories until the news today.  Finding out that because you were such a loyal minion to the Apple machine would only doom you (your wallet) in the coming June has not sit well with current iPhone 3G owners.   AT&T has announced that customers who took advantage of the subsidized price of the iPhone 3G (mostly brand new customers) would not be eligible for the subsidized price of the new iPhone 3GS.  Last year, an exception was made allowing owners of the OG iPhone to purchase the 3G at the subsidized price; no such exception revealed this time around.  Basically, if you were one of the smart ones, those who decided to skip the 3G in wait of the now 3GS, are the only current AT&T iPhone customers being offered the $199 16GB and $299 32GB iPhone 3GS, otherwise you are forced to pay the full price of $399 and $499 respectively.  Current iPhone 3G owners, myself included, are in an uproar about this.

The lack of presence from AT&T heads and obvious disdain from Apple regarding the unpreparedness of AT&T for major features such as MMS and tethering at the WWDC points towards the root of the problem.  Follow the smell and you will find the rotting carcass.  AT&T may be writing themselves out of the upcoming iPhone exclusivity contract that should be coming up in the next year or so.  AT&T must remember who runs the show here, Apple their customers!  If AT&T casts a dark shadow on Cupertino they have all the clout to take there ball and play in another stadium, IE. T-Mobile or Verizon.  As a loyal iPhone user I would have no problem moving to another carrier next June when my AT&T contract is up.  They must realize that cell phone data and bandwidth is an intangible product that can be attained from a number of other suppliers.  The iPhone on the other hand is a physical device that can only be purchased from one company, Apple.  iPhone users that have grown to love and depend on it’s functions will follow it anywhere it goes.  Where will you, AT&T, be left at that point?  The iPhone has made what the modern day AT&T Mobility is; when that is gone what are you left with, just another cell provider with an array of sub par devices.  Don’t even get me started about the mandatory iPhone plans, that’s enough for an entire other article.

Wake up and smell the roses AT&T; start treating your customers with the respect they deserve or have fun watching your subscriber base drop 30% in the course of a couple months.

For Brutus, as you know, was Caesar’s angel.
Judge, O you gods, how dearly Caesar lov’d him!
This was the most unkindest cut of all;
For when the noble Caesar saw him stab,
Ingratitude, more strong than traitors’ arms,
Quite vanquish’d him: then burst his mighty
heart. . . .

Julius Caesar Act 3, scene 2

William Shakespeare

Today at WWDC Apple is announcing all the newest and greatest products. One of the big points of interest (should have been long ago) is MMS support finally coming to the iPhone. It was announced that on OS 3.0 launch nearly 30 carriers will support MMS on the iPhone. Interestingly though, AT&T was left off the graphic showing all the carriers and it was announced that later this summer they will finally allow MMS. Why would they not be ready for this? Would it cripple the network? Come on man.