AT&T reacts to iMessage, removes lower tier SMS plans | Hacker News Reader

AT&T reacts to iMessage, removes lower tier SMS plans

engadget.com

31 pointsajg197717 comments

Quite the way to show some good-will and consumer choice in light of all the negative press re: TMO merger.

Just switch to Google Voice.

Yeah, I did that a long time ago. Along with iMessage, I can communicate with almost anyone in the world for free. AT&T? Bah, who needs 'em.

It's really quite funny: mobile operators are deadly scared of becoming little more than "dumb (radio) pipes" for data, yet every single move they do is so wrong on so many level it only ends up with more customers using them solely as dumb data pipes.

I disagree, at least regarding this move. Carriers know the tendency is inevitable, and they have no interest competing with free. They're doing this to milk it while it lasts, and then they'll gladly let Apple pay for the messaging service while they charge for the data. You're still tied to them anyway.

You're probably right, but the carriers (primarily AT&T) don't need to be such dicks about it.

They can't help it, it's their nature.

I'm reminded of this every time I leave a voicemail and have to listen to the lengthy instructions on how to use it -- not to be informative, but to up your talk time.

I'm still peeved that Google Voice refuses to deliver MMS or even notify you that they won't be delivered. Right now they just drop into a black hole. That's what's keeping me from using it exclusively. There's no way I can tell all my friends and family, "send me SMS, but all pictures have to be emailed." they'll never remember.

I wonder if my $5 for 200 msg will be grandfathered like my unlimited data plan. Its the perfect amount since with having other communications platforms I only use around 180 sms a month.

If this is a reaction to iMessage, I wonder if Verizon will react similarly (and carriers overseas, for that matter). I also wonder if we'll see any iPhone-specific targeting (e.g. allowing cheaper/optional message bundles for Android phones, but requiring iPhones to sign up for a data plan that includes a large/unlimited SMS bundle).

Why couldn't this just as well be "AT&T reacts to Google Talk"? I know that ever since me and all my friends got Android phones, I've stopped using SMS entirely and only use Google Talk.

Because iMessage falls back to SMS and it's the SMS app everyone with an iPhone uses. So it's easy for people to get started. Certainly many people will start using it unknowingly. Convenience and zero-cost signup is powerful. Carriers are stupid, they can't find decent solutions but they can certainly see trouble ahead.

Wouldn't that create the reverse incentive for AT&T though? Jack up prices so that people get used to free iMessage but when get penalized heavy when they use those heavy messaging habits on someone without an iPhone?

They could raise prices in general, raise the minimum plan or have a pay-per-use ($0.2) like you suggested. I doubt there can be a acceptable price hike that can offset the decrease in usage volume.

Ultimately, these are stop gap measures and doesn't stop their decreasing ARPU from losing dollars to 3rd party services not run by them - text, overseas calls, apps, and media (songs, movies, ringtones), even voice calls and location-based services. Carriers have been projecting an increase contribution of ARPU from data services and text is a major component of it.

Anyway, raising prices to beat a downward trend is dangerous. Could make it worse.

The majority of smartphones sold on AT&T are iPhones. Had it been Verizon to do this then it may be attributed to Android. That said, AT&T could be reacting to the Facebook Messenger app. No one really knows.

Cant wait for iOS 6 which includes VOIP so AT&T can remove all but their unlimited calling plan with forced international package too.

With Facetime, iOS4 already has VOIP (much like iMessages, limited to other iPhones — or at least macs for facetime)

Except you have to be on a wifi network. Skype works well enough on 3G, though, and connects to Android, laptops, whatnot.

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