Leaked memo reveals that AT&T will no longer subsidize tablets

Leaked memo reveals that AT&T will no longer subsidize tablets
According to a leaked AT&T memo, the days of signing a 2-year contract and receiving a subsidized price from the carrier to purchase a new tablet are over starting on Sunday. The only pricing option available for those buying a tablet from AT&T is the carrier's no commitment pricing. Those who purchased a tablet before Sunday and signed a 2-year contract can still sign up for Mobile Share for $10 as long as they fulfill the two-year term of the contract.

Now, those buying a tablet through the nation's second largest carrier have a choice of DataConnect plans including 250MB of data monthly ($14.99), 3GB of monthly data ($30), 5GB of monthly data ($50) or they can be added to a Mobile Share account for $10 a month. Mobile Share is set to start on August 23rd.

AT&T joins Verizon as Big Red had already pulled subsidized pricing from its tablet lineup with the arrival of  its Share Everything plan. For AT&T though, the affect of going cold turkey on tablet subsidies is a lot less painful than for Verizon customers. After all, AT&T's tablet offerings consist of the Apple iPad which never was offered with a subsidized 2-year contract, a refurbished Samsung GALAXY Tab 8.9 LTE, the Pantech Element and the HTC Jetstream.

Do the moves by the number one and two carriers in the U.S. foreshadow an eventual end to subsidies on new phones, or is that something that not even Verizon or AT&T can risk?

source: Engadget



1. sadaff

Posts: 12; Member since: Jul 18, 2012

In India we don't get any phones or tablet subsidized! :|

2. snowgator

Posts: 3621; Member since: Jan 19, 2011

I think this just shows how the Tablet market just hasn't taken off like it was predicted to. The fact that they are being cut from being subsidized kinda shows they are not turning huge profits from tablet plans. This market is still waiting to live up to expectations.


Posts: 1459; Member since: Mar 09, 2010

Tablet sales are fine, but tell me what wise man will pay 300-400.00 for a tablet and pay 20-30.00 a month like the carriers wanted for 2 years. 300.00 buy in and $39.95 monthly subscription fee for 2 years cost you minimum 1200.00 for a product that you could have paid 599-699.00 for at most. Save 500.00 and just buy Wifi versions from Best by or Amazon and call it a day!

4. tigermcm

Posts: 861; Member since: Sep 02, 2009

I let go of my unlimited data plan I had with Sprint for my mifi or whatever it was called since i wasnt using it much. now that tablets are out I'm regretting it

6. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 2010

Or pay $10/month on VZW and share your data plan when WiFi is not available.

5. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 2010

Can you imagine how AT&T would be behaving if it had been able to acquire T-Mo? No subsidies on tablets would have been extended to no subsidies on phones. If you buy a tablet on a contract, a subsidy should be part of the deal. Another middle-fingered wave from AT&T.

7. Jphones

Posts: 258; Member since: Feb 10, 2012

no they wouldnt end subsides if they didn't want everybody to start a new carrier. I mean we all know smartphones especially highend actually cost about 600-700 range. Anybody paying that with a 2yr contract?noooooooooooooooooooooooo Ebay, Amazon, craiglist would be where everybody buys their phone no one would buy a new phone from a carrier they'd get it somewhere cheaper and just activate it.Carriers would lose millions if they ever did that.

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