The Devil is in the iPhone 3G Details

As more details about the iPhone 3G service plan emerges, the less attractive the darn thing becomes. And that's without even taking into account the new activation process that must take place in the store, which eliminates buying online and probably puts a major crimp into unlocking.

For example, as I indicated yesterday, the combination voice + data - and I've found out since Monday that you have a data plan, despite them listing the plan separately -is $10 more monthly than previously. Thus, you save $200 on the phone upfront, but pay $240 extra for the plan. I suppose someone smarter than me could take inflation into account to figure things out even more precisely.

And that's for a consumer data plan. An Enterprise data plan will result in a user paying $25 more per month for the service.

Oh, and let's not forget: there's no SMS bundle anymore. The old plan had 200 messages; you have to pay $5 for 200 SMS messages now. So even more cash is sucked out of us users. With the above difference in the service plan pricing and SMS plan, you're talking about an additional $160 over the original iPhone, even taking the $200 subsidy into account. Ouch!

That's the obvious. Leaked AT&T policy documents seem to indicate even more devilish details.

Upgrade Eligibility and Qualified Upgrade Pricing

Upgrade eligibility will be determined based on standard upgrade eligibility rules. Customers must be upgrade eligible to receive the qualified upgrade pricing. However, not all customers will be qualified upgrades. AT&T has not determined the price of the 3G device for non-qualified upgrades.

That usually means you have to be out of contract, or at least darn close enough to get them to waive it so you can get a new phone. Seems silly for them to restrict purchases; you'd think just getting people to sign onto a 2-year contract extension would be enough.

However, based on this text:

However, all postpaid 2G iPhone customers in good standing are upgrade eligible, so these customers will qualify to upgrade to a 3G iPhone when it is available.

What this means is even if you are in the middle of a contract with your 2G iPhone, you'll still get the discounted upgrade pricing ($199 for 8 GB, $299 for 16 GB).

Also revealed in the leaked memo: preparations for logistics, including security:

Security will be provided for locations requesting armed police or unarmed, uniformed guards.

Yeah, well since users can't buy online, anyone who wants these things are going to have to line up. As I said previously, I'm not willing to wait in line for any electronic device, no matter how tempting. Besides, all the prior information about the new pricing has me rethinking buying an iPhone 3G.

Here's a copy of the leaked document (.PDF). Plenty of interesting info; take a peek.