Over the past couple of weeks, I have had two phone conversations with representatives from AT&T’s “Office of the President”, each in response to my constant complaining over AT&T’s new iPhone tethering charge.  The case that I have made from the beginning has been that AT&T is unjustified in charging an additional $20 for tethering on top of the $25 charge for 2GB of data.  Since we will be capped at 2GB of data, and charged an additional $10 for each additional GB, why does AT&T care about how much data we use, and how?  If I use all of my 2GB of data on my iPhone using Safari, or Mail, or any other app that uses the 3G network, it would be EXACTLY the same as using Safari, or Mail on my MacBook Pro.

AT&T claims that tethering my iPhone to my laptop will use more data.  This claim is ridiculous, and insults the intelligence of AT&T customers.  I was shocked when “Sophia” from the Office of the President made this claim.  It leaves me wondering if “Sophia” is an idiot, or if AT&T thinks its customers are idiots.  To be fair to Sophia, I’m going to go with the latter.

If I know that my data plan will be capped at 2GB, and since AT&T gives me the means on their website to track my usage, why would I use more data on my laptop through tethering than I would using 3G directly from my iPhone?  This logic was lost on “Sophia”.  She merely restated her faulty claim that I would use more data on my laptop via tethering than I would by using my iPhone directly.

Most of the time, I’m using a wifi network.  I would only need to tether my iPhone when I’m not within range of a wifi network.  Since 3G is nowhere near as fast as a broadband connection such as a T1, DSL, or cable connection, why would I use tethering as my default connectivity?  I have discussed this with several other AT&T customers who also use an iPhone, and who are also always on the go with their laptops.  All of them acknowledge that their 3G usage would be limited to only what they need, and would not be used for general internet connectivity.  Either way you look at this, why should AT&T care?  They’re going to charge an additional fee if we go over 2GB.

What this is REALLY about is AT&T’s desire for yet another revenue stream.  They know that we love to get the most out of our iPhones, and that we’re more likely than anyone else to use 3G data in large amounts.  The iPhone was the first phone I had that is actually capable of doing everything that was promised.  My last ‘smartphone’ was capable of sending email, and had limited web capability, but it was pretty much useless for those things, so I cancelled my data plan.  Then, the iPhone arrived.  I send, and receive several email messages from my phone on a daily basis.  I also have the ability to look up something on the internet whenever the mood strikes me.  Apple has created a great product only to have it be hobbled by AT&T’s greed.

AT&T’s stated reason for adding the extra $20 fee for tethering is bullshit!  If you agree, make sure to complain.  Email Randall Stephenson, the CEO of AT&T at:  rs2982@att.com.  Within a few business days, you’ll receive a call just like I did.  Make sure to tell the rep that you know that AT&T is just being greedy, and that you don’t accept their lame reason to charge for tethering.

When I got up this morning, I checked my email, and found this message from Apple:

Maybe I’m receiving my iPhone early because Apple wants to try to avoid the activation snarl that will ensue on Thursday?  What ever the reason, getting my iPhone a day early is greatly appreciated.  Last night, I updated my iPhone 3G to iOS 4.  I love the new folder feature, and the unified inbox.  I’m disappointed that I cannot have a customized home screen background.  According to an email sent by Steve Jobs to a Cult Of Mac reader, the customized home screen would cause performance issues.  Hmmmm…  Maybe, but I think I would have preferred having the choice to use that feature or not.  How does Steve explain the fact that jailbroken iPhones, and iPods have had this feature for quite sometime without any performance issues?  In the end, it’s not that important.  I’m just tired of the bland, black screen.

I’m sure that this isn’t surprising, but if you tweet enough about your displeasure with AT&T’s wireless service, you will inevitably be contacted by someone from AT&T.  I’ve been contacted by five AT&T employees, all responding to my repeated complaints about the quality of their network, or their latest act of evil — charging an extra $20 for iPhone tethering.  iPhone customers in the U.S. have been waiting almost a year to enjoy what iPhone users in other parts of the world have enjoyed almost from the initial release of iPhone 3.0.  The iPhone gives customers the ability to attach their iPhone to their Mac or PC, and use the iPhone’s 3G connection to access the internet without the need for a 3G card.  It’s a great feature, and I’ve waited anxiously for the day when I would be ALLOWED to use it.  The iPhone has had the ability to tether since the first day that iPhone 3.0 was released.  AT&T has stood in the way citing concerns about network capacity.  Hey AT&T, here’s a thought…  Why not beef up your network BEFORE you start selling the iPhone?  In case you’re not familiar with AT&T’s new iPhone data plans, AT&T announced this week that they are doing away with the unlimited data plan that iPhone users have enjoyed for nearly three years.  They’re replacing it with a $25/month plan that limits customers to only 2GB of data per month.  It’s true that most customers don’t come anywhere near 2GB per month (myself included), but where the evil begins is when AT&T insists on charging another $20 for the privilege of tethering.  Why should AT&T care how we use our 2GB of data per month?  Why charge another $20?  My bill is already over $100 month.  In addition, I also pay $150 per month for AT&T’s U-Verse service.  How much more of my money does AT&T need?

Tonight, I was contacted by @ATTJulia on Twitter.  She explained that the extra $20 charge for tethering is standard across the industry.  That may be true, but it does not excuse AT&T’s greed.  That’s what this is.  Normally, I’m a free market capitalist all the way.  I have no problem with being paying a fair price for quality services.  However, this extra $20 fee is nothing but naked greed.  Clothing that greed with a flimsy excuse that the extra charge is standard is not only lame, but it’s insulting that AT&T would believe that their customers would accept it.

The iPhone is a revolutionary product.  It’s the best smartphone on the market.  The sheer sales numbers over the past three years is proof of that.  What AT&T is doing is taking that wonderful product, and using it for their own greedy goals.  They have diminished the iPhone’s phenomenal user experience by shackling it to their sorry data plans, and their lousy network.  I call on every iPhone user in the U.S. to demand that AT&T treat us fairly, and stop trying to find more ways to syphon more and more money from us.  If you use Twitter, message AT&T, and voice your complaints:

@ATTCustomerCare @ATTJohnathon @ATTChrisL @ATTJulie

When you call customer care, complain.  Email AT&T’s executives and tell them you don’t like the data plan change.  Blog about your outrage.  Make your voice heard.  As it stands, I won’t be using the new tethering service.  I refuse to pay AT&T an additional $20 to be allowed to use a feature that my iPhone has had for almost a year.

I think this story may serve as more proof that the iPhone is coming to Verizon soon.  Because of their lousy network coverage, and foot dragging on tethering,  AT&T knows that there are a lot of customers who may leave for Verizon.  It’s something that I’m contemplating myself.  AT&T Wireless CEO Ralph De La Vega recently was reported to have stated that he’s not worried about customers leaving.  His reason was that these customers are currently shackled to AT&T by contracts.  Wow!  What a great reason for customers to stay!  They can’t possibly want to stay because of the “great” network coverage right?  Oh, and tethering.  That’s a great feature.  What’s that you say?  The network isn’t that great?  We STILL don’t have tethering yet?

Because of AT&T’s total failure to live up to the iPhone’s full potential, I am forced instead to use another service for my wireless data needs.  In March, I signed up with Clear for 4G coverage when I don’t have a WiFi network available for my laptop.  So far, it’s been really good service.  There are a few areas in Dallas/Fort Worth where I can’t get online, but the service is still relatively new to DFW.  I’m content to allow Clear to continue rolling out new towers.  I just wish that I could have been using my iPhone for data service.  Thanks to AT&T, I have another bill to pay.  Of course, I’m sure that if AT&T did roll out tethering service, they would charge an abusively large fee for it.  Right now, I can get a 3G card from AT&T to use with my laptop, but they want $70 a month for unlimited data, whereas, I’m only paying $40 for Clear for unlimited 4G service.  Oh, and Clear gave me $15 off the first two months.  AT&T doesn’t do that.  What’s more, the early termination fee from Clear is only $120, and it drops over the course of the two year contract.  AT&T’s $325 fee for early termination does not.

Cult Of Mac reports on statements made by AT&T Wireless CEO Ralph De La Vega that he’s not worried about iPhone customers moving over to Verizon.  His reason for not worrying?  It’s the difficulty of switching carriers because of the family plan contracts.

Instead of worrying about customer service, and fixing his lousy 3G service, and giving us the ability to tether our iPhones, and use them for internet service, Mr. De La Vega instead focuses on his customers being chained to AT&T by a contract.  Mr. De La Vega doesn’t seem to understand that providing great service should be his primary concern.  This is the man who called all iPhone users “data hogs” several months ago. I guess I should have expected this kind of idiotic statement from him.

Link to the Cult Of Mac story is below:

AT&T: Difficultly Switching iPhone Carriers Will Protect Us from Verizon | Cult of Mac.

This Friday, I’m going do my best to use only my iPhone for all internet and email.  If you have an iPhone, or any other smartphone on AT&T’s network,  you should do the same.

Earlier this week, Ralph de la Vega, the CEO of AT&T Mobility began a ‘blame the customer’ policy to address the complaints about the dismal failings of his wireless network.  Given his stance, I think that we, as customers, should teach this man a lesson and show him just how pissed off we are, and also how important we all are to the success of his company.  It’s absolutely unacceptable for AT&T, or any other wireless service provider to sell a product (iPhone, Blackberry, etc.), and then bitch and whine about the customers actually using those products with their unlimited data plans.  What Mr. de la Vega needs to understand is that the customer is the most important element of his business.  If he can’t meet the obligations that his company has to its customers, then he should sell off the company to someone who can meet those obligations.  I’m paying an additional $30 per month for UNLIMITED data, and $5 for a paltry 200 text messages on top of the charges for my rate plan.  I’m also an AT&T U-Verse customer.  All told, I’m paying AT&T almost $300 a month!  It’s insulting that Mr. de la Vega would even think about blaming the customers.  Therefore, we should make sure that he knows just how much of an impact we are capable of having on his network.

For more on this, check out the article from TUAW linked below:

Watch out AT&T: Operation Chokehold is coming.