AT&T, Apple Unveil iPhone Rate Plans

Apple and AT&T clearly want buyers of the new iPhone to do a lot of wireless Web browsing and e-mail.

The iPhone maker and wireless carrier Tuesday announced three service plans for the landmark device, all with unlimited data.

The decision to package unlimited data service with voice plans starting at $59.99 a month is a sharp departure from the usual approach.

Often wireless carriers try to persuade voice customers to add extra data service plans to their accounts. But Apple AAPL and AT&T T are using a bundling strategy to stand out.

"They've simplified the process down from a smorgasbord of options that consumers often have to make" when signing up for a cellular plan, said Michael Gartenberg, an analyst with Jupiter Research.

The iPhone goes on sale at 6 p.m. local time Friday across the U.S. at AT&T and Apple retail stores and at Apple's online store.

The iPhone will come in a 4-gigabyte model for $499 and an 8-gigabyte model for $599. Both versions require a two-year service agreement with AT&T.

Individual plans are priced at $59.99 for 450 minutes, $79.99 for 900 minutes and $99.99 for 1,350 minutes.

The plans have a one-time activation fee of $36. Family plans also are available.

All plans include unlimited data for e-mail and Web access, 200 text messages, Visual Voicemail, rollover minutes and unlimited mobile-to-mobile calls.

Apple and AT&T want to make sure that, out of the box, the iPhone provides all the features Apple has been promoting. They include Yahoo YHOO e-mail pushed to the device, access to Google GOOG maps and being able to zoom in and out on Web pages.

"They're making sure that anyone who buys an iPhone gets the full data experience," said Kevin Burden, an analyst with research firm Telephia.

The iPhone combines a smart phone, a widescreen iPod with touch controls, and an Internet communications device with desktop-class e-mail, Web browsing, searching and maps.

Aside from its unique multi-touch screen, the iPhone features a 2-megapixel camera and a 3.5-inch widescreen color display for viewing photos and videos.

The Visual Voicemail application lets users see a list of their voice mails, decide which messages to listen to, then go directly to those messages without having to wade through the prior messages.

The initial iPhone works on AT&T's Edge wireless data network, which is a "2.5-generation" network that isn't as fast as other third-generation, or 3G, networks. The device also can access Wi-Fi wireless networks. AT&T has a multiyear exclusive deal to offer the i- Phone in the U.S.

By getting customers comfortable with wireless Web browsing as a standard feature, Apple and AT&T could be opening the door to new services down the road.

Those services could include wireless downloads of music from Apple's iTunes service, mobile TV, GPS navigation and downloadable applications.

"They're paving the way for up-and-coming applications," Burden said.

The iPhone service plans are comparable in price to those available from other wireless carriers, Gartenberg says. Unlimited data adds about $20 a month to the cost of the service plan, he says. The mid-range plan of 900 minutes talk time will likely be the most popular, he says.

It was important for Apple to bundle the data service because the online features are intrinsic to the i- Phone experience, Gartenberg says.

"The more consumers use these extended features, the more comfortable they're going to feel about paying $500 or $600 for this device because it amortizes the cost over these different functions," he said.

New iPhone users will be able to activate the devices at their home or office, skipping the usual in-store wait.

Apple's iTunes software running on a PC or Mac computer can guide users through the steps to choose a service plan, authorize their credit card and activate their iPhone.