Katie Marsal
Currently, most iPads and other tablets bought by consumers are Wi-Fi-only. Apple charges a $130 premium for iPad models with cellular connectivity, to offset the cost of 3G and 4G LTE radios, while most other tablet makers charge a $50 premium for cellular-equipped models.
But Glenn Lurie, president of emerging devices at AT&T, told Macworld he believes that as the cost of cellular radios drops, many tablet makers will sell only models with cellular data connectivity built in. That would give users the choice of whether or not to subscribe to a data plan, without needing to pay a greater up-front cost for hardware.
"All devices should have all capabilities built in from the beginning," Lurie said.
A big step toward universal connectivity could come this year, as major U.S. carriers are gearing up to offer new data plans that can be shared across multiple devices. For example, a user could pay for one AT&T data plan, and have their allotment available via both an iPhone and an iPad.
AT&T mobile business CEO Ralph de la Vega told CNet this week that his company intends to offer a "family data plan" in the near future, allowing consumers to buy an allotment of data that can be used by multiple devices. Though de la Vega said he's "comfortable" with the plan AT&T will offer to its customers, he declined to give any specifics as to how it will work or what the pricing model will be.
Another barrier that remains is the price of radios: Cellular HSPA+ radios compatible with AT&T's 3G network now cost about $30 on average. But 4G LTE radios, like the ones found in Apple's new iPad, are still as high as $70.
Malcolm Owen
Amber Neely
Christine McKee
Chip Loder
Marko Zivkovic
29 Comments
Thinks=Wants.
AT&T also thinks it can get away with its current business model.
Hee hee hee…
1) I can see that eventually happening after we get HW that can handle all the available bands for LTE and if the price drops significantly. Licensing fees are still a major barrier outside of HW costs. 2) Apple is surely making a profit on their premium model iPads but it's not excessive. Just look t what a cellular USB stick cost you off contract. I remember paying $350 for mine. I think other tablet makers are selling at or slow cost in an attempt to compete with the iPad.
AT&T also thinks it can get away with its current business model.
Hee hee hee…
The handwriting is on the wall. With the launch of the iPhone, total control was removed from the carriers over the handset. Everything else will follow. A universal radio standard would be nice too.
I think Apple should put up its own Wi-Fi networks on every street throughout each city in which they have a retail store. Then expand iMessage to include VOIP to call regular phone numbers like Skype. If they did that we would see very competitive pricing from the cell carriers.