Apple announced the launch of their brand new mobile phone model – iPhone 4 few hours back with some amazing features and decent pricing. Individuals and families can also take advantage of great pricing plans for iPhone 4 with AT&T.

Combining voice calling and data use, pricing begins as low as $54.99 a month with individual plans or just $89.99 a month – providing two lines – with AT&T FamilyTalk plans.

Steve Jobs announced AT&T’s “incredibly generous upgrade offer” during his keynote. What it actually means is, current AT&T customers eligible for an upgrade sometime in 2010 can buy the iPhone 4 on its June 24 launch day for $199 (16GB) or $299 (32GB)—if they agree to sign another two year contract.

Customers can pre-order Apple’s newest phone from their local AT&T stores or online starting June 15, with it available in-stores June 24. Customers who order from AT&T in advance have the option of shipping their pre-orders directly to their doors.

Apple also introduced an 8GB iPhone 3GS model on Monday, which will be sold for $99. AT&T’s remaining 16GB and 32GB 3GS models will cost $149 and $199 (with a two year contract), respectively, while supplies last.

AT&T Data plan for iPhone 4 – the other side of the coin

There is another way of looking at this “incredibly generous offer” of AT&T. The absolute minimum total cost of an iPhone 4 over the two-year AT&T contract is $1,674.52 before taxes, regulatory and miscellaneous fees. This is for just 250MB per month data plan, 450 peak minutes per month, 200 text messages and zero paid applications or downloads.

If you are someone who opt for premium data plans for tethering and other advanced options, then you would feel greater pinch in your pockets. Single subscribers who sign up for the DataPro plan, regularly buy apps and accessorize their iPhones can easily spend $2,500 to $3,000 over the next two years.

AT&T plans for iPhone 4

Besides the upfront cost of the iPhone 4, you’ll need to sign a two-year agreement with AT&T and consider the following:

  • AT&T Voice Plan: AT&T’s voice plans start at $39.99 for 450 anytime minutes and range up to $119.99 per month for unlimited family plans with two lines of service. Additional family plan users can be added for $49.99 per month.
  • AT&T Data Plan: Existing AT&T subscribers who already own iPhones can continue to get to unlimited data for $30 per month. However, new subscribers will have to choose between 250MB per month for $15 or 2GB per month for $25. Additional MB/GB are available if you run over this limit and your bill can go well north of $30 if you stream a lot of music or video. Those planning to take advantage of the iPhone 4’s many HD video features should budget some extra money each month for overage fees. AT&T is offering some flexibility however and those who are usually connected to WiFi networks at home and work shouldn’t have too much trouble. You can see more details about AT&T’s new iPhone data plans here.
  • AT&T Tethering Fee: iPhone 4 owners (as well as those who upgrade their iPhone 3G and iPhone 3GS units to iOS 4) will be able to use their devices as mobile modems for their laptops. AT&T will charge $20 per month for ‘tethering’ your iPhone to your laptop. Once connected to your laptop, it’ll be much easier to blow through your 2GB cap if you’re a new subscriber. This service is optional and only a minority of iPhone 4 users are expected o sign up for it.
  • AT&T MMS: Text messages or and Multimedia Messages (SMS and MMS) are not included with AT&T’s data plan. You’ll have to add on at least $5 per month so you can send/receive up to 200 messages. Of course, AT&T offers more expensive plans for heavier users.
  • AT&T Activation Fee: Activating an iPhone on AT&T incurs a $36 activation fee.
  • Extra Tax: If you pay state on local tax on retail purchases, be prepared to pay tax on the total unsubsidized cost of your iPhone. AT&T is technically discounting the iPhone 4.0 by $200 to get to the advertised price points of $199 and $200. Many states, including California, require consumers to pay tax on the unsubsidized price, which means you could spend an extra $20 if you live in a tax-heavy state like California or New York.
  • AT&T Upgrade Fee: AT&T is offering many existing subscribers an early upgrade option that is accompanied by an $18 upgrade fee. This sounds small in the face of a $299 purchase, but these fees add up.
  • Insurance: Thought it’s not official, AT&T is rumored to start offering iPhone insurance for $13.99 per month. Third party insurance is available at various rates. Many iPhone owners find themselves having to spend money on repairing or replacing broken iPhones.


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Raju is the founder-editor of Technology Personalized. A proud geek and an Internet freak, who is also a social networking enthusiast. You can follow him on Facebook and on Twitter. Mail Raju PP. Follow rajupp