Changes Abound in AT&T's Newly Announced Tethering and Data Plans

As of this morning, AT&T has officially announced tethering for iPhone. While this feature is long overdue and will undoubtably make many iPhone customers happy, not all of the news is good. With the announcement of tethering, AT&T has also made some major changes to both the iPhone and iPad data plans. By far the most controversial move on AT&T’s part is the introduction of data limits on their previously “Unlimited” 3G data plans.

Starting June 7th, AT&T will do away with their $30 unlimited plan for new iPhone users. In its place, two new plans with limited data caps will be introduced.

Data Plus: 200MB for $15/month. (Additional 200 MB for an extra $15)

This plan seems most ideal for “light” iPhone users, or those who have consistent Wi-Fi access throughout their day. Still, the plan seems a little stingy for anyone looking to stream any kind of media over the 3G network even if it is for a short period of time. Even regular web browsing/emailing over 3G can add up quickly when navigating to data rich pages or downloading attachments.

Data Pro: 2GB for $25/month. (Additional 1 GB for an extra $10)

While AT&T claims 98% of iPhone users use less than 2GB/month, the prospect of a limited data plan still seems a bit frightening. For anyone regularly streaming video to their device over 3G via apps like Air Video, it is possible to hit 2GB of data in only a few days of regular use. Even over the course of a month, regularly using streaming radio apps like Pandora or Slacker can seriously add up.

Tethering: Extra $20/month for Data Pro Customers

Tethering is slated to be deployed with the release of iPhone OS 4.0 sometime this summer. As of now, the option is only available for Data Pro ($25/mo.) customers. The added $20/month to enable tethering raises the price of the comprehensive package to $45/month. That’s $15 more than the current Unlimited plan, but with the 2GB/mo. cap still in place.

The newly established Data Plus plan will become available on the 7th, and the Data Pro plan will replace the formerly available $30/month unlimited data option. AT&T has confirmed that this new limited plan will replace the current $30 Unlimited iPad plan as well.

If this isn’t quite music to your ears, don’t fret. AT&T claims that existing iPhone and iPad users with unlimited data plans will be “grandfathered” into the new program. This essentially means that existing iPhone and iPad users will be able to keep their current unlimited plans with the option of opting for a new plan at some point in the future if they choose.

This controversial move has riled up some customers and has generated a very mixed response towards AT&T. While light data users will benefit from the option of the cheaper $15/month Data Plus plan, the majority of iPhone and especially iPad users who enjoy streaming media services such as Pandora and Netflix over 3G will likely feel a bit upset. While I have my own opinions regarding this issue, it would be great to hear other thoughts as well.