Why I won't be upgrading to an iPhone 3G--Yet

I usually pickup Apple's latest technology because I like to be on the cutting edge and, well, I'm an unabashed Apple fan boy and have been for years. For example, I got an iPhone the first full day they were available in June of 2007 plus a dual quad Mac Pro and a MacBook Air early this year. But after AT&T posted its rates and activation process I've agonized over the decision of whether or not to upgrade my iPhone to the 3G model. I've decided not to, at least not just yet, so I won't be among the throngs mobbing the Apple and AT&T stores today.

Why? It's partly because I am perfectly happy with my now year-old iPhone, partly because I don't have time to waste waiting unnecessarily in long lines, partly because of uncertainty and partly because I've concluded that AT&T is seriously gouging iPhone 3G customers.

My 8GB iPhone has served me extremely well for over a year. I use it for everything, i.e. travel alarm clock, GPS, email, web surfing, calendar, impromptu camera, iPod--and a cell phone. I haven't used my 5G 30GB iPod with video nor my original iPod shuffle for over a year and probably won't ever again unless my iPhone breaks--knock on wood. The only places I have been where I haven't used it for more than an alarm clock and iPod are Bangkok and Panama--there I used a company-supplied BlackBerry. I get my company Outlook email via redirection to my .Mac address and sync my Outlook Calendar with iCal via PocketMac for BlackBerry. Those functions will improve with iPhone 2.0 software and MobileMe for free.

The principal reasons for upgrading are to gain 3G speed for Web surfing, real GPS precision and, perhaps, a bit longer battery life. It would also allow me to fulfill a promise to my spouse, one that has already taken much longer to meet than I had expected. All of the reasons are nice to haves but only the latter is compelling.

As for wasting time, it's not so much waiting in line to purchase an iPhone 3G that bothers me. It's that the iPhone 3G will also have to be activated in the store which to me seems will make the whole purchase process mind-boggling long and frustrating if the crowds show up as I think they will. My activation process would be fairly complicated and I suspect there are many others in a similar boat. This huge inconvenience is all to protect AT&T from hacked iPhones.

Then, there's uncertainty in what AT&T can and will do with regard to upgrading or adding a 3G iPhone and the cost of doing so. I have an old AT&T family plan that includes my one-year old iPhone, my spouse's three-year old Moto RAZR and my daughter's three-year old RAZR. If I get an iPhone 3G, I want to give my iPhone to my spouse but keep the iPhone's number for the 3G model. She, in turn, would give up her pink Moto RAZR for the iPhone and keep her RAZR's number. My daughter is deciding whether she will keep her black RAZR or keep my spouse's pink RAZR and if she does the latter, she'll want to keep her number as well. It is not clear from AT&T's literature that we will be able to do this and, if so, it is not clear what the final cost will be.

Finally, there is the AT&T gouge. Apple dropped the price of the 8GB iPhone from $399 to $199. In addition, I have a $100 credit from the first iPhone so it would only cost me $99, a real bargain. Essentially, I would be getting two iPhones at roughly $349 each, i.e. the original for $599 and the new 3G model for $99. But AT&T raised the data plan from $20 per month for the iPhone to $30 per month for the iPhone 3G. Fair enough, I thought, since AT&T's 3G network is new and growing and the iPhone 3G will use lots more data per unit time. However, AT&T didn't stop there. It eliminated the 200 text messages in the data plan and charges $5 extra for the iPhone 3G so the equivalent data plan is not $30 but $35. Now, I don't text a lot but there have been a few times when I have needed to receive and send text messages. It's also not clear from AT&T's material that I can simply add an iPhone 3G to an existing family plan for $9.99 a month plus the $35 data charge per month and drop one of my existing phones saving its $9.99 cost for a net increase of only $35 per month. If I were simply upgrading my old iPhone, it seems that the old data plan ($20/mo) would still apply even for the 3G model. But I would be adding a 3G iPhone at $35/mo, surely, and newly activating the older iPhone but at $20/mo or $35/mo? It could be that I will end up paying for two $35 data plans and maybe more.

If the cost of adding the iPhone 3G is only plus $35/mo and I can move the numbers around among the three phones, then I will get an iPhone 3G. But it won't be today. With the mess I figured would happen today actually coming to pass, I'll wait awhile before I try. [Bill Fox]