Just in time for next week's release of a new iPhone, AT&T will stop letting new customers sign up for its unlimited Internet data plan for smart phones and iPads and charge more for users who hog the most bandwidth.
AT&T hopes to ease congestion on its network, which has drawn complaints, particularly in big cities. But the approach could confuse customers unfamiliar with how much data it takes to watch a YouTube video or use a favorite app.
Current subscribers will be able to keep their $30-per-month unlimited plans, even if they renew their contracts. But starting Monday, new customers will have to choose one of two new data plans for all smart phones, including iPhones and BlackBerrys.
Subscribers who use little data - like those who may get dozens of e-mails a day but don't watch much video - will pay slightly less every month than they do now, while heavy users will be dinged with higher bills.
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Analysts expect other phone companies to follow.
AT A GLANCE
Starting Monday, AT&T Inc. is replacing its data plan with two new ones:
• The current plan provides unlimited data for $30 a month. If you're a current customer, you can keep it.
• A new plan called DataPlus will provide 200 megabytes of data for $15 per month. If you go over, you pay another $15 for 200 more megabytes. AT&T says this plan will suffice for people who surf the Web, send e-mail and use applications like Facebook. The data allowance is enough for more than 1,000 e-mails, hundreds of Web pages and 20 minutes of streaming video.
• A plan called DataPro will provide two gigabytes of data per month (10 times more than DataPlus) for $25 per month. If you go over, you pay another $10 for one more gigabyte. AT&T says 98 percent of smart-phone users use less than 2 gigabytes.
With the smaller plan and voice service, a smart phone could cost as little as $55 per month before taxes and add-on fees, down from $70 now, AT&T says.
The prices are in addition to the voice part of the plan, which costs at least $40 per month, plus taxes and fees that vary by jurisidiction.
Data use over Wi-Fi does not count toward the limits.
ESTIMATOR
AT&T's data calculator, for consumption estimates:
www.att.com/standalone/data-calculator /index.html