Apple Announces iPhone Activation and Service Details - First Take

Michael Gartenberg | June 26, 2007, 08:39 AM

This morning, Apple announced a few more iPhone details related to phone activation as well as price plan details.

Some of the most interesting parts of the iPhone launch have nothing to do directly with the phone but rather with the relationship Apple has with At&T, that network where the iPhone lives. In addition to almost no carrier branding on the device and a total lack of of carrier offered OTA services, it seems the iPhone also has specific rate plans associated with it and a different method of activation.

In a handset that has already deviated from standard industry practices, this is very important. First, there are only three different plans for usage, following Apple's standard way of configuring offerings in "good", "better" and "best" (although the press release states AT&T's standard plans are also being offered.) This greatly reduces the complexity of the offering and at the same time, delivers to AT&T customers who must take voice and data offerings if they want an iPhone in addition to being customers who can afford to purchase a phone that costs $500-$600. While there are fewer choices than AT&T standard offerings, the simplifed process to figure out what to purchase is likely to resonate well with consumers who often face a dizzying array of plans and service offerings from many US carriers.

Plans start at 59.99 for 450 minutes, $79.99 for 900 minutes and $99.99 for 1,350 minutes. What's interesting is that all of Apple's offerings include unlimited data as well, encouraging iPhone users to take advantage of the data centric features.

Likewise, the whole method of activation at home using iTunes will be familiar to consumers, greatly reduces the time consumers need to spend waiting in the store for their phones to be processed (and that will be very important on Friday the 29th ar around 6pm.)