AT&T’s 180,000% markup

3 Feb

One of the challenges of international travel is getting access to communications. I’ve gotten used to being able to check email, look up restaurants, find maps and communicate with friends from anywhere in the U.S.

Take your iPhone overseas and all of this can get really expensive, really fast.

At AT&T’s pay-per-use rates, you’re charged $19.97 per MB. It’s cheaper to buy and send a physical post card to friends than it is to send a digital picture.

The only way around that is to buy a local SIM and use it on an unlocked iPhone. This process varies from country to country and can be quite a challenge if you don’t speak the local language. It also means that you don’t have coverage the moment you step off the plane.

I got lucky on my recent trip to Italy. The first store I walked into had a clerk who spoke English and understood what I needed. For 2 Euros ($2.76) a week*, I got up to 250 MB of data usage. At AT&T’s a la carte rates, that same usage would run $4,992. If you plan ahead, you can get 200MB for the low, low price of $199.

Even ripoff hotel minibars only charge 3x-4x street costs for convenience.

AT&T’s data markups are even way out of line with its international voice roaming rates. With voice,  AT&T actually provides some value in that phone calls to your number get routed by AT&T to your phone overseas. With data, the only convenience over a local SIM is that you don’t have to seek out a local provider.

The pricing is so absurd that the only people who would do this are business travelers who must be connected at all times, the fabulously wealthy or everyday customers who don’t understand the charges and will further resent AT&T when they get the bill.

AT&T’s the company that pioneered Digital OneRate, which eliminated nationwide roaming charges. I’d like to see them do something rational for international roaming.

* For comparison, this is also much less than AT&T charges for domestic data usage. With a contract, AT&T charges $15 for 200 MB of data. This works out to about $11 for 5 times as much data.

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One Response to “AT&T’s 180,000% markup”

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  1. Quora - March 13, 2011

    How can 1 GB of data usage on an iPhone 4 be quantified for those of us who are less technically inclined?…

    The easiest way to understand this for most people: don’t worry about it. Even as a power user, my usual mobile phone data consumption is in the 400-500MB range. This includes regular checking of email, reading tweets, foursquare, uploading pictures, …

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