AT&T Wireless has agreed to provide 3G connections for Apple’s new iPad tablet with prepaid plans priced at $15 a month for 250MB of data and $30 a month for unlimited data access. Analysts see AT&T’s latest deal with Apple as a significant development for the wireless carrier, which beat out Verizon Wireless for the contract.
“Certainly being able to hang on to its exclusive relationship with Apple is quite a coup for AT&T — especially given all the recent complaints lodged about the wireless carrier’s 3G network — and this indicates confidence on the part of Apple,” said Lisa Pierce, an independent wireless analyst at the Strategic Networks Group.
The Downside
Apple said Wednesday it will begin shipping a Wi-Fi version of the iPad for U.S. buyers in March at prices that start at $499. Versions with 3G are slated to launch 30 days later and be priced at $629 and above.
However, Pierce isn’t sure most potential users will value 3G enough to be willing to pay about a 30 percent premium for 3G. “Some will, obviously, but it will be interesting to see just how many do,” Pierce said.
The additional strain that a successful iPad debut could place on AT&T’s 3G network is a legitimate concern, Pierce noted. “The expectation is that iPad users will make heavy use of Wi-Fi, and I certainly think they will,” Pierce said. “But that’s not exactly an endorsement of AT&T’s 3G network, is it?”
On the downside, the device’s advanced capabilities will clearly encourage downloading of huge multimedia files. “I think that’s a natural,” Pierce said. “The only question is, how much of this will need to be done in real time?”
Still, AT&T is expected to have plenty of lead time to beef up its U.S. network. “With the iPad straddling multiple…