ATT Caves, Offers Early Upgrade Subsidy to iPhone 3G Owners

AT&T announced limited changes to its general upgrade policy Wednesday, extending ‘eligibility’ for subsidized pricing on the new iPhone 3G S to some current customers who signed service contracts on the 3G model less than one year ago.

The changes come in response to the great number of complaints that arose after the company announced subsidized pricing on the new iPhone ($199 for 16GB, $299 for 32GB) would only be extended to new customers signing a two year service commitment and to current customers who are ‘eligible’ for a hardware upgrade when they want to purchase a new 3G S model.

The standard upgrade policy has always been vague, with AT&T allowing only that “In general, the more a customer spends with us, the quicker they become eligible for a price break on a new device.”

The announcement released Wednesday stated “iPhone customers who spend more than $99 a month per line with us generally are eligible for an upgrade between 12 and 18 months into their contract,” which is vague enough, but the company will offer, beginning Thursday June 18, subsidized pricing on new iPhone 3G S phones to “customers who are upgrade eligible in July, August or September 2009.”

Further confusing the issue, AT&T offers “early” upgrade pricing of $299 (16GB) and $399 (32GB) for the 3G S model to customers who qualify. The company has an upgrade eligibility wizard on its site that tells current customers when they are eligible to different hardware options based on its secret algorithm weighing length of AT&T contract, how much money a customer spends per month, possibly one’s credit score, etc.

This article is copyright Cultomedia Corp.

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