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Since the original iPhone was first launched on June 29, 2007. Since that day, iPhone owners have been waiting with baited breath to get MMS on the iPhone. It made sense that Apple pushed a few items to the side in order to make their launch date. The list of desired features and functionality for the iPhone is quite long; but MMS was always near, if not at, the top. Today, AT&T has finally launched MMS for the iPhone in the US after Apple announced the iPhone 3GS on June 8, 2009. Since then, AT&T has been working to make the experience the best possible and no doubt will have to continue to work hard to keep it up and running since wireless usage triples every year.  Regardless, it’s finally here!  This morning, a Carrier Update was made available via iTunes.  To enable MMS on your iPhone, simply connect to iTunes and click “Check for Update”.  A message will appear* advising you that an update is available and prompts you to install it:

The update will take only a few seconds.  Once completed, restart your iPhone and ta-da!, you’ve got MMS!

*Note: The MMS Update is only available to those running iPhone OS 3.1.

As a coworker said… Welcome to 2003!

Have a voice plan $60 or higher? Well on September 20th, you’ll be eligible to add your ‘A-List’ to your plan at no extra charge (and wayyyyyy overdue)…

Read the full AT&T Announcement here.

If you’re one of those that couldn’t wait and hacked the iPhone OS 3.0/3.1 Beta to get tethering on your iPhone, the latest Beta Release has fixed that… Beta 2 will disable any hacks that previously enabled tethering on AT&T iPhone devices.  AT&T does warn that tethering without the appropriate plan violates your Term of Service and can lead to termination of your service & Apple warns that jailbreaking your iPhone voids the warranty.

This latest Beta release spurs up old rumors of tethering offerings from AT&T, mostly surrounding the cost.  The ones I’ve heard are completely false… internally it hasn’t even been released what AT&T will charge for tethering (although not surprising since all Apple information has been kept secure until launch); however, since the existing iPhone Data plans closely mirror that of PDA & BlackBerry for both personal and enterprise customers, I would predict that an iPhone Tethering plan will be $60 added to whichever voice plan the subscriber has.  This $60 plan would REPLACE any existing data plan, not added to the existing data plan.  I’ll keep a list below of the rumors I hear and whether or not their true.  Stay tuned for the real story!

Rumor: iPhone Tethering Plan to cost $55 in addition to existing iPhone Data Plan [[FALSE]]

Apple released the Beta for iPhone OS 3.1 (Build 7C97d) today to developers.  The Carrier has been updated to AT&T 4.2, along with the Model Firmware which is now 05.08.01.  The other major change is that the MMS buttons are back in the Messaging App; which makes me think that AT&T will be ready with their updates to the network by the time 3.1 is publicly released.  Apple removed the MMS buttons in 3.0 Beta 5, so this may simply be a repeat of that same scenario.  As it stands now, attempts to send MMS result in the Message Failure “!” (seen below).

Some additional updates include Voice Control over Bluetooth and Video Editing where when you trim the video, you have the option to save and overwrite the original, or save a copy of the video.  Glad they clued into that one right away!

So far that’s about it… I’ll update if more surfaces.  Happy iPhoning!

Today, Apple kicked off this year’s WWDC with their opening Keynote Address at the Moscone Center in San Fransisco, CA.  With the list of announcements made today, the major focus was on the iPhone (as usual) and it’s 3.0 OS Update along with hardware enhancements for the new iPhone 3G S [Speed].  The 3.0 OS Release is scheduled for June 17th, with the new iPhone 3G S released two days later on the 19th.  Apple & AT&T definitely learned their lesson from the 2.0 launch after it bricked countless iPhones due to the overwhelming number of updates that day which neither AT&T, nor Apple were prepared for.

Apple also released the Gold Master to Developers today (iPhone 3.0 OS Gold Master [Build 7A341]) which is the final Release Candidate until the official launch on the 17th.  It’s been over a month since the last release and so far I don’t see much difference from Beta 5.  Of course the most anticipated feature coming in OS 3.0 is MMS, which will be released later this summer… to much disappointment of iPhone users.  As soon as the news hit, the rumors started flying and bloggers everywhere posted their assumed reasons why MMS for AT&T is delayed when the other carriers shown in the Keynote would be ready at launch.

As an employee of AT&T*, I find it somewhat offensive that people are quick to complain (to me, specifically) about AT&T when they don’t have the full/accurate story.  After Apple’s Keynote today, the bloggers spun out every possible imaginative reasoning for the timing of the release of MMS and Tethering, and the pricing for the new iPhone 3G S and blamed it all on AT&T… yet, AT&T isn’t the one that MAKES the device.  People are VERY quick to blame the carrier (regardless of who it is) before the manufacturer.  I’m not blaming Apple for the MMS/Tethering delays, but I am blaming the fact that they allow everyone to assume AT&T is to blame for a JOINT VENTURE downfall.  The first obvious question I have is, why would Apple release the device if it is not fully supported by the #1 Carrier that APPLE CHOSE to service it’s device?

To those who are begging Verizon and Apple to strike a deal… yea right.  Verizon operates on CDMA – an ANALOG technology which is limited to the US.  Apple has explicitely stated they chose AT&T because it is the #1 Worldwide Carrier and operates on the World Standard Mobile Technology: GSM/UMTS.  While, yes, the exclusivity between AT&T and Apple will expire in 2010, I doubt Verizon will have their LTE in place by then.  The only other carrier in the US that would have a chance would be T-Mobile, and lets be honest… not a threat.  Verizon has their very fatal downfalls as well… let’s not forget that they castrate features like Bluetooth and Wifi (they made RIM remove Wifi from the Storm).  No doubt they’d have a field day with the iPhone.

So let’s get into it… I will touch on three points to the iPhone 3.0 OS and 3G S announcements today: MMS, Tethering, and Pricing (for Device and Service).

MMS: Boy Genius Report “claims” that AT&T is at fault because it has to remove “MMS Opt Out Codes” from every iPhone subscriber.  This is FALSE.  Here is how the billing is actually set up:

• iPhone 3G Subscriber: Each subscriber at time of activation has three PPU (Pay Per Use) billing codes: Data PPU, SMS PPU, and MMS PPU.  When the iPhone Data Plan is added, the Data Pay Per Use code is removed (replaced by the iPhone Data billing code).  When the Messaging feature is added, both the SMS and MMS Pay Per Use codes are removed (and replaced by the iPhone Messaging code, which does not block MMS).  This prevents billing errors so that you are not billed for KB (Data), SMS, or MMS usage when you have a plan.  There is NO MMS OPT OUT code added.  If there is one, it was added in error by an uninformed rep.
• iPhone 2G Subscriber: Just as with the iPhone 3G, each subscriber at time of activation has three PPU (Pay Per Use) billing codes: Data PPU, SMS PPU, and MMS PPU.  When the iPhone data plan is added, all three of these are removed as the 2G data plans are bundled with messaging – so instead of adding two features, only one is added.  Again, NO MMS OPT OUT code is added.

The delay does NOT pertain to AT&T’s BILLING system.  The issue is the way the iPhone manages data and only using one APN – where as most Carriers use two: one for MMS, and the second for all other data (e-mail, internet, application data, etc).  As Apple is obviously not changing the way they built the iPhone, the change now falls to the Carriers.  With the 5.9 MILLION 3G iPhones that have been sold, the bulk of those were activated on AT&T.

Apple (in typical Apple fashion) is implementing MMS differently than 99.9999% of current phones! Apple has demanded that carriers combine two different features into one, which requires a bit of reworking and retooling a system that spans a continent and has nearly 80 million customers. Apple’s partner in Germany, T-Mobile, approaches 40 million customers, but the country is about the size of New Mexico. This makes it easier to adapt Apple’s new use of an old technology. [Quoted from my friend Nick, a former Apple employee]

This is a HUGE NETWORK UPDATE that doesn’t just affect iPhones, and as any SMART BUSINESS would want, AT&T would rather be SAFE THAN SORRY.  Oh, and by the way, if you’re one of those who have a jailbroken iPhone, be prepared to probably have to call in to Customer Care (800-331-0500 for your reference) to file a ticket to fix the issue that will probably arise when iTunes can’t update your device because you’ve had the MMS PPU feature added back, or the billing issue that you find on your next bill for the same reason.  Just a forethought.

Tethering: The reason for the delay (which is a delay and not a refusal from AT&T to support this feature) is simple.  It takes time to build rate plans – to test them, to make sure there are no billing errors, etc.  Along with having to rework our network to operate using one APN, some things have to be lower on the list.  It can take over 6 months to build and verify billing codes that are compatible with not only our current rate plans, but also grandfathered/expired plans (trust me, I know this process VERY well – it can be very long and drawn out).   Also, recall that Apple said today that this feature will not require additional software – so those of you complaining about “inferior AT&T software blah blah blah” – ask Apple to repeat that note for you.

As for the service cost, we’ll get into that now…

Pricing: AT&T’s pricing for service is competitive against Verizon Wireless.  Plain and simple.  Verizon’s Tethering Plan is $60 for BlackBerry, same as AT&T’s.  Verizon’s & AT&T’s Voice Plans mirror each other.  Personal Data service across the board is generally $30.  Where is AT&T “gouging” it’s customers if Verizon does the same?  Also note that you’re getting access to the ISP APN with the tethering plan which provides faster speeds than the slower APN for standard mobile web data.

TIP: Call AT&T or visit AT&T Premier to see if you are affiliated with an organization that qualifies for special benefits on eligible products and services.

Equipment Pricing seems to be the other major pain point for current iPhone owners.  Keep in mind, Apple is the other major partner in pricing their own device.  Equipment pricing as always been a pain point for existing customers, with all carriers.  Why?  Because existing customers feel they’re entitled for their “loyalty.”  Let’s break it down for you though (and keep in mind, AT&T is a Business… what do businesses do? Oh that’s right, make money!)…

• AT&T makes money on SERVICE, NOT DEVICES.  AT&T purchases equipment from the manufacturer at cost, meaning if the original price of the device is $700 (like the 32 GB iPhone 3G S), that is how much AT&T purchased it from Apple for.  So when AT&T “sells” a device to a customer, they’re already in the hole because discounts were provided when a contract is signed.
• So if a customer signed a 2 year contract, and purchased the 32 GB iPhone 3G S, AT&T has started off with a debt for this customer of $400.  If the customer has the basic voice and plans for the iPhone, they’re monthly bill would be roughly $100 [$39.99 Nation 450, $30 iPhone Data, $20 Messaging].  That would take a minimum of 4 months for AT&T to not only make back the money it lost on the device, but also to START making a profit from that customer.
• Next, for existing customers, there is an upgrade policy which determines if a customer is eligible for an upgrade at a discounted price.  The standard length of service required to be eligible is 18 months FOR ALL CUSTOMERS, not just existing iPhone customers.  When the 3G iPhone was launched, a new policy was instated that provided EARLY upgrades at a discount – while not at the full discount, a discount none the less.  Unfortunately, this has caused iPhone owners to feel entitled to a discount when they haven’t fulfilled their original commitment for which they got a discount from signing.  The 3G iPhone was launched roughly one year ago – for those of you who signed a one-year contract – congrats, you’ll probably be eligible for a full discount.  Why? Because you’re near, or out of your contract.  For those of you who signed a two-year contract, you’ve only completed 1/2 of your contact (at best).  To provide you with another full discount for the device when you’re only extending your contract for 1 year (even though you sign a two year, you’re just starting a new contract from that date, not actually adding on a full two years).  So if you’re not committing the full length of the contract, why should you get the full discount offered to new customers who sign a 2 year contract?  How is that fair?  To be blunt – you’re lucky Apple & AT&T have decided to provide a partial discount at all.  Don’t be bitter because you can’t afford it – there is always a cost of new technology.  A lot of people in this economy can’t even afford the $99 that the 3G iPhone has been reduced to and may still be rockin’ the old 4GB 2G iPhone.

iPhone 3G:

* New & Qualified Existing Customers: $99 (8GB), $149 (16GB)
* Early Upgrade Pricing: $299 (8GB), $349 (16GB)
* No-Commitment Pricing: $499 (8GB), $549 (16GB)

iPhone 3G S:

* New & Qualified Existing Customers: $199 (16GB), $299 (32GB)
* Early Upgrade Pricing: $399 (16GB), $499 (32GB)
* No-Commitment Pricing: $599 (16GB), $699 (32GB)

• As for the $18 Upgrade Fee – that’s been around since the days of AT&T Wireless and Cingular Wireless.  AT&T is not the only carrier that charges an Upgrade Fee, and it applies to all upgrades, not just iPhone upgrades.
• Not eligible but your friend is and you got your device on the same day? Check your payment history – ever been late on your bill?  There’s your reason.  If you’re late paying your bill, your upgrade eligibility gets pushed back.  Because AT&T definitely wants to reward its customers for not paying their bill (a.k.a. Stealing).  [Added 6/9/2009]
• Lastly, there are always exceptions to the rule – seriously – if you think you have that big of a case that you should be granted a full upgrade before you’re eligible, say so – the worse thing that can happen is they’ll say no. [Added 6/9/2009]

Planning to cancel your line and activate a new line to get around this (because your math tells you it would be cheaper to do so)?  Think again.  This is called Phantom Churn (not to mention Equipment Fraud).  If you attempt to active a new line of service within six months of canceling the old one, this is flagged and the old line (with the original contract) is reinstated – meaning no new discount for equipment.

Lastly, if you’re not tired from being served with the TRUTH – a word of advise: A lot of the rumors and “insider info” is false – even from AT&T Store Reps.  BE KNOWLEDGEABLE – DO YOUR RESEARCH! You wouldn’t believe everything a car salesman, or any other salesperson for that matter, told you because we all know that they want primarily one thing – to SELL IT TO YOU; and unfortunately, that might include stretching the truth.  Don’t go into a store blind and dumb – know the product you’re wanting to buy before you go buy it.  That’s just common consumer sense.

Inaccurate Blog Posts I’ve found so far:

• AT&T responds to iPhone 3G S pricing and (lack of) features
• Real Cost of iPhone 3GS: About $218 More Than You Think
• Why The iPhone 3G S May Be A Sucker’s Bet Right Now
• The reason why AT&T won’t support MMS with the iPhone until “late Summer”, tethering info!
• The dying goodwill toward AT&T

*While I work for AT&T, this blog or its contents do not, in any way, represent the views or opinions of AT&T or Apple.

Apple Insider has updated their 3.0 review to include many more screenshots and description of new features and abilities: iPhone OS 3.0 first impressions and photos [Updated]

History of the Beta releases through today…

3/17/2009: iPhone 3.0 OS Beta 1 (Build 7A238)
3/31/2009: iPhone 3.0 OS Beta 2 (Build 7A259)
4/14/2009: iPhone 3.0 OS Beta 3 (Build 7A280f)
4/28/2009: iPhone 3.0 OS Beta 4 (Build 7A300g); iTunes 8.2 (1st Pre-Release)
5/6/2009: iPhone 3.0 OS Beta 5 (Build 7A312g); iTunes 8.2 (2nd Pre-Release)

iPhone 3.0 OS is expected to be released to the public during the June Worldwide Developers Conference in San Francisco.

[via PCWorld]

Apple released last night a third beta build of the iPhone 3.0 software, taking developers one step closer to the final release in June. Arriving exactly two weeks after the previous build, the iPhone 3.0 third beta software build brings speed improvements and plenty of under-the-hood goodies.

One of the most significant additions to the latest beta of the iPhone 3.0 software is the way individual apps will be able to notify users of updates or additional content. At the moment, individual apps flag users only in iTunes of new events, but with the 3.0 build, they will be able to do so right on the phone via badge, text or sound notifications.

Developers are also reporting further improvements in the latest beta carrying the 7A280f build number: Spotlight (phone-wide search) will now let users save the last search they made, and can set restrictions for inside-application purchases and location data.

An interesting fact about the third beta of the iPhone 3.0 software is that the Skype app no longer works on 3G. With previous builds, Skype allowed 3.0 beta software users to place calls via 3G, unlike the same app on the current 2.2 platform, which can make calls only over Wi-Fi. Apple seems to have fixed this “bug,” so no more wishful thinking for cheap VoIP in the 3.0 final release.

This third beta of the iPhone 3.0 software indicates the imminent arrival of a final 3.0 software in June, just like Apple promised. However, the question remains whether we will get some new iPhone hardware as well, especially as rumors intensified over the last weeks, detailing hardware components and features.

Working for a wireless carrier… every time I see one of these articles, it consistently amazes me that this usage is 100% profit for the company – no overhead whatsoever.  I need to invent something like this!!!

Everyone knows that teens love to text, but sometimes it gets way out of control.  Especially when your parents open a $5000 cell phone bill.  This is the case with 13 year old Dena Christoffersen of Cheyenne, Wyoming who is responsible for sending and receiving over 20,000 text messages in one month.  She averaged 700 texts per day, which I’m not even sure is humanly possible.  After receiving the bill, her father took a hammer to the phone (I already like this guy) and was grounded to the end of the school year.

In order to help her parents out, the entertainment service provider Predicto has offered to foot the entire bill on their behalf.  In exchange for the company’s generosity, Dena has to write an essay on the importance of taking responsibility for your mobile phone habits and what she has learned from the experience.  Predicto is going to post the essay on its blog as a warning to both teens and parents about how much out of control texting can cost you.  Hopefully, parents will realize the need to better monitor their teen’s phone usage and teens will appreciate that overboard texting comes at a high price.

[via gadgetell]