AT&T nixing $20/mo unlimited plan for Pay-as-You-Go iPhones

By Erica Sadun

Tonight, some AT&T subscribers were texted with the news that AT&T will discontinue the $20/month "Unlimited" MEdia Net option as of November 12, 2008. Until now, off-service (no-plan, Pay as You Go) iPhone users could purchase Unlimited MEdia Net and use their iPhones with the service to up to 5GB of data transfer.

This policy change means that off-service iPhones (those without a standard iPhone voice and data plan) will be unable to subscribe to this low-cost Pay-as-You-Go service after the 12th of next month. AT&T's $4.99 for 1MB and $9.99 for 5MB MEdia Net options remain unaffected by this decision.

The message reads: "AT&T Free Msg: Unlimited MEdiaNet packages will no longer be available as of 11/12. 1MB and 5MB MEdiaNet packages still available. Call 611 for details."

We aren't clear on whether this means you can no longer use current unlimited MEdia Net plans as of the 12th, or whether you simply can't buy new unlimited MEdia Net packages as of that date. Calling 611 did not reveal any further details at this time, although it did allow me to add on one more month of service at $20 per month. We will update you if we learn more.

Who is affected

• All Pay as You Go customers, regardless of phone type, particularly those who use lots of data rather than voice.
• Original 1st Generation iPhone users using the $20/month PAYG Unlimited MEdiaNet service for EDGE connection without a standard plan.
• New 3G iPhone users who have canceled their plans, paid the $175 early termination fee and are using the $20/month PAYG Unlimited MEdiaNet service for 3G connection.
• Hearing impaired users who don't or rarely need voice service who have chosen to use Pay as You Go instead of the much higher priced disability-specific plan offered by AT&T

Who is not affected

• Any iPhone that is currently under contract with AT&T, regardless of whether you are on the original grandfathered $20/month unlimited data plan or the current $30/month unlimited data plan.
• Any Pick Your Plan 1st generation iPhone.

Original here