AT&T Inc. said it will offer a new monthly billing option for the Apple Inc. iPad 2 as it and Verizon Wireless prepare to face off with the same product.
With the iPad 2, AT&T and Verizon Wireless will for the first time each be selling an iPad that is specifically built to run on their respective networks. Previously, AT&T claimed a slight edge because it could sell an iPad with direct access to its wireless service. Verizon Wireless customers had to bundle their iPad with a mobile wireless hotspot, adding another gadget to carry around.
With essentially identical products, AT&T and Verizon Wireless will have to stand on the attractiveness of their pricing plans and the quality of their network coverage to convince consumers to go with their version of the iPad. Verizon Wireless has traditionally been seen as offering superior coverage, although AT&T has recently spent billions of dollars improving its service.
AT&T, however, is tweaking its offer a bit. The carrier kept its pricing structure --$14.99 for 250 megabytes of data and $25 for 2 gigabytes -- but introduced a "postpaid" option in which a customer can receive regular AT&T bills for the data access. Unlike other postpaid services, there is no contract and people can leave at any time. Customers get a free month's worth of access if they choose this route.
"It's for easy billing convenience," said an AT&T spokesman.
For customers who don't want to regularly access the cellular network, there remains the prepaid option, where charges appear on a customer's credit card statement.
Verizon Wireless, meanwhile, is expected to put the iPad 2 under its current tablet options, which is available for the Motorola Mobility Holdings Inc. Xoom and the Samsung Electronics Co. Ltd. Galaxy Tab. Verizon offers more options, but the starting plan is more expensive than what AT&T offers.
Verizon's data plans, which won't require a contract for the iPad 2, include an entry-level $20 plan for 1 gigabyte of data,$35 for 3 gigabytes,$50 for 5 gigabytes, and $80 for 10 gigabytes.
With the iPad 2, AT&T and Verizon Wireless will for the first time each be selling an iPad that is specifically built to run on their respective networks. Previously, AT&T claimed a slight edge because it could sell an iPad with direct access to its wireless service. Verizon Wireless customers had to bundle their iPad with a mobile wireless hotspot, adding another gadget to carry around.
With essentially identical products, AT&T and Verizon Wireless will have to stand on the attractiveness of their pricing plans and the quality of their network coverage to convince consumers to go with their version of the iPad. Verizon Wireless has traditionally been seen as offering superior coverage, although AT&T has recently spent billions of dollars improving its service.
AT&T, however, is tweaking its offer a bit. The carrier kept its pricing structure --$14.99 for 250 megabytes of data and $25 for 2 gigabytes -- but introduced a "postpaid" option in which a customer can receive regular AT&T bills for the data access. Unlike other postpaid services, there is no contract and people can leave at any time. Customers get a free month's worth of access if they choose this route."It's for easy billing convenience," said an AT&T spokesman.
For customers who don't want to regularly access the cellular network, there remains the prepaid option, where charges appear on a customer's credit card statement.
Verizon Wireless, meanwhile, is expected to put the iPad 2 under its current tablet options, which is available for the Motorola Mobility Holdings Inc. Xoom and the Samsung Electronics Co. Ltd. Galaxy Tab. Verizon offers more options, but the starting plan is more expensive than what AT&T offers.
Verizon's data plans, which won't require a contract for the iPad 2, include an entry-level $20 plan for 1 gigabyte of data,$35 for 3 gigabytes,$50 for 5 gigabytes, and $80 for 10 gigabytes.
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