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Chronicles

The story behind the story

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Apple iPhone MMS Delayed, Coming Sept, Tethering $55 Extra

EXCLUSIVE: We originally brought you the story last month stating MMS and tethering would be coming in July.  AT&T responded directly to our story and stated it would be delayed.  Well those stories are true as MMS and tethering are now coming in September.

Appmodo Jason

Context & Ripple Effects

The timetable was already unsettled in June: AT&T had been described as withholding iPhone MMS until late summer, while reports of MMS and tethering working on some iPhone 3Gs suggested that handset software capability and carrier-wide activation were separate issues.

The September schedule resolves the near-term timing question by putting AT&T, rather than Apple’s June iPhone 3GS launch, in control of when these features reach all subscribers. The $55 tethering charge also makes availability a pricing decision, not just a software update.

First-order effects

  • AT&T iPhone subscribers expecting MMS and tethering in July must wait until September for both services.
  • AT&T sets tethering apart as a $55 extra charge, raising the cost for iPhone owners who want to use the phone as a data connection.

Second-order effects

  • Apple’s iPhone 3GS sales push leaves a growing set of buyers dependent on AT&T’s provisioning timetable for advertised software-era capabilities.
  • The gap between AT&T’s earlier late-summer MMS position and reports of limited functionality underscores that a feature can exist on the handset without being commercially available across the carrier’s network.

Third-order effects

  • The episode reinforces carrier control over the iPhone experience: network operators can determine both the rollout pace and the price of data-intensive features after a handset ships.
  • If carriers continue attaching separate fees and activation schedules to handset features, mobile software improvements will compete on carrier policy as well as device capability.

The trend: Smartphone features are becoming services governed by carrier activation and data pricing, not merely functions delivered with the handset software.