AT&T Netbook Data Plan Goes Nationwide

AT&T is expanding its subsidized netbook sales plan from an experiment in a few selected markets to a full-blown nationwide initiative.

Previously the telecommunications giant only trialed the subsidized 3G netbook in its Philadelphia and Atlanta markets. The program, first announced in April, offered customers a discounted price on netbooks, starting at about $50, with the purchase of a two-year service contract.

At the time the subsidized netbook initiative was launched, AT&T customers could purchase a small variety of netbooks from Radio Shack, including the Acer Aspire One, Dell Inspiron Mini 9 and Mini 12, and LG Xenia. Prices ranged from $49.99 to $249.99.

The small market test apparently was successful because AT&T Tuesday rolled out a plan to bring subsidized embedded 3G netbooks to its stores nationwide.

"Sleek, mobile and fast is all the rage, and we're going to answer that call with a lineup of the hottest mini laptops in the market," Ralph de la Vega, president and chief executive officer, AT&T Mobility and Consumer Markets, said in a statement. "Pairing these laptops with AT&T's home broadband, Wi-Fi, and the nation's fastest 3G network enables consumers and small business customers to get the most from their new devices -- at home, in the office and on the go."

AT&T said that the lineup of netbooks the company would be offering in its retail stores and through its Web site would include Acer, Dell and Lenovo. Specific model types and prices are not yet available.

Additionally, customers will have to sign up with the telecommunications giant for some type of two-year service agreement in order to receive the subsidized price on the hardware. It wouldn't be surprising to see a monthly data plan somewhere between $40 and $60.

While the adoption of netbooks continues to rise, what is somewhat surprising is the success AT&T had in the Philadelphia and Atlanta markets with its netbook program. After all, the 10.1-inch Acer Aspire One netbook purchased through NewEgg starts around $329.

Assuming a customer signs up for a $40 per month, two-year agreement with the company for data, the cost of the data plan alone comes out to $960 -- almost three times the cost of the new netbook, not to mention the upfront cost of purchasing the hardware.

Of course, that's also assuming that the company doesn't place a limit on the data that can be transmitted over its network, which isn't unprecedented for a communications company.

For example, Verizon Wireless recently rolled out MiFi, a device which creates portable Wi-Fi hotspots for up to five other Web-enabled machines. In addition to a monthly fee, customers are charged between 10 cents and 15 cents for every megabyte of data that exceeds the limit specified by their contract.

Why would AT&T operate under a different model? After all, de la Vega recently told Reuters that the company doesn't make much money selling hardware, instead realizing most of its profit from services.

"Our business is to sell services," he told Reuters, referring at the time to Apple's iPhone.

Still, it's not hard to imagine the CEO's statement being applied to netbooks as well. AT&T will be heavily subsidizing the netbooks from Acer, Dell and Lenovo, and will need to make its money up somewhere along the line. That could translate to higher monthly contract rates and exorbitant fees for exceeding data limits.

AT&T plans to kick of its nationwide netbook offering this summer.