The iPhone App Store takes a bad turn

@Sara

How often do you update your content?! I don't know ANY city in the world that would require updated content more than once in five years (at a minimum). I got my Garmin and it dominates anything else I've seen and/or used (even in Seattle). There were no bugs to update away, no penalties/fees, no contract, and certainly no substription.

My Garmin hit 8000 miles used a month ago and I've used it when I fly all over the country – never once have I needed to update anything. I think I've currently paid $13 a month and in a couple more months the amortized cost will have covered the iPhone's subscription and will only continue to beat it.

Also, Tom Tom is an aweful navigating system compared to a few other companies… I doubt they'll produce a competant iPhone program either. But I'll let you iPhone hoards figure that out on your own.

carol wrote: "If it takes you 6 mos to write an app… and a full 3 mos of work just to add a few things… and fix a few bugs (that you should have caught long ago)… then you are NOT a very good programmer."

And if it takes you 6 seconds to miss the point of a hypothetical and 3 seconds to waffle some pointless bile, then you are NOT a very good intellect.

What is your point, Carol?

That all applications are written in three hours, and therefore everyone who wants an update should get it for free?

That anyone who can't write a perfect app first time around, nevermind that they are dealing with technology that changes its capabilities, should give away their work in shame?

You don't have a point, because you don't get the point.

Go back to your PC.

If it takes you 6 mos to write an app… and a full 3 mos of work just to add a few things… and fix a few bugs (that you should have caught long ago)… then you are NOT a very good programmer.

AT&T will probably drop this service entirely, within the 1st year.

They will all wonder "Gee, why did it fail????"

(Don't they know that 1 year of this foolish service is going to cost me more than just going out and buying a new GPS and using it for free, forever???)

Is it just me? Or should AT&T concentrate on their PHONE SERVICE!!!!! and not other ways to fleece people. For all of the money, influence, reach and resources that this company has – THEIR PHONE SERVICE SUCKS NATIONWIDE!!!!!! I mean, I've spoken with DEVELOPERS that were critical to linking the iPhone with AT&T at the beginning of their relationship and even they admit that the service is lousy at best. Dropped Calls. No Signal. Nitwit Customer Service when you call to complain. But hey, we've got this cool new app that we want to bill you $10 a month for. Will it show me where I can get a consistent signal? I have to forward my calls to a MAGIC JACK for crying out loud just so I can get my cell phone calls IN MY HOUSE!!!!

So I'm sorry folks, I agree with the author of this article. It AT&T being greedy as usual.

Hey, AT&T – if you're listening – how about developing a portable antenna that would guarantee a signal and service and NO DROPPED CALLS? That would be something I would actually find pleasure in paying for.

I feel sad reading some of these articles… and worse, often offended. Has the level of reporting really descended so low as to spout on and on without doing any research. I ran across this article from Apple's stock ticker app for AT&T's symbol. If I wasn't already informed, this article might have deeply misinformed me.

CORRECTIONS:

#1. The app doesn't use in-App subscriptions. It is an AT&T service that sends you an SMS and uses a pin-code to connect the service to your plan's service. The ONLY 3.0 tech being used is turn-by-turn support in the SDK.

#2. The pricing is fine, though perhaps not affordable for everyone. As other commenters have noted, just because uninformed bloggers are "waking up" to services they've previously shunned, doesn't mean companies like AT&T should suddent change the pricing model across ALL devices (or make an exception for iPhone users).

#3. You can start and stop at ANY time. For instance I'm trying the service for a month for $10. So far, it's not feeling worthwhile. Considering Apple's no refund, non-transferable software EULA, I'm happy I'm not paying all upfront.

#4. One idiotic poster compared the service to Google Maps and noted how Maps does turn-by-turn and is "free". Wow. If this is how educated some of your readers are, they really need these articles to be MUCH smarter and well researched. Google isn't allowed to use it's mapping for turn-by-turn. That's why Apple originally banned this function in order to avoid a legal bruhaha. Google has put out the same limits to it's Android users.

I'm sure there is more to criticize but I've got better things to do.

The point is well made that this is not about apple and the app store, but simply about AT&T and how much they want to charge.

In-App transactions are absolutely crucial for the life of the app store, and here is why:

Imagine you are a developer who makes a great app. A zillion folks buy it for 3 bucks, and love it. Now over the next 12 months you want to improve it, and release version 2.0. This update has five new things which are really cool, and two bug fixes. three of the cool news things took you months to work out and code properly. They took about 50% of the work that the original app itself took.

So you figure the new version 2.0 is worth 4.5 bucks for new users, but only 1.5 bucks to existing users who already forked out for version 1.0.

Cool. Well, without in app transactions, you can;t do this. The app store will only let you issue FREE updates, or sell a new version of the same app.

In other words, you are going to give away your work, or piss off all your existing customers.

That sucks. no?

I mean, it encourages folks to not improve existing apps with new versions, and it also encourages folks to wait and not buy new apps until version 2.0 comes along.

Both these scenarios are bad for developers, bad for Apple, bad for the users and generally bad for freedom, democracy, and small furry animals.

Totally bad, no redeeming features whatsoever.

And hence, criticism of the in app purchases is short sighted, and folks who bang on about it being evil need to be taken out back of barn.

It is so true that subscription pricing chops the customer off…but it is also an incentive pricing that lures the customer. many people don't even look at the app, if you say it is a $200 buy it now price. but through subscription pricing, it's less than 10 bucks a month. Many customers get lured at that thought. Welcome to the world of instalments. (I think you are late, if you just realised installment pricings….)

http://www.explainstuff.com

Hey John from Pittsburgh…

did you really have to say financial retard???? couldn't you have said something else without demeaning people with special needs?

geez, you're not in 7th grade anymore, so why are you still acting like you are?

I completely disagree with this article.

New pricing models (including subscriptions) give iPhone app developers more incentive to create great apps. As an iPhone owner that can only be a good thing.

As several other commenters have pointed out, this application's monthly subscription fee is not a function of the iPhone, but of AT&T, the phone's exclusive US carrier. I have a BlackBerry, also on AT&T, and discovered the AT&T Navigator. It seemed like a good idea, until I encountered the $10/month subscription fee. I uninstalled it and installed the very lovely–and free–Google Mobile Apps, which includes Google Maps. It's an excellent service, includes voice activation and regularly updated map data. The GPS plays nicely with it, and once installed, it ties into your address book so you can map locations directly from there. Not being an iPhone user, I don't know what, if any features are available in the iPhone version. However, none of the features are crippled in the BlackBerry version, even on an AT&T phone. Shame on AT&T for charging such a usurious rate when a competing FREE product does a better job.

This is an incredibly non-informative article. Navigation products for phones have been around for a subscription price for years. To somehow deduce that because the iPhone and App Store are involved that the price should be free is a bit ridiculous. You can buy music outright and it is yours to keep, never-changing. Or you can buy a subscription service and listen to as many songs as you want anytime and they update as new music is released. The model of buy and own is not evil. The model of subscribe and update is not evil. They're both just options, and the models are simply different. It's amazing that we live in a culture in which we complain about the many consumeristic options we have because we decided to choose one and not the other. Live and let live – don't buy what you don't want or need, and please start caring about something that matters.

TeleNav Navigator is an application that bills $10/month on every device and is also white labeled by most US carriers (i.e. AT&T Navigator). So the iPhone billing model is no different than on a BlackBerry or other device from any carrier. I guess it is not such a bad idea after all.

I personally think that AT&T Navigator is an EXCELLENT value for the money. I use it over my portable GPS system. Here is why: 1) I always have my phone with me (not an iPhone) so I always have the security knowing whether I am in my car or a friends car, I have in-pocket navigation at hand. 2) I own 3 cars and one portable GPS system so that means moving the GPS unit from car to car – PITA. 3) When I travel I bring my cell phone with AT&T Navigator with me. Rental car agencies charge between $12 – $15 a DAY for in car navigation, so I see the $10 monthly charge as a cost savings. 4) No suction cup marks on my windshield! I don’t know about where you live, but where I live that is an invitation to thieves to smash and grab. 5) A good gps system costs about the same as 24 months of AT&T Navigation – just look on Amazon.com

Everyone, let's make sure we are talking apples to apples

1. The att/cingular service costs $10 bucks a month. Here is what you get for that fee:

> free map updates

> free content updates. content = business listings, gas prices, real time traffic, etc.

> national access (i.e. drive from LA to Maine and not have to pay more than the $10 bucks i already forked over)

> talking directions

> free upgrades to the software when they become available.

2. tom tom, garmin, etc. don't offer anything for the iphone. If/when the do, it will most likely be:

> One time charge (most likely $150 bucks)

> Pay for map updates

> Pay for content updates

> Pay for upgrades to the software when it becomes available

Yes, I own a Garmin Nuvi and the above is how the game works.

So here is the bottom line. Pay $10 bucks a month or pay $150 upfront and then pay garmin, tomtom, etc. fees every time i want to update the maps, content or software.

I do not understand what all of the commotion is about; AT&T provides this feature to other phones as well. In fact it was available on other phones before the phone, it was not until Apple released the 3.0 updated that it allowed the phone to act like other phones that already have this capability. Also Verizon also has a navigation system as well called the Vznavigator that charges the same amount of money per month as AT&T. With this being said I do not understand what all of the commotion is about, if you do not like it you don’t but it and for all who say it is a pain to remove this feature from your plan it is quite easy. You just login to your online account and unselect it and that it. Do not forget event when you own the software for the GPS device they still charge you about $100 for next year’s maps also some GPS devices only come with a certain area as well and if you want the entire U.S. you have to buy the other piece. They get you either way.

I was able to easily delete the AT&T Navigator feature easily on the website. I didn't need to call a service rep to delete it.

i hope apple is serious about exploring other companies when at&t's exclusivity contract runs out. it's obvious the iphone is a winner but the lack of competition amongst phone companies is lacking. apple, i'm waiting on the iphone because of the carrier. i own every other apple product.

For all those crying unfair keep in mind that Sprint Navigation is not a monthly fee, so it's not like it should be assumed that you'd pay for it. Palm Pre FTW.

Apple allowed it's developers a chance to make more money, it's up to the developers if they want to use the technology for 'evil'.

It's bad enough I gave up my T-Mobile plan w/ 1500 minutes for $50/mo to go to an ATT plan that has 400 minutes for $50 bucks. I gave it up just so I could be an iPhone owner…which I LOVE. Despite how much I "could" use this navi app, I'm not going to let them (i.e. Apple/ATT) screw me again. Let's hope TomTom comes out with a better and more affordable solution…with the economy in mind.

To the people claiming subscriptions and in-app purchases are "dangerous" because a child or some other person could run up a large bill, I say, again, personal responsibilty.

The iPhone already allows you to set a pass code to lock the phone, so nobody could do something on the phone without your knowledge.

Additionally, the restrictions manager allows you to turn off certain rights, such as downloading apps and making in-app purchases, without entering the pass code.

So an iPhone unlocked and given to someone to do something on it could still have restrictions preventing in-app purchases not authorized by the owner.

And for parents, they could keep their kid's devices on restrictions full-time, forcing them to as for permission to buy something.

It isn't all that doom-and-gloom, folks. You just have to exercise some personal responsibilty and be an accountable, involved parent.

Is that too much to ask? Is it too much for a company to ask that wants to make money? I mean, Apple ain't yer grandmother!

I went through similar bull with AT&T in 2001 using their internet service. AT&T made it very difficult to stop the monthly charges once I quit using the service.

Ahh, good old American money grubbing marketing!

Verizon does exactly the same thing…it is called their VZ Navigator. You can download it free on the phone but if you are subscribed to it, it is $9.99/mo. on your bill until you have customer service remove it.

"But if I had been paying $10 a month for something I couldn’t use everywhere, I would have needed some blood pressure medicine. At least with the one time fee, you get past that."

Really, Matthew? What of the one-time charge were $99?

The problem is a lack of consumer information and consumer education. If the company is telling you "throw away your old GPS" in selling you this, they aren't disclosing the real story. If you as the consumer aren't asking about the service coverage, you are at fault for that.

I think the best comment earlier was that it doesn't matter if the service is full sattelite GPS or requires the cell towers – if the map to show your position isn't stored locally in your iPhone you have to have cell coverage to download the map.

And since map data is enormous, unless you want to dedicate 10%, 25%, 50% of your iPhone storage to maps, you don't want it on the local "disk".

att or cingular as it was known as is good with such tricks. i had cingular and had a real bad time with their customer service. i call them about a single issue twice and i received two entirely different replies. they just drove me mad.

each time i talked to them about adding a new service (example text message plan), cingular would talk about a new contract. they were always behind me for an automatic contract renewal. i always had to watch my back for their tricks.

believe me , they are really really good at it.

i would never ever deal aith cingular/att again. even if it means not getting the hottest new gadget.

If the iPhone's GPS actually eliminated the need for a dedicated GPS device, it would be a reasonable price. But the fact that the phone's GPS receiver is not very good and the fact that maps are not pre-stored in your phone as they are in a dedicated GPS device and thus have to be downloaded (subject to the vagaries of AT&T's 3G system), makes iPhone GPS navigation unreliable. Sometimes, maps have been so slow in downloading that I've been miles down the road by the time a bit of the map loaded.

I agree with those comments that this is not an App Store issue, but an AT&T issue. Consequently, the title is extremely misleading. If I were Apple, I'd be taking to task whoever's responsible for penning it!

The biggest problem I have with this is the fact that it's not true GPS. I got lost driving through the Eastern Shore area of Maryland last week. I had no signal. If I was depending on this app to get me home, I would have been screwed. Unfortunately, I didn't have a satellite system either.

But if I had been paying $10 a month for something I couldn't use everywhere, I would have needed some blood pressure medicine. At least with the one time fee, you get past that.

I agree. This article's title and implication that there is something wrong with the AppStore is ridiculous!

Blame AT&T for charging $120 a year, not Apple!

Many things make sense on a subscription model. News services for example. Maybe even GPS – just not at that price.

I mean, most "old style" (e.g. BREW) mobile apps have been subscriptions for a long time – but they are like a $1-$5 per month.

AT&T has flipped their lid, and I think they'll realized this with the slow offer uptake and consumer complaints.

But don't blame the AppStore. We need subscriptions, just as we need in-app purchase for "modules" and one-time updates.

Luddites!

All the carriers basically brand and resell telenav – they are the leading GPS app and yes require a monthly fee. If you don't need voice and the other features it offers – use googlemaps or any of the other GPS enabled apps.

Why do iPhone users have this fixation that everything should be free now? Watch how many developers move on with an attitude like that. The free ride is over – now it's all about making $$$ and selling services.

WSJ and others are going to move to the same pricing structure.

I think the article misses the point by aiming at Apple or even AT&T in this case. The real point is that Apple's SDK has now provided an interface to allow just about any hack to quickly deploy a subscription based billing model, a traditionally difficult thing to do and a customer care nightmare. The huge danger in this is alienation of users. As evidenced by the outcry over $10/mo for navigator, imagine what screams will be heard when some joe writes a new fart app that charges $0.25 every time you use it. Your laughing children think it is great fun and after they have played it 576 times in a month and you open that bill to find you have had your pockets raped by the masters yet again, except now the new masters are the kid-hacker in the corner with the black hat. The real cry should be for Apple to take this dangerous technology away from devs and leave well enough alone for what should be a good experience. Fear Apple and their SDK for that but I fear it will be very sour very soon all by itself. Gotta love capitalism though – W.C. Fields sure did. Suckers.

Yet another sucker punch from ATT, from hiding links on their site that leads to cheaper alternatives to charging extra to making it hard to canceling service. Hey everyday brings in extra $. Google should charge ATT for using their map on iphone. They dont even have to update the map…

Price is no different then the fee on any other of AT&T's smart phones. I have a blackberry bold and it is well worth it. No different from the serice fees on the stand alone GPS with traffic updates. What was different for the IPHONE is that you down load it from the App store.

I know the iPhone is a cool device, but how long are people going to be continue to be nickel and dimed by AT&T. Turn-by-turn navigation is included in my unlimited data package on Sprint. I priced out all of the services I have with Sprint to switch to AT&T it would cost me $420 more per year. For me, the iPhone is not worth the cost. I guess I am betting more apps with be done for the Palm Pre.

$10 a month for a GPS system that only works part of the time is ridiculous. It uses the cell towers to locate your position and if anyone has bothered to check the coverage map a large part of the US is not covered. With my Garmin I can be in the middle of Alaska and it still works.

I agree about the "Trojan Horse" statement. If you can't easily unsubscribe to it then that's what it is. There is no reason why ATT could not embed the subscribe/unsubscribe feature in the App Settings. Each iphone on the ATT network is uniquely identified and linked to an ATT account. ATT like other companies just wants to make it difficult to unsubscribe and bilk more money out of you.

$10/month may sound high, but when you consider that buy paying $120/year you no longer have to buy, carry, and support another piece of hardware, that the map updating is free, real time, and automatic, they probably have a price point that works well. The iPhone is a very powerful one device tool – will people pay for the convenience of one device? Probably!

Hi, I work for Sprint and I just wanted to point out in contrast to the extra $10 per month iPhone customers have to pay if they want GPS navigation, Sprint Everything Data and Simply Everything plans for Palm Pre include Sprint Navigation at no additional charge. Sprint Navigation provides audible and visual turn-by-turn GPS directions, 3D moving maps, real-time traffic alerts with one-click rerouting capabilities, and 10 million searchable local listings including lowest-price gas finder – all at no extra cost for unlimited use. Simply Everything already saves customers $1,200 vs. iPhone service plans over two years. Add the extra $240 iPhone customers have to pay over the life of their two-year contract if they want GPS navigation, and the savings with Sprint and Pre jumps to $1,440.

The article is totally bogus, and the writer did not do his homework.

Here's why: The API's do not include subscription pricing that goes outside of iTunes and through the developer. The API's all go through iTunes. That book app that he mentions? That's iTunes charging you, which is much easier to deal with than dealing with the developer.

When a developer makes an app that then allows you to be charged outside of iTunes, you can bet that that was not part of Apple's plan. Therefore, The iPhone App Store has NOT taken a bad turn.

God, why don't these guys do their homework?

ex ped: You make a good point. I've added a paragraph of clarification making the distinction between subscription pricing charged through the App Store and subscription pricing charged directly by the carrier.

Look this is not so much about Apple as it is about AT&T. They are really enjoying their exclusive iPhone and are looking for any excuse to pad their pockets because the iPhone just keeps selling in huge numbers no matter how much more AT&T is charging. Sprint on the other hand obviously isn't in the same position and has given their Navigation system which works better than my Garmin by the way for FREE on the Pre. Again this isn't about devices or manufacturers so much as carriers and AT&T is showing just how ugly they really are in an already ugly businesses.

This whole monthly fee thing is outdated: for a bit more money ($100, maybe?) you can now get a lifetime map update for your Garmin and update whenever you want. So paying a monthly fee for this service is ridiculous, especially since we all know it's only to get "real" updates a couple times a year only. I say charge $50 for the software, and in 2 years people will ditch the phone anyways and pay another $50 to get a new version installed on their new phone.

There is nothing wrong with the App store in purchase model. Free apps do not have this capability, so something is wrong with this story. Did they go online to register for a service after buying the app?

Justin: The iPhone wasn't about supporting old features like MMS and Java, and FLASH, but about extending the iPod platform into having the best of the internet in your pocket, with all iPod features, with both WIFI and phone networks available. It makes no sense to compare it obsolete phones and whine about some old feature you liked when you can still do the same things better using newer technology. AT&T are blocking some services, but they will lose their exclusivity soon.

Well, not to mention the name "Navigator" is already taken and was used by Netscape as in Netscape Navigator. Double "doh"! Who owns that name now…

"Get a Pre…..turn by turn navigation is included for free!"

YOU'RE KIDDING RIGHT? Let's not get carried away. Let's stick to Phil's article and talk about the lameness of a subscription model. The Pre cannot stand next to an iPhone. With the exception of multitasking and that slick UI, which by the way is slick only because you have 80-90% free memory on the device with almost no apps available, there are few advantages to owning a beta product over the iPhone 3G. Your lack of apps, extremely POOR battery life (which by the way is why there is no flash or multitasking in the iPhone), and rather dubious choice in carriers doesn't account for buying a product just because it has talking GPS right out of the box.

As someone else pointed out, if you can do without the voice then the Google App should suffice for GPS. But don't be surprised if Google just decides to put it in there.

Again, I agree with Phil's piece. He is spot on this time.

Richard, a die-hard Apple Fan boy.

Verizon does this the same way with their VZ navigator ($10 a month tacked onto your bill) and even charges air time to use the real-time map feature.

What seems to be the simplest solution, just don't buy it. Get a Garmin or TomTom. $10 a month? Come on.

That's why I like my Blackberry 8830. My GPS is built in and free. I have all the tethering I want with unlimited internet, unlimited call minutes, unlimited texts…unlimited EVERYTHING for $99/month from Sprint. Never an overcharge since it's unlimited everything. Beats the pants off the price of an iphone AND to top it off my phone works all over europe as well if I hapen to go on vacation or business. Take that Apple Fanboys.

What does this have to do with Apple's App Store? AT&T is offering a product at a store…and you don't like the terms of the product. Ok. Why the mention of the App Store – for no apparent reason?

Further, AT&T has offered this kind of subscription service on other cell phones – where was the outcry then? Other cell phone companies offer this kind of subscription service. Where's the outcry?

Ah, right… this is a fluff piece written for the web hits.

Get a Pre…..turn by turn navigation is included for free!

This isn't an alarmist piece. I thought the same thing that Phil is thinking when I saw this app. I moved right along! I think it is a Trojan horse! How do you convince AT&T that you've deleted the program?

The only really good thing that I see in a subscription solution is books. The Amazon App was painfully at a loss breaking out to go to Safari to complete downloads of books in the Kindle app. With everything inside the Kindle Sandbox, you can pay for books/magazines/subscriptions etc and have them right there without breaking away. Additionally, buying a "demo" of a game and entering a special unlock code, after purchasing it, would save you from having two versions of the same program on your device or stuck in iTunes.

I personally hate subscription models. And it won't really help Apple sell more product. They have proven that with iTunes. Jobs' had to be away from the helm to let this subscription model creep through the door. If you want to look at subscription models gone bad check out Yahoo! Music. Probably the biggest flop ever and a totally obvious indication that people want to OWN their product.

I disagree with the comments above. I agree with the writer of this article. Simply because all GPS Navs out there charge a one time fee for the hardware and software. If you choose to upgrade the map, which is usually done annually, then you fork over a few more bucks. No subscription model here. That's why AT&T is doomed to fail because this model reinforce the greedy & below par image they posses. If Tom Tom decides to do the same, then me along with most GPS Nav useres will stick with old and separate GPS Nav from Garmin.

AT&T Need to wake up and get its head out of its A$$. And Apple need to open up the iPhone to other providers, that's how you get innovation.

If i want a GPS service, ill buy a tomtom, 140, it tells me where junk is, and talks to me, i can try it out, and have a satisfaction guarantee.

I am willing to bet the last three apps were written by AT&T reps. All written in quick succession of eachother and defending AT&T's price. Face it, the article is spot on… What idiot would pay 10 a month for something you can pay 100 for and have forever… Seriously you'd have to be a complete financial retard. I am astounded that people have even tried it… Idiots lol.

I don't understand trashing the writer who is trying to clarify the fine print for others who may miss it. I own 2 GPS devices both Garmin. One I have owned for 5 years. Paid $200 which is $40 a year. The economics of the $10 a month won't work. The financial model is broken. They should charge more for the App and scrap the service fee. You paid for the hardware, the software should be a fraction of the cost of a separate GPS device and service should be free. This will fail unless changed.

isn't this feature available on a TON of at&t phones???

Not just through the app store on an iphone?

Shouldn't this article be about big, bad AT&T and their services? How about other providers, do they offer this type of 'paid" service to their customers?

Elmer's not the brightest bulb on the tree.

http://www.wireless.att.com/cell-phone-service/services/serviceDetails.jsp?LOSGId=6982100267&skuId=sku2890219&catId=&_requestid=36711

apple fanboys to the rescue! I have no idea where you get this subscription nonsense. Specifically The s60 devices, wm devices all have buy it and own it turn by turn voice navigation. from free all the way up to 300+. Yes google maps WOULD do the job if at&t/apple hadn't removed several functions (on wm6+ it has voice prompts and direction averaging for auto center) Garmin and tom tom have had working versions of this software since the 3g was released, but apple banned it from the app store because it "duplicated future functionality"

And yes it is a subscription, have you ever tried to cancel a feature from at&t on ANY phone. (let alone the because we can iphone) I would like to cancel my data subscription on my iphone, it doesn't really work anyway. Face it, this is an attempt to squeeze another $10 out of people already paying $100 a month for stuff other phones get for free or cheap.

BTW I have an iphone 3g and I love my mms, tethering, hspa 3g, bluetooth transfers….. Oh wait none of that actually works! (MMS not network supported???? WTF? a 1992 era nokia 330 with mono screen had mms! tethering-= $60 EXTRA a month lowest priced plans $160. Bluetooth transfer, 1994 sony ericsson t616 had it…Not on an iphone. Hspa is slow and limited to 10MB/session on an unlimited plan? 3.5g on 3gs will be supported someday in the meantime you can use them for a space heater in the winter.) you could get a portable nave for less than $90 and save money get more functions and not feed an EVIL corporate entity.

I think we're missing the point of this article. Paying the monthly subscription is not the problem. The problem comes in after you removed the app. You have to convince an AT&T rep that you no longer have the app install or else you will continue being charged for something you no longer are using.

Good article. T and others want to continue to price squeeze here. Just look at Apple's percentage extraction for every appstore app sale. Well, they can while the market is nascent. Short term greedy. Long term stupid. Unfo. T-Mobile has not a clue and also does not provide turn-by-turn out of the box. The G1 is superior technically but with no marketing and poor product management, the iPhone doesn't have to worry right now. Maybe Blackberry will get their act together? Oh yeah, they play the same sorts of defeaturing games with various models so its a crapshoot if a cool app will be cool on your blackberry. BTW, the GPS is NOT enabled for other apps. Its held as a tightly controlled resource for the telcos only. They think the smartphone is a way to further price-gouge. What they don't understand is its a revolution. A market-driven revolution.

This is just another overpriced "service" AT&T is baiting subscribers with. It is another reason why I will never get an Iphone as long as it chained to AT&T. My Sprint phone has kick butt turn by turn 3D maps/GPS Nav and it doesn't cost me an extra penny…ever! Also, the new Sirius/XM app for the Iphone is under the same cloaked subscription model. You can download it free but you need to pay an extra 3 bucks a month to use it! Even those folks who paid over 500 bucks for a lifetime Sirius subscription can't use it without paying extra. Nice business practice people.

so phillip.. can you write a story worth reading now? don't but the app

This is not an in app purchase. First apple does not allow free apps to have in app purchase. Before the 3.0 update there were many other apps that had memberships to use the app such as jott.

This has nothing to do with the in app purchase API and doesn't even use it.

soooo… phillip… don't buy it

why is it when it comes to iPhone and at&t there is always mention of how much something cost. any other service or phone the product is reviewed and left up to the consumer to read the fine print. as for the app from at&t, if you don't want it then don't buy it, simple as that. this is what makes the iPhone such a great device, you have the choice of what you want on your device, not the service provider

The pricing of the app does not come from AT&T, but from the users. If there are neough people who are willing to pay the 'absurd' pricing structure, then the pricing is justified. If no one subscribes to this App, then either the price will have to be adjusted downward, or it won't get sold. While I agree with the author about the absurd pricing, the impact of that sentiment is that AT&T will get $0.00 from me. Revenue, or lack thereof, will always speak louder…

cg, New York, NY

Stop being a short sided Apple fan boy. This App is a bad idea and any rational/non-factional person knows this.

Because of this you may never see the tom-tom app. It wouldn't be the first time ATT has put pressure on Apple to remove an app from the app store.

As long as AT&T does nothing to suppress a competing GPS navigation device being sold and as long as AT&T makes clear to the buyer what the fees are, I see no problem with subscription pricing.

Would I buy a $10/month GPS subscription? No way. The market should recognize that there is an opportunity to sell a single payment for such a system and should respond.

If you don't like paying $10/month, don't buy this app!

"Paying for any of these mapping apps is unnecessary. With any GPS enabled phone, the user can download Google Maps and it has all of the features that are needed. Google Maps shows your location, you can get directions by mapping and with turn by turn instructions plus other features.

Bottom line – don’t pay for an app for this purpose."

How can you compare Google Maps to a turn by turn app? They're in different ballparks. Google Maps, at least on the iPhone, has no 3D view, doesn't update when you reach the next step in your directions, so you must tap the screen if you need the next step, and does not recalculate directions if you go off course.

I had to unlock purchases when buying this for my iPhone, as AT&T bypasses Apple's in-app purchase by charging it to your AT&T account. I was told by the rep that I would not be charged until August 2nd. So they give you at least 1 month free. Hopefully TomTom will be out by then.

Certainly this application is not worth the price since the reliability with which the iPhone's GPS positions one is at times far less than that provided by a standalone GPS as well as the price for which one can obtain a better GPS. I agree with the author that the new (for the iPhone) subscription model for Apps and within App purchases will be a major can of worms for Apple and AT&T despite the likely additional profitability for both. AT&T certainly does not need any more reasons for iPhone users to be unhappy with their services.

I agree with the article. I have a factory nav in my jeep, a JVC gps in my truck, and a tomtom in my other truck. All work fine and do not have subscriptions to run. (and the tomtom was only $100 outright) They should just have a one time cost and then offer an "update" for maps every so often for a certain price so people can make the decision for the updated maps or not rather than pay and pay and pay forever. I find I only use my navigations when going out of state which only happens a few times a year, so why pay for something you use rarely?

it makes me laugh. You never had a phone with this service ?? I have BB and I am paying $10 every month for it and it is well worth it for me.

I'll take this one further. If I own a computer, why can't I put software on it from where I want? Why do I have to go the the App store as the only place to get software for my computer? Imagine if HP or Dell sold you a laptop and then locked it down so I could only get apps from their website. I think the whole "App Store" business model Orwellian and counters what made Apple what it is. I love Apple and their products – just plunked down $4k for a new Mac Pro to do animating. I've written a few Objective-C apps my self but had to pay Apple to put them on my phone… Ridiculous!!!

You have to wonder what some short fund manager paid for this guy to write the article. Taking issue with the cost of this feature is one thing. But calling an app — any app such as this — "a Trojan Horse" is clearly one of those "bought and paid for" puff pieces almost always written and placed by a short fund. Not the first time I've seen Fortune fall off of this wagon: then again, revenue shortfalls both corporate and personal, make people do things they otherise wouldn't do. Sad actually.

That's the beauty of a free market system, ATT can build it, but there's no guarantee they will come. But I'm pretty sure that the sophistication of the software and platform enables an easy enough cancellation if one so desired after ordering, no different than canceling call waiting. In the end, who knows, if ATT packed enough cool factor in the app it may work for them, or not. No sweat off anyones back except ATT's costs to develop and risk to recoup the investment.

So what you're saying is that you want to pay a one time fee to buy a GPS that's constantly updated with the most recent map data and tons of extras for the rest of it's existence, but you don't want to have to pay a cent for those updates or additional features as they become available …. You know on that "car GPS" that you buy, the maps cost $100 and are updated every year right? And if you don't pay you run the risk of the directions it provides just being wrong (case in point the major change in the I95/I895 corridor in Baltimore coming July 17th).

At the rate technology now changes, that $120 a year service gets you far more than a $120 GPS that you should update every year for another $100/year.

What a pompous twit. This isn't a story about a product. This is self-serving, alarmist drivel. Fortune should be ashamed for printing this lame excuse for journalism.

Turn-by-turn voice navigation applications are sold for all sort of phones by virtually all carriers under the same sort of pricing model. It's a MONTHLY SUBSCRIPTION — to an application that runs on your phone and in the process eliminates the need for another separate device — a device that people see stolen from their cars all the time. It is an application that is updated regularly, a function of the subscription, as to new roads and important locations registered. Sure there are device options where you pay a few hundred bucks and you own the separate device. Software that runs on your phone is an alternative that has different capabilities – as above – again … IT RUNS YOUR EXISTING DEVICE – that some people – millions already — will choose over carrying yet another device – or again, leaving it in a car to be stolen. And if you decide that you want to cancel your subscription – as with all subscriptions – magazines, etc, you pick up the phone and call and simply tell someone on the other end to turn it off. There is no chasing down an AT&T rep and convincing of anything. That statement is nothing about honest reporting and all about an obnoxious, self absorbed writer looking for attention. You pompous twit!

This article bothers me. I'm not here to defend ATT&T but the bias here is crazy.

a) From the add it looks like the app is free and this includes getting directions.

b) 9.99 is the fee for getting "VOICE" directions so you don't have to look at the phone while driving.

c) This is GPS solely as a service – you already have the hardware. How much is a garmin / tom tom at the store? 100 bucks for the cheap ones? That's 10 months of service here!

Try a month for 10 bucks see if you like, can you say that for any other GPS service?

The APP store has broken people. The sense of self entitlement is crazy, why should everything be free?

I don't support autobilling if its not very clear up front, but the add shown in the article indicates its a monthly fee.

Paying for any of these mapping apps is unnecessary. With any GPS enabled phone, the user can download Google Maps and it has all of the features that are needed. Google Maps shows your location, you can get directions by mapping and with turn by turn instructions plus other features.

Bottom line – don't pay for an app for this purpose.