// Home / News

The question they won't answer: is Apple getting an iPad data kickback?

By Barry Collins

Posted on 11 May 2010 at 15:12

Mobile phone networks have refused to disclose whether Apple is taking a slice of their expensive iPad data tariffs.

Three of Britain's mobile networks - O2, Orange and Vodafone - announced 3G iPad data plans earlier this week. The deals have a lot in common, with the best-value packages working out at £5 per gigabyte per month: for instance, Orange and O2 charge £15 for 3GB and Vodafone charges £25 for 5GB of data.

Unlike with the iPhone, none of the mobile networks are offering a discount on the iPad hardware itself. For the same £25-per-month price, some iPhone tariffs include "unlimited" data, discounts on the handset and free calls. The only factor in the iPad customers' favour is that they're committed to rolling monthly deals instead of 18- or 24-month contracts.

We expect to see very limited take-up of the Wi-Fi/3G version compared to Wi-Fi only

When asked by PC Pro whether Apple was taking a slice of the data income - as it did with the iPhone - all three networks refused to comment, citing corporate confidentiality. Apple hadn't returned our request for comment at the time of publication.

Apple iPad buyers have little choice but to take one of the three networks' deals if they want 3G access on their tablet. Apple has adopted the new Micro SIM format for the iPad, which means users are unable to use their existing SIM/data package. (At least, not without chopping up their existing SIM card and forcing it into the slot - a procedure that reportedly works, although breaks the networks' terms and conditions, according to O2.)

Industry expert say the £100 premium applied to the 3G versions of the iPad, coupled with the data fees, will put off many buyers. "It's a very expensive 3G product," said Geoff Blaber, head of mobile device software research at analysts CCS Insight. "We expect to see very limited take-up of the Wi-Fi/3G version compared to Wi-Fi only."

Blaber said the networks had priced the data plans cautiously because of the sharp upswing in mobile data usage that was triggered by the iPhone. "The networks have a difficult balancing act," he said. "It's a new form factor, and they're not sure how customers are going to use it.

"There's a concern these [iPads] could be particularly heavy on the networks. The iPad could be even more bandwidth intensive [than the iPhone], particularly if people are downloading books," he added.

Subscribe to PC Pro magazine. We'll give you 3 issues for £1 plus a free gift - click here

From around the web

User comments

Hmm having second thoughts

Unlike many people commenting on PC Pro I like the concept of the iPad and fancied the 3G version. I am having second thoughts because of the additional cost and the tariff for 3G. I think I will wait and see one in the flesh before I decide.

By kaneclem on 11 May 2010

is Apple getting an iPad data kickback?

Oh come on! Apple are just a bunch of blissed-out hippies in T-shirts and sandals. They don't use money, they barter with hand-crafted knickknacks when they want anything.

The idea that money means anything at all to them is just a vicious slur spread by Windoze users, at the behest of their chief devil and architect of all the evil in the world, Bill Gates.

By Lacrobat on 11 May 2010

The question that needs no answer...

cos the answer is obvious. Apple must have been taking 'backhanders' for the iphone too. Even Microsoft back in the day never used moneygrabbing tactics like this. But still, the lemmings form an orderly queue at the apple store.

By everton2004 on 11 May 2010

Why would they?

I don't see what they would need too? Is all the mobile operators are selling is a sim card, that should work in any certified product.

I am as confused as anyone though as to why is costs more for an "iPad" tarrif than it does for a "normal" dataplan with free USB adaptor.

In honesty I think they are just ripping off users, expecting them to pay.

By JStairmand on 11 May 2010

particularly if people are downloading books?

I haven't looked at eBooks recently but a few years ago they were less than a megabyte each.

Surely the point of using an iPad rather than an iPhone is use a full web browser.

By peterm2k on 12 May 2010

Books or video?!

By iainpotter on 12 May 2010

Of course Apple are taking a cut. That is why the data charges are higher than normal. I am hoping to get an iPad but not the 3G version.

I believe in Spain you can now get a free microsim to go in to your iPad that shares your data plan with whatever contract you have.

If I could do the same here I'd buy an iPhone HD (if that's what it's going to be called) and get a micoSim for the iPad. However I wont buy a 3G version.

I will download everything via WiFi or from my PC.

By bigrob14 on 12 May 2010

I'm starting to think the ipad is some form of social experiment. A very expensive object, with very limited uses, in a very difficult to use form factor which becomes increasingly more expensive the more it is used for it's limited uses It sounds like some form of Cenobite hell torture device to punish people too arrogant and vane to realise how stupid they are.

By dodge1963 on 13 May 2010

Leave a comment

You need to Login or Register to comment.