A VIP with AT&T said that the iPad showed them that the public were more interested in lower price monthly rates without long commitments than getting free hardware. The old holdover system of bribing people with free, or cheaper phone by making them take out a 2 year contract is not appealing to users any more. Netbooks/laptops with 3G cards were not selling under that scenario, but the iPad 3G is a big seller. Note that Verizon abandoned the contract program with the mifi iPad. They charge less for the 3G service and make the puck the same price as going to 3G in the AT&T 3G capable models.