[IMG]http://simplefeed.consumerreports.org/rsrc/i/1/_/atts_wireless_netbooks_come_with_strings__36391484 6/4.gif?f=3dcb3160-01dc-11dc-32a2-0019bbc55f7f&s=AewyNia7NTvDvhaDemju5DEsbnVsbCwwLDA *[/IMG] AT&T's wireless netbooks come with strings

It looks like the netbook, that cheaper, no-frills class of laptops, is increasingly going to be sold by wireless carriers much as they now sell most cell phones?that is, at a reduced price in exchange for signing a two-year service contract.

So how promising a development is this for consumers? We?ve looked the netbook deals with AT&T, the carrier that?s already selling netbooks this way, and reviewed our knowledge of the way reduced-price cellphone contracts work.

Here?s our take:

Less cost upfront, but? Starting this month, AT&T has been selling Acer, Dell, and LG netbooks in Atlanta and Philadelphia for between $50 and $250, depending on features.

That?s up to $250 less than you?d regularly pay for those models. However, you?ll have to sign up for either a $40- or $60-a-month AT&T data plan for your device. That adds up to $960 or $1,440 over the two-year contract period.



While we obviously don?t have data yet about how AT&T or other providers may cover the price difference between the retail and reduced price of these contract netbooks, our analysis of the way carriers pay for reduced-price cellphones suggests the answer: They?ll recoup the money from you.

That is, our look at the balance sheets of the cellphone carriers has revealed that carriers actually take a portion of each monthly cellphone bill and use it to reimburse them for their upfront cost of providing you with that ?free? or discounted phone.

So if netbook contracts are set up like those of phones?and there?s little reason to think they won?t be ?that low-cost netbook will be less like a discounted model and more like one that?s bought on the installment plan.

Plans have data limitations.* The $40 AT&T plan has a data limit of a paltry 200 megabytes a month, barely enough to cover a few e-mails and one YouTube download. Drive over the limit and you'll pay an additional 10 cents per megabyte ? meaning viewing Susan Boyle?s YouTube video again could cost you another 30 to 40 cents. The $60 plan expands the data bucket to a more practical 5 gigabytes, but comes with higher overage charges: 49 cents per megabyte.

You can, however, stretch your data dollar by using these netbooks at Wi-Fi hotspots, which have no data limits and are generally faster. And, we?d suggest disabling any automatic operating-system updates (which can run to dozens of megabytes) and update manually?or download any new software? only when you?re on a Wi-Fi connection. AT&T?s plans include unlimited access to AT&T?s normally fee-based Wi-Fi hotspots.

The netbook is locked to the carrier. Don?t expect to shop around for another carrier after your two-year contract is up. The subscriber identity module (SIM) card that enables the AT&T netbooks to access the Internet via the company?s data network is locked to the carrier. (Wi-Fi access is unrestricted). That means you won't be able to use these netbooks with, say, Verizon's EV-DO data network after your AT&T contract runs out.

The takeaway: The so-called subsidized netbook will require some careful shopping, and consideration of its pros and cons.

Right now the* AT&T netbooks are the only computers offered at reduced prices by a major carrier that can wirelessly connect to the Internet when Wi-Fi isn't available. That may make them worthy choice for some people. (As Engadget reports, Verizon plans to roll out a netbook promotion by this summer.)

We're currently trying out one of the AT&T netbooks with its service, and will share our findings with you soon. Meantime, check our latest Ratings of netbooks, available to subscribers, as well as our buying advice on laptops and netbooks. ?Mike Gikas

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