AT&T has pulled the reins on unlimited data while announcing two new mobile data plans. The only consolation is for the current AT&T subscribers who will be allowed to keep their unlimited plans, even upon contract renewal. However, new subscribers will have to choose one of the two new plans – $25 plan will offer 2 gigabytes of data per month with $ 10 for additional gigabytes and $ 15 plan for 200 megabytes of data with $15 for 200 megabytes if you go over that. The announcement has comes in just in time for the expected unveiling of Apple Inc.’s new iPhone in the next week.

The $25 plan will replace the existing $30 plan (with unlimited usage), which is available for the iPad. However, iPad owners who are comfortable with $30 plan can hold on to it as long as they pay $30 per month.

The new plans will offer a cheaper option for light users and restrict usage among heavy users. By doing so, the burden on the overworked network will be reduced too. According to AT&T, the top 3% of data users consume 40% of network bandwidth. They are hoping to reduce the stress on the network upon introduction of these plans. Although it makes sense, the data caps have come at a time when carriers are beginning to lift caps and are promoting unlimited calling and unlimited text messaging. However, analysts believe that this move could be followed by other phone companies too.

AT&T has also announced the introduction of tethering. Users will be charged $20 extra per month for this privilege of sharing connection across devices. The limits apply only on AT&T’s cellular networks and not take into account data usage over Wi-Fi, including AT&T’s public Wi-Fi hot spots. AT&T will help customers monitor their wireless data usage through free text messages for usage intervals and online tools, which includes a smartphone app that shows monthly usage information.