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Lower Your AT&T Data Bill with Onavo for iPhone

Three things in life are certain: death, taxes, and having to pay for a data plan for your iPhone. But what if you could pay less for data -- while still consuming the same amount of it?

The potential for such money-saving magic comes from Onavo, a clever app that compresses your iPhone's data stream so you consume less data overall. How much less? Up to 80 percent, according to developer Onavo Mobile.

That means if you're in a roaming area, like overseas, you stand to lower your data costs. And if you subscribe to AT&T's DataPro plan, you might be able to downgrade to the cheaper DataPlus. Interesting, no?

The first time you run the app, it installs a new profile on your iPhone, one that allows the service to act as a proxy server. Translation: All your data gets routed through Onavo's servers.

(Privacy worriers, take note: The company does collect certain kinds of traffic-related information, like session durations and IP addresses, but doesn't sell any "personally identifiable information" to third parties. Read the company's privacy policy if you have concerns.)

Onavo compresses inbound data for apps like Safari, Mail, Facebook, YouTube, and Google Maps, and does so entirely in the background. In my tests, I noticed no performance hit while using these and other everyday apps.

Indeed, I first installed Onavo back in April -- and subsequently forgot about it. That's how invisible it is to the user experience. Since then, the app reports it has saved 22 percent of my total data consumption. That's a far cry from 80 percent, but it's still significant. With Onavo on the job, I could easily downgrade to DataPlus from my current DataPro -- and save $120 annually.

The app provides interesting stats on your data usage (including an app-by-app breakdown) and how much of it you've saved overall. Alas, for the moment it doesn't support streaming or VoIP apps like Netflix and Skype.

Other disappointing news: Onavo is currently limited to AT&T-powered iPhones and iPads. Verizon support is in the works, as is an Android version of the app. (Onavo Lite is now in beta for Android if you want to sign up.)

The Onavo app is free, though it won't always be -- the company has yet to decide when the "premium model" will start and how much it will cost. Obviously they'll need to keep it reasonable so there's still value in using the service.

Bottom line: Onavo works, and it has the potential to lower your monthly AT&T bill -- perhaps substantially, if you're paying for a lot of iPhones. I highly recommend giving it a try.

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