Saturday

Droids, Hero(s), iPhones


Forget all of the speculation about whether this phone or that phone is an iPhone killer. Most of the reviews are essentially the same. And the discussion should not be about the hardware, as much as it should be about the network and the outrageous limitations placed on the subscriber's use of the hardware.

Take for example, Verizon's series of "there's a Map for that" commercials. Verizon Wireless, partly owned by VodaPhone, is also the successor to the old GTE and Bell Atlantic, which the latter evolved from acquiring NyNex and others. Due to their legacy systems and costs, they saw their market share dropping as a result of wireless and internet competition. They have never REALLY been competitive (just look at their Public Service Commission filings in the states where they operate) with other telecommunications companies. And now, they want to criticize the Apple-AT&T partnership (which is odd, since they were also part of the old Bell RBOC structure) and make some potential customers think that a better deal is being offered by the carrier.

The best wireless deals come from companies like Boost (which operates on the Sprint all-digital network), MetroPCS, and StraightTalk (via Wal-Mart and TracPhone and operating over Verizon's network) in all-you-can-eat packages for $50 or less per month. If you talk a lot, and need email access, these are good deals.

Buy an iPhone and pay a minimum of $70 per month to AT&T for their data plan add-on. Buy a Droid, and pay the same minimum to Verizon Wireless. Likewise, at Sprint, buy a Hero for $179 with a two-year contract, and be forced to buy or upgrade to one of two unlimited data plans starting at $70 per month. Read the fine print at AT&T or Verizon, and you will find that you need to peel more dollars from your wallet for text messaging and/or picture mail, mobile-to-mobile, MMS, etc. Most subscribers will be paying $100 per month or more for the 'privilege' of carrying around a neat handset (which will be the last generation in a few weeks or months).

At some point, subscribers will realize how much money is being spent while the handset is sitting idle next to their PC. If they are in a hotspot, they have the same functionality on a netbook or notebook with a larger screen. And if they are on Skype, they can call all over North America for $2.95 per month unlimited.

So, why are the wireless carriers charging $100-$140 per month for unlimited calls? And why won't they include tethering as part of the package? And why do they have limits on data usage (read the contract)? And why is the early termination fee (ETF) so high? And why is there a two year contract? And why does off-peak airtime begin after 9pm (for most carriers)? And why does Sprint require one of two data plans for the Hero, Pre, and Moment, when many customers already have unlimited data on lower cost plans?

Consumers beware...weigh your options.