The battle for 4G is heating up, but no one's actually using 4G technology!

Americans have terrible mobile broadband network infrastructure, yet our service providers make it sound awesome. Now that 2 of our 4 national wireless providers now offer 4G service, one might conclude that the United States is awash in mobile broadband. But neither of these supposed 4G offerings is anywhere near fast enough to meet the ITU standards for 4G, and even our 3G networks woefully under-perform vendor promises. With no teeth in “truth-in-advertising” laws, it begs the question of what these supposed standards really mean.

Flashback: The 3G Rollout

When EDGE was added to existing GPRS networks by “2G” GSM carriers, many chose to advertise it as “3G”. For example, Cingular (forerunner of today’s AT&T Wireless) called their nationwide EDGE rollout a “third-generation” technology, clearly trying to capitalize on the buzz created by competitors Verizon and Sprint with their EV-DO 3G network. Cingular responded that EDGE was theoretically fast enough to be considered 3G, and this argument was eventually accepted, with EDGE added to the official list of 3G standards.

But EDGE wasn’t fast. Although theoretically capable of 1 Mbit/s throughput and 10 ms latency, the Cingular EDGE network was barely faster than the old GPRS network it replaced. Customers weren’t fooled, and although EDGE equipment became widespread, it wasn’t much of a selling point.

Then Cingular (now AT&T) decided to roll out HSPA technology, which offered “real” 3G speed. Suddenly, the EDGE network wasn’t 3G anymore (though they still call it “third generation” today). They began another nationwide 3G rollout, this time using HSPA for “up to” 14 Mbit/s downloads and 5.8 Mbit/s uploads once they turned on HSDPA and HSUPA. Although real-world performance lags, AT&T 3G is faster than their competitors. This is the 3G network that iPhone customers love to hate, and it still hasn’t reached the mid-American city where I live.

Sprint/Clear WiMAX: New Technology, Old Performance

Sprint and ClearWire got together in 2008 to launch a ”4G” network using WiMAX technology. This is the network that supports the Google Android-powered HTC EVO 4G phone, currently the darling of many technology folks who read this blog.

WiMAX is clearly a new technology, and the Sprint/Clear rollout has already cost billions. Yet WiMAX isn’t actually all that fast: The US network is limited to 6 Mbit/s download and 1 Mbit/s upload. This is slower than the HS(D|U)PA “3G” networks of AT&T and T-Mobile, and not much faster than the existing EV-DO Rev A networks of Verizon and Sprint itself.

Indeed, WiMAX isn’t anywhere near the 100 Mbit/s target set by the ITU-R as a minimum standard for mobile 4G networks, and will be hard-pressed to reach the ITU’s 1 Gbit/s fixed-location mark. Although WiMAX is a fourth-generation wireless technology, the ITU says it isn’t “4G”. But Sprint and Clear don’t care – they’re rapidly rolling ahead with sales of their “4G” hardware.

T-Mobile 4G: Play It Again

Then there’s the T-Mobile USA “4G rollout”. In light of the WiMAX push, T-Mobile decided to upgrade their existing network with HSPA+ technology. The company is aggressively selling this as 4G, and claiming they have the largest 4G network in the country.

HSPA+ definitely isn’t 4G according to the ITU. And it’s not a fourth-generation technology, either. HSPA+ is an evolution of the HSPA 3G technology already used around the world. But it works.

Unlike WiMAX, HSPA+ generally out-performs existing 3G networks by a wide margin. T-Mobile USA (and Telstra in Australia) are using a 21 Mbit/s variant that is noticeably faster than HSPA 3G, EV-DO Rev A, and Sprint/Clear WiMAX.

Stephen’s Stance

Neither WiMAX nor HSPA+ are true 4G networks according to the ITU, but it really doesn’t matter what some standards body says. Both are faster than existing technology, and both have the potential to benefit mobile broadband customers. Every technology under-performs its theoretical limits, and this is especially true with wireless networking gear. Perhaps the ITU should take what it’s calling 4G and rebadge it 5G – although LTE will be introduced next year, it won’t reach official 4G speeds any time soon.

It is frustrating to see consumers confused about naming, however. Cingular was insincere with their “third-generation” EDGE campaign, and this became obvious when they deployed real 3G technology. Although I can understand AT&T, Verizon, and Sprint getting upset about T-Mobile’s “4G” campaign, they don’t have as much to complain about this time around. T-Mobile is delivering blazing fast technology that beats everyone else in the industry and they deserve credit for that. As for me, I’d be happy with plain old 3G coverage!

Image credit: Cell Tower by live w mcs

© sfoskett for Stephen Foskett, Pack Rat, 2010. | 4G: Is It Really A Standard If No One Cares?
This post was categorized as Apple, Computer History, Everything, Personal. Each of my categories has its own feed if you'd like to filter out or focus on posts like this.

How Did It Come To this?

Apple spent most of the past decade as the darling of techies and iconoclasts, a tricky position to be sure. OS X, with its UNIX underpinnings and NeXT foundation, was loved by hardcore nerds, many of whom abandoned Windows once Macs moved to the faster (and somewhat cheaper) Intel CPUs. And Apple always had a strong foothold among anti-establishment (read Microsoft) types – teachers, artists, and the like. These combined demographics supported the company for a while, but it was the public failure of Windows Vista, a friendly PR campaign, and a successful retail strategy that led to the resurgence of Apple in the market as a whole.

It’s easy to forget now, four years “After iPhone”, just how awful the mobile phone world was before Apple’s phone arrived. This is especially true of the United States, where iron-fisted carriers seemed to spend all their time coming up with new ways to exploit their locked-in customers. But, apart from a few bright spots like the high-end Nokia models, the handset market worldwide was downright depressing. Handset makers were happy to disable or remove features, withhold updates, and tailor hardware to appease carriers in exchange for access and subsidy money.

Then the iPhone came, and everything changed. Although many previous mobile handsets had been desirable, none had the public success of this Apple product. It has become the singular “must-have” phone in nearly every market, and competitive conditions have allowed Apple to dictate terms to the carriers everywhere but the United States. Software updates have allowed Apple to sidestep the carriers in previously-captive areas like ringtones, music, apps, and video conferencing support. All of these cash cows are now in Apple’s hands.

USA Versus Them

Apple is tied to AT&T in the United States (for now...)

But the American situation is different. AT&T’s exclusive deal allows them to push back on Apple’s moves, and this has resulted in suppression of certain features disagreeable to the carrier. Although some areas (ringtones, apps, music, GPS, and Bluetooth support) have opened up across the market, AT&T was adamant in its opposition to MMS, tethering, 3G video, and other network-sapping features. The carrier now allows tethering, but customers on unlimited plans cannot use it.

The unavailability of these features has led to frustration among American iPhone customers. Since American tech bloggers remain in the majority, this has led to a backlash against Apple among the cognoscenti that puzzles much of the rest of the world. Most international carriers have long since enabled all of the iPhone’s features, from MMS to tethering, and will likely support FaceTime video chat over 3G once Apple can tune the codecs to make it work reliably.

The difference in iPhone experience is competition. AT&T is able to restrict these features because consumers can’t (easily) jump ship to another carrier and keep their iPhone. Given the choice between restricting the iPhone in a given country and not selling it there at all, Apple makes the same decisions Motorola, RIM, Nokia, and others made in the past. This is why the China Unicom iPhone lacks Wi-Fi hardware and why tethering and other features are restricted in the United States.

Competition might not immediately open up all iPhone features. After all, AT&T and Verizon still widely restrict tethering on Android phones even though Sprint allows it. But competitive pressure will inevitably force change. If Sprint’s Android bet pays off in the form of subscriber market share their larger competitors will certainly change their stance on restriction of features. The same will likely happen once the iPhone becomes available on other American carriers.

Stephen’s Stance: Apple Is Stealing Back Their Mojo

Apple can’t be happy being labeled the bad guy for AT&T’s restrictions. But they seem perfectly content imposing rules of their own on their customers. In fact, I suspect that Apple had more to do with rejecting the Google Voice app than AT&T, but the reason is more complicated than protecting their carrier or keeping a competitor from replacing a key part of their product.

In my opinion, Apple has a long-term plan to “liberate” consumers from the wireless carriers altogether, welcoming them to the Apple-sphere with open arms. They will grudgingly put up with limits and abide by exclusivity agreements to get critical mass in the market place, but are engineering a coup in the background. If things go their way, Apple will soon reduce carriers to mere network connectivity providers, shifting all services (voice, text, data, software sales, etc) into their own pockets.

Although it might not look like much today, FaceTime is key to this strategy. FaceTime makes voice-over-IP usable in a way that no other application has, even excellent ones like Skype, Google Voice, and Magic Jack. Apple is building a transparent and user-friendly experience leveraging standard protocols like SIP and placing themselves at the middle of this new network. iPhone 4 customers can already place calls without touching AT&T by tapping the “FaceTime” button in Contacts. It’s simplicity itself, and it won’t be long before audio-only multi-platform calling is enabled. Soon, AT&T and other carriers will be a lot less powerful.

As Stuart Henshall says, ”FaceTime facilitates a way for Apple to take over the mobile numbers from the carriers and then uses them to build their VoIP network and replace the traditional numbers.” I couldn’t have said it better, and wish I had read his article before writing mine!

Will Apple be greeted as liberators or tyrants? This is the real challenge for the company. Their growing market position is largely based on the widespread belief among consumers (if not techies) that Apple is on their side. The sky is the limit if the company can make their end-run around the carriers and maintain this friendly public face.

Image credit: “Ball ‘N Chain” by WyldWoods (WW.N)

© sfoskett for Stephen Foskett, Pack Rat, 2010. | How Apple Will Get Their Mobile Phone Mojo Back From AT&T
This post was categorized as Apple, Computer History, Everything, Personal. Each of my categories has its own feed if you'd like to filter out or focus on posts like this.

The Queen Is Dead

The iPhone is the best thing that ever happened to the modern AT&T. Thanks to Apple, AT&T grew their customer base even though their GSM network was unable to compete with Verizon’s EV-DO in the USA. Thanks to Apple, AT&T was immune to the attack of the Androids and deep-sixed Palm. In short, thanks to their exclusive deal for Apple’s game-changing iPhone, AT&T survived as one of the “Big Two” of US wireless companies.

This can’t last forever. Android gets better all the time, and the 2.1 and 2.2 ‘Droids have emerged as real competition for the iPhone.The superiority of Verizon’s 3G network will continue to tempt customers until 4G takes over the entire industry. Prepaid mobile is killing the basic (non-smartphone) market. Finally, maybe not today and maybe not tomorrow, but soon AT&T will lose their exclusive hold on the iPhone.

Strangeways, Here We Come

AT&T has about 25% of the US mobile handset market, and seems desperate to maintain these customers and the revenue they bring. They seem prepared to do whatever it takes to make this happen, and will use the forthcoming iPhone HD (or whatever it is called) iPhone 4 as a pawn. We’re about to witness some strange moves.

How will AT&T maintain and grow its customer base for an inferior (and infuriating) network amid serious competitive pressures? It’s all about the smartphone contracts!

1. Sign ‘em up! The reduction in data plan pricing makes smartphones much more attractive, expanding the market and enticing basic phone customers to jump into a contract for something like a new iPhone.
2. Get ‘em back! Existing iPhone customers are reaching the end of their contracts, so AT&T will encourage them to sign on for 2 more years by allowing them to upgrade immediately (see below).
3. Lock ‘em in! AT&T ramped up early-termination fees for smartphones effective June 1. Leaving AT&T with your iPhone will now cost $325, with a $10 monthly decrease until the 2-year term is reached.

Frankly, this is a brilliant plan. AT&T can’t give iPhones away for free – Apple under Steve Jobs would never allow their products to be devalued like that. So they’ll use everything else at their disposal to bring in higher-value iPhone customers, even if it means losing a bit of data plan and hardware upgrade revenue in the short term.

How Soon Is Now?

So if you’re an existing iPhone user, how soon will you be able to upgrade? How about now?

I upgraded my original 2G iPhone to a 3GS in late-November, 2009, signing a new 2-year contract in the process. I didn’t mind the contract – AT&T and Verizon charge about the same for service, I love my iPhone, and I’ve got a Family Talk plan going with two other contracted lines. I’ve been an AT&T customer for almost 10 years (since the Cingular days), and will probably remain for the foreseeable future.

Considering that I just upgraded to the iPhone 3GS in November, I assumed I would have to wait another 6 months or more for an iPhone HD iPhone 4 upgrade. But AT&T just accelerated my upgrade date to now.

This is really amazing: These long contracts aren’t just about provider lock-in; they’re also about recouping the cost of subsidizing expensive hardware like my new iPhone 3GS. AT&T is so desperate to keep me as a customer that they’ll let me walk away with a nearly-new top-of-the-line iPhone after just 6 months!

Wondering if you’re eligible for an upgrade? Try this out:

1. Using your AT&T-contract iPhone, dial *639# (that’s “*NEW#”)
2. You’ll get a (free) text message letting you know if you’re eligible.

If your text looks like the message below, you’ll probably be watching Steve Jobs’ iPhone HD iPhone 4 unveiling tomorrow with extra interest!

Are you upgrade-eligible? AT&T made me eligible after less than 8 months!

Stephen’s Stance

AT&T is desperate to retain their customers, and it shows. The market has shifted, and they will do whatever it takes to compete with Verizon, even if it means letting folks like me upgrade from really-new to brand-new hardware. If this is was market pressure looks like, I love it!

But Apple is under pressure, too. The HTC EVO is, by all accounts, a great phone, and Android 2.2 might just make the sluggish Nexus One worth tolerating. Then there’s the undeniable fact that smartphones are commoditizing. Is Apple’s walled garden of delights unassailable? We shall see!

Update: Steve Jobs unveiled the iPhone 4 today, and confirmed that “AT&T is going to make an incredibly generous upgrade offer. If your contract expires at any time in 2010, you can upgrade to the iPhone 4. You can get it up to six months early.” Your mileage may vary, but it seems that AT&T is making even more-generous offers to some based on their monthly bill!

© sfoskett for Stephen Foskett, Pack Rat, 2010. | AT&T Is Desperate: iPhone Upgrades For Everyone!
This post was categorized as Apple, Everything, Personal. Each of my categories has its own feed if you'd like to filter out or focus on posts like this.

Expensive unlimited data plans enrich the carriers and benefit few customers

The end of unlimited data is nigh! As I discussed in yesterday’s post, AT&T’s announcement of limited data packages at lower prices has everyone up in arms. But the switch to a-la carte data is a positive move for everyone involved, including AT&T, the customer, and the US wireless phone industry as a whole.

Reality Check

Despite the hollers from the crowd, AT&T is not proposing pay-per-byte service. Their new plans serve up moderate (200 MB) and generous (2 GB) portions of data at much-reduced monthly fees of $15 and $25, respectively. Overages trigger large additional blocks of 200 MB for $15 or 1 GB for $10, respectively, and those on the smaller “DataPlus” plan can upgrade to “DataPro” on demand during months of heavy usage.

AT&T claims that 98% of smartphone users transfer less than 2 GB of data per month, and I’m betting that’s true even of iPhone power users. Of course, some people might use crazy amounts of bandwidth: Video streaming, Internet radio, and tethering come to mind. But I wonder how much data even the first two will require once they become available and popular. An hour-long podcast is about 25 MB, so Pandora, iTunes Live, and Spotify are presumably about the same. One could listen to those sites for 80 hours a month without exceeding AT&T’s new $25 2 GB DataPro package, and an additional 40 hours (1 GB) would only be $10!

The carrier also claims that 65% of smartphone users will be able to save money by opting for the $15 200 MB plan, and that this will drive further adoption of smartphones. Heavy iPhone users probably make up the outlying 35%, but the more-casual iPhoners will be able to cut their bill in half by selecting this plan.

Easy Savings

My own household includes three iPhones. My iPhone 3GS usage hovers around 400 MB per month, and I frequently stream audio from MLB.com At Bat and my favorite podcasts over the air. The other two iPhones average just 50 MB per month, with the occasional spike of around 100 MB. We currently pay $80 per month for data service: Two 3G plans at $30 and one original plan at $20. Under the new system, we can reduce our monthly data bill to $60 by switching the 3G phones to the $25 and $15 plans, respectively.

Don’t know how to stream big podcasts? Check out my article, How To Stream Any Size Podcast to an iPhone, Even Over 3G or EDGE!

We could trim the cost even more by moving both 3G phones to the $15 DataPlus plan and judiciously switching to DataPro during months of increased usage. I could also make more-frequent use of free Wi-Fi service at Starbucks, McDonald’s, Panera, and the local coffee shop, or flip on the Cradlepoint PHS300 and use my unlimited EV-DO hotspot. I imagine most iPhone users could economize similarly.

Follow the Money

Unlimited data plans hurt us all, forcing us to pay for the excesses of a few and limiting the availability of the coolest devices. Let’s get back to AT&T’s numbers for a moment. According to AT&T, only 2% of their smartphone customers transfer more than 2 GB of data per month. With everyone paying the same flat rate for unlimited data, each of those data gluttons was being subsidized by the bills of 50 regular subscribers. This kept monthly data fees artificially high and limited the adoption of smartphones in general. Even the iPhone, a smashing success by any measure, probably lost customers due to the high cost of data service.

But it gets worse. If 65% of smartphone users consume less than 200 MB of data per month, and AT&T can make money selling that much data at $15, then the company was pulling in seriously-massive profit margins until now. AT&T has between 15 and 20 million customers using smartphones, so this represents at least $150 million in monthly profit. All but the heaviest 2% of data users were profitable, and the company was gouging everyone else and pocketing the cash. Sure, they’ve spent some money on upgrades, but the AT&T 3G network is notoriously bad, from bottlenecks and dropped calls in New York to poor coverage in the heartland.

Then there’s the sorry state of competition among mobile phone carriers in the United States. Thanks to carrier locks and exclusive deals, the price for wireless data service remained fairly static until now. Unlimited data at $30 became an unofficial fixed price, and as Planet Money noted recently, price ceilings tend to act as a magnet. Perversely, the widespread availability of unlimited data plans kept prices artificially high. Until AT&T’s announcement, no one was willing to make the first move and initiate real competition.

Stephen’s Stance

Many criticized yesterday’s article, claiming a “peace of mind” benefit from “all-you-can-eat” offerings. I can understand their desire to know exactly how much their bill will be, no matter what their teenagers decide to do with their phone. But they should also consider that, all this time, they were subsidizing data gluttons, getting ripped off by their carrier, and restraining competitive pressure to lower prices. How much are they willing to pay to achieve a bit of mental calm? And aren’t these facts troubling, too?

I can’t wait to see Verizon’s response. AT&T’s pricing changes and their recent early-termination fee modifications mean they’re scared to death. Perhaps the rumors of Verizon iPhones and iPads aren’t off-base after all. At long last, we might be witnessing a real shake-up in the American mobile device market, and that’s something we can all cheer for!

It’s not all roses, though. Unlimited data promised to usher in a new era of mobile video and other innovative applications. It also posed potential competition for wired broadband providers, another market in serious need of competitive pressure. I’ll take a look at the downside tomorrow.

Note: Some of these links include affiliate codes that help pay for this blog. For example, buying an Amazon Kindle with this link sends a few bucks my way! But I don't write this blog to make money, and am happy to link to sites and stores that don't pay anything. I like Amazon and buy tons from them, but you're free to buy whatever and wherever you want.

© sfoskett for Stephen Foskett, Pack Rat, 2010. | The End of Unlimited Data – Part 2: Who’s Being Subsidized?
This post was categorized as Apple, Everything, Personal. Each of my categories has its own feed if you'd like to filter out or focus on posts like this.

Buffet-style pricing for wireless data is coming to an end

The headlines are all over the blogs: AT&T announced today that they are doing away with “unlimited” data plans and replacing them with limited packages at lower prices. I’m not going to repeat the news – Boy Genius Report has the best overview I’ve seen. Instead, I’m going to explain why I think this is a positive move for everyone involved, including AT&T, the customer, and the US wireless phone industry as a whole. This first post talks about the buffet mentality that got us here.

One Size Fits All?

Americans love all-you-can-eat buffets. It’s not that we can really eat everything in sight, though many non-Americans I’ve met seem to think we can. No, we love the idea that we can eat anything we want without paying a penalty.

A few years back, I talked to the manager of a buffet stocked with prime rib and champagne and asked about the finances of his operation. He laughed and admitted that some customers do indeed consume far more than they pay for. But the majority of his customers eat only a little more than they would if paying a-la carte, and they more than make up for the gluttons. The buffet manager also confided that although many people feel guilty and even apologize for gorging on expensive food and leaving some un-eaten, he rarely hears complaints about the price being too high. His customers say they are getting a deal too good to be true, even as he rakes in the profits.

All-you-can-eat pricing seems like a win-win situation, but it’s also incredibly wasteful and inefficient. It encourages people to over-indulge, to act impulsively, and to ignore the consequences of their actions. They think, “People may be starving somewhere else, but I paid the entry fee so I’m going to try some of everything!” At the same time, economics teaches us that there is no such thing as a free lunch: Buffets wouldn’t exist is they weren’t profitable. Just like the casinos in Las Vegas, buffet restaurants exist because they are able to maximize overall profit even as a few winners beat the system.

The Smartphone Tax

You want an iPhone? You have to take the only data plan AT&T offers (for now!)

Does this talk of buffets and casinos remind you of your wireless data provider? It should! American wireless companies have converted from the tight competition and slim margins of voice calls to the fat profits that go with data plans. AT&T and Verizon have come to dominate the market, but every company happily feeds the desire for all-you-can-use data.

Buy an iPhone or Droid today and you have a variety of voice plans to choose from, ranging from just $10 for a “family talk” line to over $100 for solo unlimited calling. Plus, offerings like AT&T’s A-List allowed customers to squeeze their talk time even more.

But (until today) smartphone buyers were forced to take the standard data plan: “Unlimited” data for a flat $30 per month. The “data tax” for smartphones is scandalous: AT&T and Verizon didn’t bother to compete here because they had their customers over a barrel. Want an iPhone? You have to pay $30 extra per month for data – and $5 or more for text messaging!

These “unlimited” plans weren’t all they were cracked up to be anyway. See my post about The Dark Side of Unlimited Mobile Phone Plans.

My family recently added an additional iPhone and I was shocked to see that the data rates were not even listed on the paperwork: By signing up, we “agreed” to pay AT&T’s standard data and text messaging fees, whatever they were. Although the salesman promised we could still get the old $20 data and text service since I was re-activating a first-generation iPhone, they couldn’t get it running. So they handed us a 3G iPhone and activated it at $20 instead. Later that day, AT&T unilaterally changed it to a $30 data plan, and there was nothing we could do.

Stephen’s Stance

The sad thing is that regular people don’t really use all that much data. Like buffet patrons, we all want flat-fee unlimited use but don’t come anywhere near breaking the bank. Two of the three iPhones in my family use less than 40 MB of data per month, making the required $30 unlimited plan an egregious expense. Even a power user like me rarely breaks 500 MB in a month, and I regularly stream audio! Although the iPhone is an awesome multimedia device, it’s difficult to use a GB of data in a month on a smartphone.

Should smartphone buyers who don’t use streaming services subsidize those who do? Of course not! I’m cheering about AT&T’s new limited data plans, and I explain more in my next post on the subject.

“All You Can Eat” image by johnsam

© sfoskett for Stephen Foskett, Pack Rat, 2010. | The End of Unlimited Data – Part 1: The Buffet
This post was categorized as Apple, Features, Personal. Each of my categories has its own feed if you'd like to filter out or focus on posts like this.

Squeezing Minutes

Mobile phone plans in the USA generally give you a “bucket” of day-time minutes, but plans diverge wildly beyond this. Heated competition means providers add and remove features constantly to “one-up” each other. Roaming, free nights and weekends, and unlimited in-network calling have all spread to every carrier, including AT&T. But prime daytime minutes are still premium-priced.

AT&T’s signature feature a few years back was roll-over minutes, allowing you to “bank” unused minutes from month to month. Competitors responded with completely unlimited calling plans, and all carriers offer unlimited any-time voice calling for around $100. But these unlimited plans aren’t perfect: They are seriously expensive, don’t include data or texting, and are not compatible with cheap add-a-line “family talk” options. Since I have three phones on my 1400-minute AT&T plan, moving up to unlimited would bump the voice-only portion of my bill from $110 to $170 per month!

Circle of Friends

One feature recently migrating to AT&T is unlimited named-circle calling, allowing you to pick a few out-of-network or land-line numbers to call for free any time. AT&T quietly added this feature last year, calling it “A-List,” but leaves it inactive by default for existing customers. Used creatively, A-List is a great way to reduce the number of minutes you use.

To activate A-List, either call AT&T customer service (dial 611 from your phone) or log in to AT&T Wireless online. The feature is available at no cost on individual plans with 900 minutes or more ($59.99+) or FamilyTalk plans with 1400 minutes or more ($89.99+). Most iPhone users probably already have one of these plans. Individuals get 5 A-List numbers, and FamilyTalk plans get 10 shared among all phones.

Once A-List has been added to your account, go through your bill and look for the numbers you spend the most time calling. Remember that AT&T wireless numbers don’t cost anything anyway, so don’t add these to the list. Focus especially on conference calling numbers for regularly-scheduled meetings, since you know you’ll spend a lot of time on these numbers. Remember too that “toll-free” 800 and 866 numbers still eat up mobile calling minutes and are great candidates for the A-List!

Results

I added a few calls I regularly make to FreeConference.com, WebEx, and Live Meeting and noticed an immediate reduction in my use of minutes. In fact, I no longer need anywhere near 1400 minutes on my plan after switching 5 regular meetings to the A-List. I also added my Google Voice number, since I can route any unexpected extended calls through that service.

A-List is a great way to save some serious money. Once my kids get mobile phones, I expect I’ll be adding a few friends’ numbers to the list, too. Let’s hope AT&T keeps the feature alive, though, since T-Mobile has already axed their similar feature!

© sfoskett for Stephen Foskett, Pack Rat, 2010. | AT&T iPhone Users: Activate A-List and Save Money
This post was categorized as Apple, Personal. Each of my categories has its own feed if you'd like to filter out or focus on posts like this.

So I called AT&T and asked for a reprieve.  Surprisingly, the friendly (!) rep offered to remove the charges (!) and change my plan.  I could pay $10 or $30 more for a larger pool to chat in or $50 more for “unlimited calling.”  So I asked for details.

Turns out “Unlimited” actually feels kind of limiting, and I’m not alone in my reaction…

1. (On AT&T) only voice calls are unlimited for $99
2. The iPhone data plan (which is actually really nice and cheap) is $20 extra
3. Text messaging is still embarrassingly expensive and limited
4. This is the real kicker – additional family lines are not available with unlimited calling, so I would have to pay $30 or more extra to keep my wife’s line active, even though she used 8 minutes of talk time last month.

So no thanks, AT&T.  I don’t want to upgrade my calling plan to unlimited and pay $80 more per month.

© sfoskett for Stephen Foskett, Pack Rat, 2008. | The Dark Side of Unlimited Mobile Phone Plans
This post was categorized as Personal. Each of my categories has its own feed if you'd like to filter out or focus on posts like this.

The Ugly American

Europeans are familiar with the conceptual separation of mobile phone service from mobile phone hardware, but it is hard for Americans to grasp. Although locked mobile phones and contracts are common “over there” too, alternatives abound. With ubiquitous GSM service (and the accompanying standard SIM cards), Nigel or Jean or Enzo can expect to walk into a local store, select a (quite expensive) mobile handset, stick his old SIM card into it to transfer the number (and his contacts), and start talking. They might need to replace that SIM sometimes, or swap carriers, and definitely pay more for many services, but the portability and choice found in most other markets would shock an American.

We’re shackled to a few carriers who claw and fight for their share of the locked-in phone users by dangling exclusive subsidized handsets at a million outlets in every town and mall. Want an iPhone or a Moto Q or a Centro? Sign up for two more years, please, and maybe pay a few hundred to get out of your old contract and switch carriers. And forget taking a phone from one carrier to another, or buying a new unlocked phone at any retail store – they simply didn’t exist!

The World Has Turned

We were told that this had to do with our unique geography. Building out a “cell” network was massively expensive, and carriers had to have a guaranteed customer base to justify the investment. Although roaming was cripplingly expensive, the (real analog) cell phone system worked pretty well, and there were just a few handsets to pick from anyway.

But now it’s a different world. While AT&T/Cingular and T-Mobile jumped on the Euro-GSM bandwagon, Verizon and Sprint stuck with Qualcomm and we saw massive investment in incompatible digital networks just as handsets, mobile broadband, and media applications exploded. Stir in some mergers, MVNO’s, prepaid wireless, number portability, crummy coverage, and a succession of Jesus Phones, and you have an American public that desperately wants a more open system.

Opening in 2007

The industry took steps toward openness in 2007, setting the stage for what will come this year. Here’s an update:

• Apple’s iPhone is released with a strong AT&T lock, but sales are shared with online and brick-and-glass Apple Stores. More importantly, Apple takes over most customer service duties and shaves off a large (though unspecified) portion of monthly revenues. The cost of the phone is high but in line with its glamorous high-end predecessors from Motorola and Nokia.
• One more thing about the iPhone: AT&T lets current customers upgrade without any penalties, no matter how new their contract was.
• Verizon announces an open network policy, which turns out to be less than it sounded but is still a step in the right direction.
• AT&T decides to pro-rate early contract termination fees and seconds Verizon’s “any phone” claim. They also put up with Apple’s demands in order to capture half a million new customers.
• Google’s Open Handset Alliance includes Sprint and Qualcomm as well as T-Mobile and other GSM makers, signaling that Android-powered devices will be available for all US networks. Although these “open” handsets will not necessarily be any less locked than current devices, a new flexible platform might enable new entrants to the unlocked market.
• Google is successful in adding open access language to the 700 MHz spectrum auction.

Sharpening 2008′s Image

American wireless providers and handset makers have spent 2007 dancing around open(er) access, but openness got a late push from perennial geek pariah, Sharper Image. The store gadget lovers love to hate unveiled a line of unlocked GSM phones in November. The predictable ridicule directed towards these rebranded phones in geek circles (once they noticed, in December) totally misses the point: Sharper Image is selling the first widely available over-the-counter unlocked phones in the USA, heralding the day when their customers (regular folks, not you) decide to upgrade just their handset. I predict a similar move from Radio Shack, Costco, Wal-Mart, Circuit City, or Best Buy in 2008. I also expect Sprint and T-Mobile to reiterate that unlocked phones are welcome on their networks.

There is one more interesting thing about Sharper Image: they have stores inside every major airport in the USA! The next time Nigel comes across the pond, he might start a revolution by buying an unlocked handset at the Sharper Image airport shop just like he would back home at The Carphone Warehouse. And won’t Joe and Jane Mainstreet love the option of replacing the AT&T phone they just dropped in the sink, without extending their contract?

Net nerds have long scoured eBay for the latest unlocked phones, but not everyone is comfortable about the online purchases from sellers they don’t know. Once average people start buying phones without service plans at a store they trust, the floodgates will open.

In 2009, all major retailers will offer off-brand unlocked GSM and CDMA phones. As Verizon shifts to 4G LTE (aka next-generation GSM), carrier lock-in will become optional, and the market will be the better for it.

Update:

If you’re interested in this line of reasoning, I recommend checking out the following articles:

• How Apple Will Use The iPhone To Take Over The Wireless Industry, and the follow-up, Apple Did Blow Up The Wireless Industry
• Research Note: iStrategy
• The Untold Story: How the iPhone Blew Up the Wireless Industry
• How the mobile phone market works in Asia and Europe

© sfoskett for Stephen Foskett, Pack Rat, 2008. | 2008 – The Year the US Mobile Phone Market Normalizes
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