Showing posts with label 3g. Show all posts
Showing posts with label 3g. Show all posts

Why are cell phone plans overpriced?

My wife and I love our iPhones. But the costs! Oh, the costs. We're paying Verizon Wireless nearly $200/mo for two phones. I make maybe one phone call a week. And most of the time wifi is available and I could be using Skype instead. I got rid of unlimited text messaging, bringing the cost down by, oh, maybe $20/mo or so, but it's just not enough, and I just can't find a cheaper plan for us on Verizon Wireless. So, I've started to look around. Our contract is not up for a while, but that's not going to stop me from at least looking.

Before we get started, here are three important things to keep in mind when considering these, or any other, cell phone provider and service plan.
  • Avoid WiMAX-based 4G. Sprint's current 4G technology is WiMAX-based (as opposed to LTE-based) andClear is the provider behind the scenes, coverage is poor and the network has seemingly always had issues. We've tried to use Clear WiMAX ourselves both with home service and mobile service. It's just not ready for prime time, and I'm not sure it ever will be. Right now, true LTE 4G is available only on Verizon and AT&T, and the iPhone 4/4S supports neither WiMAX nor LTE as of June, 2012. The take-away here is: Plan your life around 3G service for now.
  • Most of these services actually utilize Sprint's voice and data (3G) network -- which has been demonstrated to be slower than Verizon or AT&T's 3G network. That's not going to be a problem for most users -- you're not going to be downloading movies over 3G. For typical usage consisting of light to moderate web browsing, email and social networking, you'll be fine. Turn on wi-fi as needed before downloading anything big and beefy.
  • Don't believe the "unlimited data" hype. All of these providers will throttle or cap you at some point. For example, Virgin Mobile says that they will throttle you if you utilize more than 2.5 gigabytes of data in a month. Unless you're streaming Netflix over 3G, you're not likely to be impacted by this. The one thing I'll miss is using Skype over 3G, but that's a small price to pay for...a much smaller price to pay ongoing. Also, most throttle instead of suspend service. Throttling is much friendlier than capping, in that you still have access to the internet, just at a slower speed. Providers who cap you will typically cut you off right there and then when you hit the limit, requiring that you pay an extra fee for additional megabytes.
  • Jump on the Google Voice bandwagon! I ported my old cell phone number to Google Voice for a one time fee of $20. Now my legacy phone number rings through to me at whatever phone I specify. I ignored whatever phone number Verizon provided to me, and I won't have to bother with number portability in the near future. If I switch providers, it'll take me about ten seconds to go into Google Voice and modify settings so that calls reach me on the new provider instead of the old provider. This process is transparent to callers -- they have no idea that you've changed anything. Also, Google's handling of voice mail is fantastic -- I highly recommend it. It can SMS you transcripts of messages. It will email you transcripts as well, and it's very easy to play back messages by clicking on the link in email or in the Google Voice app on iOS or Android. Consider this: I've never even bothered to configure my Verizon Wireless voice mailbox.
Now that I've gotten that out of the way, allow me to share with you the top five cheapest smartphone plans/service options out there as of June, 2012, as identified through my research.

Option #1: Voyager Mobile - http://www.voyagermobile.com/
Service plan costs: For an android smartphone, $39/mo unlimited talk, text and internet, including 4G. For a basic flip phone, $19/mo for unlimited talk/text. The details: You need to buy a phone from them, and if you want a fancy one, expect to pay up to $550. Android only, no iPhones. Shipping times are long, it might take 3-5 weeks for your phone to arrive. The 4G service is Clear Wimax, which sucks. (I would not bother buying a 4G device for this service - I think 3G is good enough.) Voyager uses Sprint's network. This is probably the way I'd go if I wanted an Android phone with unlimited service.

Option #2: Ting Mobile - https://ting.com/getting-started/
This is another Sprint reseller, run by internet company Tucows, based in Toronto. Good guys. Pros: They're hacker friendly, so while you do have to buy a phone from them, they don't care if you clone your ESN onto your personal iPhone, so you can use it on their network (if you know how to do that). They're friendly and responsive when it comes to answering questions on their web forums. Cons: The pricing model, while it can be significantly cheaper if you're a light cell phone user, involves doing your own math. They charge a base $6/mo per phone, then you add on various blocks of megabytes, texts and minutes. You could go data only with 1gig/mo for $30/mo. If you pick a large block of minutes (2000), a thousand text messages, and two gigabytes of data, you're up to $88/mo. Might as well stick with the post-paid plans if you're going to be a heavy user. Ting is another land of Android, no iPhone here. I probably wouldn't recommend Ting, unless you are a hacker or have unique pricing needs that might make the math more favorable. (Here find somebody else's thoughts on Ting Mobile.)

Option #3: Cricket Wireless - http://www.mycricket.com/iphone 
As of June 2012, Cricket Wireless says the iPhone 4S is coming any day now. They have their own network, but they utilize Sprint for 3G coverage. For $499 you can buy an iPhone 4S outright, then pay $55/mo for unlimited talk, text and data. They have a smaller network footprint, from what I can tell, so unless you live in a big city, this is probably not the plan for you. Perhaps not good for you, but maybe it's good for me. I'm intrigued by this. I want an iPhone, and I want inexpensive service. I'd consider this provider, though I don't know anybody utilizing them currently.

Option #4: Straight Talk - http://www.shopstraighttalk.com
This is TracFone Wireless behind the scenes, selling via Wal-Mart and online. No iPhone here, but a number of Android phones are on offer. You can pick up an LG Optimus Black for $329 and then for $45/mo you get unlimited talk and text, data/web access. I'm not sure who the provider is behind the scenes -- Tracfone is a reseller of service from Sprint, Verizon, T-Mobile and AT&T, so it might depend on which phone you get. This is the way I'd go if I wanted an Android phone and wanted the ability to be able to walk into a Wal-Mart to buy it, instead of having to wait to have it shipped to me.

Option #5: Virgin Mobile - http://www.virginmobileusa.com
In the US, Virgin Mobile is owned by Sprint. So this is Sprint's network, and you're actually buying the phone and any service directly from Sprint. They have a variety of Android devices, and the prices seem reasonable. They have announced that the iPhone 4 and 4S will be available as of June 29, 2012. If their current plan pricing covers the iPhone, you can get unlimited data and texting and 300 minutes for $35/mo or unlimited data, texting and minutes for $55/mo. You can save $5/mo discount by signing up for auto billing, meaning you can have an iPhone live and on the air for $30/month with a nice amount of minutes and unlimited data. This might be the winner for me, personally, since it's Just Plain Sprint behind the scenes, and not some third party reselling me somebody else's services. I think this is the way to go if you want an iPhone. When my Verizon Wireless contract is up, this is the provider I'll be looking the hardest at.

Doing the math: Starting from zero, plan out how much you'll pay in phone plans and devices over, say, two years. On Virgin Mobile, you'll pay $649 for an iPhone 4S, plus $30/mo for two years, for a total of $1369 over that period of time. For Verizon Wireless, you can get the same phone (or maybe even with more storage) for $299, but you're going to pay perhaps $90/mo for two years, for a total of $2459.

Testing out AT&T 3G

I've had Sprint Mobile Broadband (EVDO) for a while, but my modem is wearing out (USB connector problems) and Sprint just instituted a 5 gigabyte monthly cap. I don't know if I hit that cap, but with that change, Sprint, Verizon, and AT&T all now have a 5G cap, and they all charge $60/month. As a result, Sprint lost any advantage from my perspective, and I decided to see about switching over to service from AT&T.

I stopped in at my local AT&T store today and picked up a USBConnect 881 wireless modem. I stopped at my office on the way home and installed the software. Just plugging in the modem mounts a read-only drive with the software installer on it. No installer CD to lose, which was neat.

The installer takes a good long while, and requires a reboot. After reboot, you wait a good long while for the modem to start up the first time. That's when I started to run into problems. I just couldn't keep an AT&T connection from my office. It would say connected, I could maybe click on one web site, then it'd sit there and I'd get "server not found" errors in Firefox. Literally at the same time as I am browsing the web successfully on my Sprint connection 2 feet to the left.

OK, AT&T fails that test.

I brought everything home (just a few blocks south of my office), and fire it up again. This time I'm sitting right in the window, and I'm able to get a good, solid AT&T connection, according to the software.

Except...it's slow. Really slow. The latency for web browsing is killing me. That's odd, I think to myself. My friends who have AT&T say that "where they have rolled out 3G, it usually feels faster than Sprint."

Well, maybe AT&T hasn't rolled out 3G to my neighborhood in Chicago. Because this is horribly slow. Maybe it's AT&T's fallback network connection, EDGE. (AT&T is still rolling out 3G coverage, but while Chicago is supposed to be covered, my experience suggests that it's not complete. T-Mobile and AT&T are the last national providers still dealing with slow-as-molasses EDGE data networks.)

I did some head-to-head testing on www.speedtest.net and here's what I found:

ISP Ping time ms) Speed: Down (kbps) Speed: Up: (kbps)
AT&T 3G 397 88 61
Sprint EVDO 165 1065 323
Comcast 22 7701 1538


(I tested my home Comcast connection just for fun. It's not really apples to apples.)

Comparing AT&T versus Sprint, the Sprint connection is twelve (12!) times faster for downloading, and five times faster at uploading. Latency, the measure of how long it takes to send the smallest bit of information back and forth, is also important. A web page with eight images means nine requests to a web server. Even if all nine requests are tiny, you get penalized by a higher latency; if the latency is very high, you're really going to feel that nine different times as you wait for the images to load. And Sprint's latency is half as much as AT&T's, meaning the Sprint connection would feel faster, even if it wasn't.

I'm sorry to say that AT&T 3G is not ready for prime time, at least not here in my neighborhood in Chicago. Back to the store it goes.

Update: And back to the store it went. I was an AT&T customer for slightly under 24 hours. The people at the AT&T store were helpful and polite on both trips. It's a shame their network speeds just didn't cut it. After returning the AT&T modem, I went to my local neighborhood Radio Shack and picked up a replacement Sprint modem, which I am now using and happy with.