The Grouse
After running from Sprint, the Grouse predicts the constant battle for decent cellphone service might finally start favoring the consumer

Cell Wars Who will emerge victorious? Lucas Films/Hildebrandt; Apple; Palm; LG

To spend our precious time here together moaning about how royally screwed up our cellphone companies are here in the States would at this point be too easy. You know the drill: Half-assed handsets, crippled functionality, spotty signals, dumbfounding user interfaces, outrageously priced call plans, incomprehensible outsourced customer service reps from a far-off land, and let’s not even talk about the indentured servitude contracts. No, the topic is cliché at this point, so today I’d like to take a positive spin on things. I want to tell you that there’s a silver lining to that foreboding cloud. That things are gonna be alright.

Okay, well I’ll get to that in a bit, but let me bitch about cellphone companies for a little first.

Cellphones continue to edge ever-closer to becoming the Holy Grail of convergence devices—the Tricorders we dream of and deserve, capable of handling our media, messaging, light computing, GPS, personal data, and Web access, in addition to telephony, all with aplomb. But there’s always a wrench in the works, if not a whole tool bag full.

Always:

  • This phone lets you download music on-the-go! (But it’s twice as expensive as doing it on your PC, and you can’t readily swap music files between them.)
  • This phone has a Web browser! (But because the network is Edge it’ll take a week to load, and won’t work on Java pages.)
  • This one has high speed Internet! (But you can’t tether it to your laptop without paying an extra $25 a month.)
  • This one plays all your video and music files, including streamed TV! (But the screen is so small it’s a pointless affair, and makes YouTube look like 1080p HD.)
  • This one uses Windows Mobile and is as robust as your PC! (Right, and requires a gillion button presses and digging into the Start menu to do anything, and is about as friendly as a starving pitbull.)

But to be fair, in a relatively short period of time—20 years—we’ve gone from the Wall Street-style brick that cost thousands, only made telephone calls and costs hundreds per month to use, to phones the size of a pack of playing cards with functionality that in many cases rivals a laptop. No matter how good the tech gets, though, it still seems we’re treading familiar and unsatisfying waters. One step forwards, two steps back.

In my case, I hit the wall last fall, after taking the plunge on a 2-year contract with a $500 Sprint Treo 700p the year before. At first I was delighted at the step up to a smartphone with high speed data. Then reality kicked in months later and I found myself devising a host of coping mechanisms for using the damn thing due to its massive amounts of failure: daily crashes (often while attempting to answer a call), unusable Web browser, unsupported MMS messages, OS bugs galore, and on and on. It sucked, and I was paying $118 a month for the displeasure of using it, with a year left in my contract.

Then came the iPhone. I sat on the sidelines for 6 months before finally succumbing to its charms (which aren’t without limit, admittedly), and so, like so many of you out there, I tried to get out of my Sprint contract. I’ll spare you the details and anguish. Suffice to say I had my Brokeback moment (Sprint, why can’t I quit you?) and getting out involved a hefty fee and plenty of sturm und drang. In the process of jump-starting my cell service, though, I learned quite a bit about what was available on the market and where the industry's trends are taking it. And after the dust settled, I’ve come out of the process looking at the world with a rather un-Grouse-y optimism.

Glass half-empty view: We are at the Episode IV: A New Hope stage of the cellphone game. With the advent of the iPhone, the competition got a much-needed kick in the ass and in the near future we’ll see everyone offering streamlined user interfaces and handsets, with powerful, useful, converged features that play nicely with others. The announcement of the open-source Android platform, promises from Verizon, and new pricing from Sprint show that the market is coming around to finally giving the consumer a shot at what they really want. It’s as if someone shouted “We’re all clear kid, not let’s blow this thing and go home!” and the Death Star is in cinders.

But taking this metaphor one step further implies that the Empire will not just disappear, but is simply waiting to strike back. So, will Android’s dozens of partners actually produce anything worthwhile or will the collective project fizzle in committee? Is Verizon really up for opening up their network, or will they simply offer up new ways to lock down the consumer once again? And no matter how nice unlimited sounds, is $99 a month really a price point the average Sprint customer can hack? Is that the best it can do to keep from continuing to hemorrhage customers?

Glass half-full view: We’re skipping the Empire’s strike back altogether. After iPhone 2.0 comes out, addressing all of version 1.0’s failings, the big boys are forced to compete with bigger and better, or wither away like Motorola. We’re all a bunch of happy Jedis, partying with Ewoks on our forest moon, rejoicing in victory and tech bliss.

While we wait to see if the iPhone genie flourishes or is put back in its bottle, I’ll offer a few cellphone-centric words-to-the-wise for the short term:

Don’t exchange short-term benefits for long-term well-being. And by that I mean think real hard about buying a phone or signing a service contract based on a rebate—rebates are the crack of the phone industry. For phone companies, the loss on a handset is more than made up for by the pricey long-term service plan you’re locked into in exchange. Besides, that $100 rebate usually equates to just a month or two of free service and may not compete with plan fees on another carrier anyway.

Every wireless carrier offers month-to-month service. Once your contract expires, don’t renew. Why risk having to pay a $200 fee for canceling a contract, when you can be a free agent—contracts are what keep phone companies from having to innovate after all.

Spend five minutes with a calculator and do the actual math. When I ditched my Sprint service and went for AT&T, I realized that even with the $200 fine for breaking my contract and the $400 cost of an iPhone, I’ll still save money over the year versus staying with Sprint (even with their new plan), and have virtually the same plan with an exponentially better phone.

And if you simply have to get out of a contract and find you will lose money overall, hit up celltradeusa.com or cellswapper.com. For a small fee they’ll try to match you up with someone who wants cellphone service and will take over your contract. Or you can simply find a place out in the sticks that out of your provider's coverage area and claim your employer is relocating you there, against your will. In your best puppy dog voice: “I'd love to stay with you, Verizon, but my company just won't let me!”

Hit the comments section below for your predictions and gripes, and further insights for getting what you want in the cellphone shell game.

6 Comments

Living in Europe, I had little idea of how bad the American cell system is. I have a phone that cost me around $50 (a junky phone but I don't mind; I had the option to get a nicer, more expensive one if I wanted,) on a prepaid system.

I came to the U.S. and tried to get a pre-paid phone for a few days. The guy at the counter wanted to sell me a years-long contract instead, and then tried to convince me to get a more expensive prepaid plan, saying it was 'better value' though the numbers on paper disagreed. Then he told me I'd have to buy a phone and they don't sell them for less than $100. say WHAT? In Sweden, this would cover the cost of my phone plus around 3 months of service.
I finally convinced him (that's how good a salesman he was, I had to spend 20 minutes _convincing_ him to give me a decent deal) to get me a cheaper phone. Then he sprang an 'activation fee' on me at the last moment (another thing that we don't have in Europe) that he hadn't mentioned before. Walking out the door, late for an appointment but semisatisfied that I had got what I wanted, I found that the phone's built-in voice recorder buttons weren't working. The phone had a voice recorder on it, which was disabled for no reason other than that Verizon didn't want me to have one. WHAT?

Two things here bothered me the most: the salesman wanted to rip me off, plus the phone company had crippled the phone by limiting the operating system! I understand the tactic of locking phones into networks for certain contracts, but I don't understand why they actively limit the features on the phone. The phone maker has put work into the hardware, and I've paid for it, but somewhere in the middle the network has removed features. The network should be just a network: a system that you connect your phone to in order to make calls and transfer data. not someone who controls the features of your phone itself.

I travel around a fair bit to countries other than the US. I tried to get a US phone that I could use in other places and that was a joke. I ended up buying an unlocked phone overseas, getting a SIM chip and airtime for less than what I would have paid just for the phone here!

I think it is time for us "peasants" to revolt and refuse to sign into contracts that we can't get out of without paying an arm and a leg.

Like the grouse says, when your contract runs out, don't sign up for another one. If a few million of us do that maybe we can get their attention!

I don't mind paying a fair price for what I use. But, I don't like paying for what I don't, like unused minutes.

Rise up, I say, rise up! We peasants are revolting.……ah, you know what I mean!

svseigel

from APO, AE

These include sightseeing, hedging the U.S. economy with foreign currency and fantastic cell phone service. I've lived 6 of the past 7 years in Korea and Germany, and I dread returning to the U.S. fiasco.

The U.S. government could quickly fix this if our lawmakers, executive and probably the judiciary weren't in bed with the telecom companies. Perhaps the people of the United States should collectively sue the government (AKA The People of the United States) to abolish all the games and allow a truly open market to operate.

As it stands now, Korea kicks Germany's cellphone butt, but even Germany is light years ahead of America. In Korea getting a phone takes 5 minutes, costs very little and works perfectly--prepaid/no contract phones are just as easy as contract. In Germany more people use contract phones, but whatever you use it takes about 20 minuts to buy the phone and install the sim card. If you buy a contract phone you must allow 40 more minutes to fill everything out in quintuplicate...and get stamps from the correct six offices--in the correct order (just kidding). But all kidding aside, not even death can get you out of a German contract, so prepaid is the only way for an expat to go. Whether one chooses a prepaid or a contract phone, everything works perfectly here too.

Now we come to America. First there is the fact that I actually come from America. Apparently this makes it very difficult to understand things--the opposite is true in every other facet of life! There are the myriad of choices-that-are-not-choices. Finally we have the crappy phones and spotty coverage areas (perhaps these should be remarketted as "coverage fractal powders"). In short everything cell is broken in the United States.

As I was scheduled to return to another overseas assignment, I chose a no contract phone. The company billed me monthly anyway. When I went to the shop to try to resolve this they couldn't help me because I didn't have an account. The same was true of the service (disservice) center. My non-account was eventaully turned over for collection and my credit report is annotated! Here's the kicker, the credit bureaus won't remove the errors until they contact whoever put them there. Well at least I had a phone, right? Actually it was so rare that I found it worthy of a stop along the road to make or receive a call--otherwise my signal would drop out. After three months of this I succumbed and purchased a special cell phone car amplifier (a la 1990s brick-phone technology) with which I was able to actually call for roadside assistance.

Finally I came to the point that I no longer needed the phone. In Korea or Germany I easily sell back (or at least recycle) used phones. I normally buy refurbished phones. That option never existed in America where I was told to "just throw it away." When I asked about proper battery disposal they told me to just toss it--NICE! Fortunately I was able to find someone like me who needed a phone for a short time--I gave it to him.

I have to say that by omitting any mention of the FCC's 700 MHz auction, and how Google ensured open access for the C band by petitioning for it through this auction venue, the writer missed a pretty major event in cellular market history. Verizon would never have been strongarmed into open access if it wasn't for Google and Google would never have had its chance without the auction. Plus, the strength of this frequency, which has been turned over to wireless communications, means that we will likely see fewer cell phone towers to support it. isn't that impressive too?

I travel in Africa a lot. My last trip to Ghana, there were a couple guys standing there after going through customs handing out FREE sim chips for their wireless service. Each chip had a couple minutes on it and you can buy more minutes EVERYWHERE. And the cost of the minutes is minimal.

Ghana is no exception. The most I have ever paid for a local cell network sim chip is the equivalent of $2 US. Little road side stands sell chips and minutes throughout Africa, even in small little towns.

Even Africa is ahead of the US in its wireless phone service. I have written to my congressman on this issue more than once. I would encourage you to do the same. We are being royally ripped off here in the US as cell phone technology is not expensive, but we are being charged as if it were.

There’s no doubt that everywhere there’s always a new features of cell phone. So, I guess communication with other places, even when traveling isn’t hard to do since we always have medium of communication. However, concerning to traveling around the world, These days, if you're taking a flight for a trip any longer than overnight, it will cost a lot of money to check a bag, and if you want something to drink on the airplane or maybe a snack – get a second mortgage. Travel fees get worse every year. They'll even charge you for the sordid and unsanitary pillow and blanket. Travel fees get worse every year. It's gotten to the point where you need debt consolidation from travel fees for a trip over the weekend. To read more visit http://personalmoneystore.com/moneyblog/2009/04/20/bag-travel/.


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