Tuesday, July 8, 2008

3G iPhone Data Plan - A Good Deal

Okay, I'll admit I am a bit of a fanboy when it comes to Apple. I cut my teeth on a 9" Macintosh back in 1984 and before that was learning BASIC on an Apple II. I awaited the original iPhone with bated breath and as envelope pushing, game changing as a device it was I didn't purchase one. Why? I was waiting for the 3G version of the phone. EDGE is a perfectly fine network but I was using a phone that was currently 3G and I didn't want to take a step backwards.

When the original iPhone data package was introduced I thought it was a very good deal. Unlimited data usage (including email and surfing) and 200 text messages for $20 was a better value than ATT was offering for their other PDAs or Blackberrys. It was on par with what they offered for the non smartphones in their line-up.

Now with the impending release of the 3G iPhone people are questioning and complaining about the new 3G data plan requirements. Yes, they say; the cost of the iPhone is more affordable at $199 for the 8GB version, but over the length of the contract the new data plan will add an extra $15 a month for the same value original iPhone users currently have. That's an extra $360 over the life of the 2 year agreement.

While that is true, it is important to understand why the original iPhone plan was so undervalued for what it offered. Apple and ATT's agreement for the original iPhone was based on a Revenue Sharing model instead of the more traditional cell phone model of subsidization. This meant that Apple received a percentage of every iPhone sold and a percentage of every contract signed. Because of this Apple was able to set the pricing for the data plan. They designed the current plan and priced it at $20 a month.

With the release of the 3G iPhone the agreement was changed. The revenue sharing model was gone and in it's place was the more traditional cell phone model. This was done for a variety of reasons on both Apple's and ATT's part. More competitive pricing and better control and security were two big ones. Apple needed to hit there self imposed 10 million iPhones sold prediction and ATT wanted prevent reselling the device to ensure a steady revenue stream.

The new 3G data plan is consistent with ATT data plans for smartphone devices.
There is no bilking of the consumer. No bait and switch. In fact, it is the same plan that is required for Blackberry's and Treo's. $30 a month for unlimited data is what Blackberry owners pay. It's what Treo owners pay. It's what Q owners pay. And it is what 3G iPhone owners will pay.

If the user want to add messaging the cost increases $5 for 200 messages, $10 for 1500 or $20 for unlimited messages. Also remember that Visual Voicemail, an iPhone exclusive, is included in the same $30 per month.

The 3G iPhone is the first 3G smartphone available in the US and it is being priced alongside other EDGE devices, both in cost of phone and in cost per month. I don't think that is something to complain about.

In fact, I think it's a good deal.

Monday, July 7, 2008

A new home for blogging

After using Facebook, MySpace and iWeb for blogging for a few years I've decided to make life easier for myself. I've started this blogspot account and it will be my "official" blogging home. No more triple posting blogs!!