iphone and 2 yeat contracts Fw: TRACNotes Volume 5 Issue 27

[David Farber <dave () farber net>]

Begin forwarded message:

From: John Shoch <shoch () alloyventures com>
Date: July 6, 2007 7:37:06 PM EDT
To: dave () farber net, ip () v2 listbox com
Cc: John Shoch <shoch () alloyventures com>
Subject: RE: [IP] Re: iphone and 2 yeat contracts Fw: TRACNotes  
Volume 5 Issue 27

Dave,

I must confess that I am very puzzled by all these threads on the  
iPhone/AT&T.
Concerns about the price, the service, the closed environment, etc.
Where does all this come from?

If you don't like the price, DON'T BUY THE PHONE.
If you don't like the features, DON'T BUY THE PHONE.
If you don't like the battery replacement expense, DON'T BUY THE PHONE.
If you don't like the requirement to use AT&T's service, DON'T BUY  
THE PHONE.
If you think EDGE is too slow, DON'T BUY THE PHONE.
If you don't want a 2 year deal, DON'T BUY THE PHONE.
If you are not prepared to honor whatever the license is, DON'T BUY  
THE PHONE.
If you don't want Apple and AT&T shareholders to make lots of money  
off of you, DON'T BUY THE PHONE.

Every consumer has an easy way to punish Apple and AT&T for any  
perceived sin -- DON'T BUY THE PHONE.
Nokia/Samsung and Verizon/T-Mobile are willing and eager to help you  
vent your frustration.

On the other hand, based on the number of customers who think the  
product IS worth the price, my only regret is that I did not buy  
Apple's stock....

John Shoch
Alloy Ventures

-----Original Message-----
From: David Farber [mailto:dave () farber net]
Sent: Friday, July 06, 2007 3:43 PM
To: ip () v2 listbox com
Subject: [IP] Re: iphone and 2 yeat contracts Fw: TRACNotes Volume 5
Issue 27




Begin forwarded message:

From: Sam Simon <sam () simon net>
Date: July 6, 2007 5:46:53 PM EDT
To: David Farber <dave () farber net>
Subject: iphone and 2 yeat contracts Fw: TRACNotes Volume 5 Issue 27
Reply-To: sam () simon net

Dave

For IP if you wish. The ATT demand for a two year contract for
iiPhone contracts puts the lie to the oft repeated justification for
such fees -- that the carrier is subsidizing the cost of the phone.

I believe consumers are paying full freight for iPhones. Seems the
two year contract and early termination are just greed.

Sam
Samuel A. Simon
Sent from My Blackberry
202-263-2901

-----Original Message-----
From: "TRAC" <trac () trac org>

Date: Fri, 06 Jul 2007 20:16:34
To:"Sam Simon" <sam () simon net>
Subject: TRACNotes Volume 5 Issue 27


TRACNotes Vol. 5 #27
   TRACNotes: News from TRAC  <https://img.getactivehub.com/an2/
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Volume 5 Issue 27 - July 6, 2007


IN THIS ISSUE


* WIRELESS WATCH: To iPhone or Not to iPhone,
That is the Question
* WIRELESS WATCH: Amp&rsquo;d Mobile In Trouble,
Files for Bankruptcy
* BUCKS WATCH: TRAC State-by-State Local Phone
Plan Comparison: Tennessee





To iPhone or Not to iPhone, That is the Question - The biggest event
to hit the consumer telecommunications industry in quite some time
occurred last week as the much-hyped Apple iPhone was released to the
general public. Listening to the often-breathless reviews from
industry pundits, one could not be faulted for thinking that the
iPhone can cook and clean house in addition to its myriad other
features. Here at TRAC, however, we’ve seen numerous telecom gizmos
come and go and we’ve found that most consumers want a simple device
that does what they want and doesn’t cost an arm and a leg. So how
does the iPhone measure up and (more importantly) what are the
“gotcha’s” that consumer should keep in mind before shelling out $499-
$599 for the iPhone? Here are the big factors to keep in mind:

* The iPhone is exclusively available from AT&T (a.k.a. Cingular,
a.k.a. AT&T Wireless) and will only be available to AT&T subscribers
until at least 2009. This means that subscribers who want an iPhone
but are currently under contract with other carriers will have to
either pay for two wireless plans, break their existing service
contract (and pay a hefty early termination fee), or wait for their
contract to expire.


* iPhone service is significantly more expensive than conventional
cell phone service. The cheapest iPhone service plan costs $59.98 per
month for 450 minutes, unlimited data, visual voicemail, 200 SMS text
messages, and 5,000 night and weekend minutes. By comparison, AT&T’s
conventional “Nation 450 with Rollover” plan costs $39.99 per month
for 450 anytime minutes and 5,000 night and weekend minutes.


* iPhone service requires a 2-year service contract. Early
termination of the contract will cost $175. One has to wonder why
there is an early termination fee at all. The normal excuse offered
by carriers is that they are subsidizing the cost the phone. However,
it is hard to make this case with regards to the iPhone. According to
press reports, Apple is turning a profit of approximately $300 per
phone. That may be one reason Apple’s stock is soaring.


* When not operating over a Wi-Fi connection, the iPhone’s data
system currently operates over AT&T’s EDGE network instead of the
company’s 3G network. Some analysts have called the connection
“excruciatingly slow,” taking more than 100 seconds to download the
Yahoo! home page. The highest data speeds consumers should expect are
around 200-220 kbps, which is about 1/3 the speed of a typical DSL
connection. In other words, don’t expect the iPhone to break any
speed records downloading online content.


* AT&T’s customer service ratings historically have not been the
best. While the company has made strides as reflected in recent
rankings from J.D. Power and others, they continue to lag behind
industry leaders Verizon Wireless and T-Mobile. While Apple and AT&T
have gone to great lengths to make setting up the iPhone as painless
as possible, consumers should still consider the likelihood that they
will have to interact with AT&T customer service at some point.


* Battery replacement will cost between $80 and $100. The iPhone
battery is not easily replaceable, so the only option when faced with
a dead battery is to send the iPhone back to Apple for replacement,
which costs around $80.00. For an additional $20 they will send you a
“loaner” while your iPhone is “in the shop.”

The final word: Customers who absolutely must have the iPhone will
likely not be dissuaded from buying one by this article. Consumers
who have a real need (and the pocketbook to pay for) unlimited data
usage may find the iPhone quite useful. In addition, customers who
are considering spending $249-$349 on a video iPod and who want a new
cell phone as well could find that the iPhone’s cost is more
digestable. For the rest of our readers, however, it’s hard to
recommend the iPhone at this time. The high price tag for the device
itself and the service is unlikely to come down until other wireless
carriers begin to offer iPhone service. In addition, later versions
of the iPhone are likely to include even more features and the
capability to operate of faster 3G networks. For all these reasons,
most consumers should probably hold off on rushing out to buy the
iPhone right away.


Amp’d Mobile In Trouble, Files for Bankruptcy - Last month Amp’d
Mobile, the troubled wireless carrier, filed for Chapter 11
bankruptcy protection. This comes on the heels of media reports that
Amp’d has been unable to collect on bills owed by approximately half
of the carrier’s estimated 175,000 subscribers. Amp’d is one of the
approximately 40 mobile virtual network operators (MVNOs) currently
operating in the United States. MVNO’s do not operate their own
wireless networks as carriers like Verizon Wireless, AT&T, Sprint-
Nextel do. Instead, they lease access to one of the existing networks
and typically market themselves to niche market segments. Amp’d, for
example, leases access to Verizon Wireless’ network and focuses on
providing data content to the teen and twenty-something market. Amp’d
offers several levels of service, including traditional post-paid,
pre-paid, and hybrid plans. The company launched in 2005 amid news
that it had raised more than $350 million in venture capital.
Subscribers to Amp’d service should contact the company to inquire
about the future of their service. Verizon Wireless had threatened to
cut off service to the company’s subscribers, but relented when a
deal was struck earlier this week. Needless to say, the future of
Amp’d is very much in doubt at this time. We would recommend that
consumers looking for a new wireless carrier look elsewhere, at least
until the company’s financial situation becomes clearer. For more
information about Amp’d’s bankruptcy filing, click here.



TRAC State-by-State Local Phone Plan Comparison: Tennessee - (Note:
This is the forty-second in a series of articles comparing local
telephone rates in each of the 50 states.) Residents of the Volunteer
State may find that they pay significantly different rates for basic
local telephone service depending on the area of the state they live
in. TRAC’s survey of local phone rates in Tennessee found that
residents can spend anywhere from a low of $28.13 to as much as
$42.01 per month for similar levels of service depending their
address. The largest local phone carrier in Tennessee is AT&T
(formerly BellSouth), though there are a number of small rural
carriers, competitive local exchange carriers, cable, and third-party
VoIP carriers vying for consumers in the state. Subscribers to AT&T’s
“Basic Residential Line” plan can pay as little as $28.13 in one part
of the state for a package including unlimited local calling, Caller
ID and call waiting, while subscribers in another part of the state
may pay as much as $30.11 for the same level of service. Subscribers
to one of the rural carriers typically pay between $25.40 and $37.95
per month for basic local service with Caller ID and call waiting.
Among the competitive local exchange carriers serving the state,
Navigator Telecommunications offers the most competitive rate at an
estimated $28.45 per month for their “Basic Plus” plan. Comcast, the
largest cable provider in the state, offers their “Unlimited” local
and long distance bundled plan, but charges more for it ($44.95 per
month) when subscribers do not also sign up for Comcast cable TV or
Internet service. Finally, third-party VoIP carriers such as Vonage
and Packet8 offered the cheapest rates in our survey ($25 or less for
unlimited local and long distance calling), but they are only
available to customers with existing broadband connections. To view
the full chart, click here.
A note on methodology: TRAC’s local phone plan survey takes in to
account the prices for monthly service, the federal subscriber line
charge, and the two most popular calling options – Caller ID and call
waiting. Note that some local phone service plans are only offered as
a bundle with long distance service, which skews the total cost
comparison somewhat. TRAC’s survey covered plans being offered in a
variety of local service areas. Plans surveyed may not be available
in every area of the state

INTERESTING LINKS
----------------

FCC Main Page: http://www.fcc.gov
FCC Complaint Form - http://svartifoss2.fcc.gov/cib/fcc475.cfm
List of State Regulatory Commissions: http://www.naruc.org/
displaycommon.cfm?an=15
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