It’s no secret that I’m significantly against the junk that a lot of the carriers setting up to ultimately bleed consumers dry. The mobile space evolved rapidly and, like the banking system, carriers are seeing a great opportunity to sink their teeth into some of that sweet mobile meat. They’re actively working (behind the scenes for now) to create a situation that is incredibly anti-competitive and anti-consumer.
As the Internet evolves and becomes increasingly more mobile, we will undoubtedly begin to see carriers introduce “competitive” mobile internet plans, “tiered” pricing, “premium” services and/or access to certain services, etc. We aren’t seeing that right now because most people access their internet through terrestrial (land-based) wiring. Cable modems, DSL, and fiber are still the de facto standard, but imagine what the Internet landscape will look like next year. How about three years from now? Yeah. Mobile carriers want in on that, and they’ll lie and cheat their way into that system to do so.
So how does the consumer protect him or herself against this impending battle?
My solution, thus far, has been the trifecta of Google Voice, Apple, and another unlikely hero: TracFone
To understand my thought process on this, we’re going to have to take a little trip in the Wayback Machine. Here we go.
Not so very long ago, Apple unveiled, with the release of the iPhone 4, a technology (or protocol) it calls “FaceTime.” I predicted a little while ago that Apple will be using this technology as a way to skirt the carriers and get all their iOS devices to level where they are capable of “making a call” to other iOS devices. With a huge number of people around the world using the iPhone, iPod Touch, and iPad on a daily basis, it wouldn’t be far fetched to think that this can become a way for people to call each other and talk face to face (in case you haven’t noticed, we live in the future). I also predicted that they will be leveraging a rumored update to MobileMe that will essentially be the backbone of this new “service,” routing their FaceTime calls, allowing people to update their statuses so people know when they’re available or busy, etc. Now, the source link is outdated (I chalk that up to iPad 2 media insanity). We’re nearing the end of April and we haven’t heard so much as a peep from Apple. I still stand behind this idea, however.
People have asked me (as they always do), if I’m going to buy the next iPhone. This time, I don’t think so. I don’t think that the iPhone has the same value it did when it was first released, mostly because it comes with a pair of leg irons in the for of a service contract from either AT&T or Verizon. I wouldn’t touch either of those plans with a ten foot pole anymore. I believe that the iPod Touch is where it’s at right now. It does apps, does FaceTime, and any sort of Internet you can throw at it. It doesn’t come with a service contract, it’s thinner, lighter, and comes with higher storage capacity (not that you’ll need it with all this cloud stuff going on, but it’s good to have in case you would like to, oh, I don’t know, watch Star Wars.) If you look at my previous guide to get started with Google Voice, we can take it a step further.
Start there, contact me with any questions, and we’ll scaffold further over the course of the next week. For everyone with every possible phone need, there’s a plan that will work for a fraction of the cost you’re paying now, guaranteed.
One of my recent blog posts detailed the transition from a carrier-centric model of communicating to a user-centric model. This transition has been, for many people, difficult to understand and/or accomplish due to the ingrained carrier model that so many people are programmed to know. There are so many other ways to communicate, and people who embrace rapidly evolving technology will find themselves on the forefront of a new paradigm of that communication. It’s ridiculous that, in our world of super fast mobile broadband, we still pay carriers ridiculous fees for “minutes” that many of us never use.
The thing is, carriers know this. Carriers know that the future of communication looks more like what I’m doing on my own right now, and not like what they’re trying to push on everyone in American with their advertising wars. Sure, iPhones are great, but when your carrier is cutting your neck and hanging you upside-down over a bucket just so you can use the latest and greatest phone, you’ve got a problem. Phones should not have a “privilege tax” associated with them just because they can run apps.
In a recent discussion with a family member, the topic of “outrageous” pricing for data plans was mentioned. The family member in question pays around $40-50 monthly for a regional voice plan that includes far more minutes than he will ever use (obviously long-distance calls are extra). Up until recently, he did not have any means of communicating via SMS, and added on a $5/month messaging package. Recently, he wanted to upgrade his phone to something running the Android operating system so that he could browse the internet from his phone. He was taken aback, however, when the carrier representative told him that this phone required a $30/month data package. He was upset, but for the wrong reason.
“Can you believe it?” he asked me, “They wanted to charge me $30 a month for data! That’s crazy!”
“No,” I told him, “what’s crazy is that you’re paying $40-$50 each month for voice. I’m talking to you right now on a $25/month data plan. Talking.”
This took a little while to sink in. He didn’t quite get what I was saying, so I explained it to him.
Carriers charge their customers for voice airtime “minutes,” which are essentially packets of data that are prioritized over all other forms of communication in their cell towers. Each minute of talk time is like a reservation of the cell tower’s resources, requiring that the cell tower allocates a certain amount of its processing power and bandwidth to handle that single call. SMS messages consume such a tiny, infinitesimally small amount of that bandwidth that they have no impact whatsoever on the network. Other data (e.g. the Internet) is doled out as the cell tower allocates it. Carriers regularly cite all sorts of statistics regarding their mobile data usage, saying that it’s been increasing exponentially, uses more network backhaul than ever before and yadda yadda yadda. The true killer here is voice, and the shift to pure data will happen right under your nose. That being said, carriers will try to mask it all they can in order to charge you an arm and a leg for something that is not inherently different from anything else they offer.
4G, which is this buzzword that all sorts of carriers are throwing around now (some of whom don’t even have a true 4G network), is a data-only service right now. Data. 4G technology gives users more than enough bandwidth to be able to talk and browse the internet simultaneously. Heck, 4G networks have enough power to allow people to simultaneously video chat and and browse the internet simultaneously. I know, I’ve tried it, and they’re fast. A carrier could easily offer just a simple, flat-rate 4G internet plan for…say $40/month. For that, a person could talk, “text,” and browse the internet essentially without being limited by arbitrary caps to minutes, messages, or data consumption. Heck, we could even say $60/month could get you those privileges. “Wow, that’s cheap!” you might say. That’s right, it is, because those plans aren’t accompanied by the all-too-familiar “voice minutes” that we’re used to seeing now. All our voice is data right now, anyway, but carriers simply charge you differently for it.
Now, here’s the kicker. The carriers want to keep swindling you out of your money. They want to keep pulling every last dime they can out of you, and the way things are looking for mobile net neutrality, it looks like they’ll be able to. Recent laws that have been passed by Congress limit the amount of power the FCC has over mobile carriers, which essential allows them to charge you whatever they want for the “services” they offer. With the possible consolidation of T-Mobile under AT&T later this year (or early next year), this puts the American mobile consumer in dangerous territory. Verizon and AT&T will rule the air, and Sprint will carve out a niche (hopefully by offering real value in their services).
Ultimately, the mobile giants will find ways to squeeze extra money out of America by differentiating “voice” and “data.” This is insane, and you shouldn’t stand for it.
My next article will outline a plan to circumvent the impending storm, essentially to sandbag against a possible assault agains the mobile consumer space. This sounds crazy, I know, but it’s already happening. 4G will be the de facto standard very soon, and 5G will start to peek its head out from the horizon. What then? If Verizon and AT&T are doing this now, what will they do in five years? Ten? The future looks bleak, but stay tuned for ways to skirt the whole thing and save a pretty penny in the process.