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Wireless Pricing Clues Us Into The Downfall Of Wintel And The Rise Of Google-tel?

Reggie Middleton's picture




 

TMO-Verizon-Head-to-Head Legal-approved FINAL-small

I received several letters in response to my Deadbeat Carrier Series. Here are a few, along with my responses to them.

Reggie, I found what I think are some flaws in your carrier monthly cost numbers in your "Deadbeat Carriers Compete" blog posting. First the biggest flaw is that the $70 T-Mobile plan does NOT include unlimited hot spot service. It only includes 500mb of hot spot service. You can read it on this link from T-Mobile.com. http://www.t-mobile.com/shop/plans/individual-plans.aspx I couldn't find the cost of 10gb of data including hot spot service but obviously it's going to be more than $70/month.

This is only a problem if you do not embrace Android as your default OS, and Android 4.2.2 is quite capable of doing so for over 85% of computer users. See the video below...

Second, where are you getting the costs for AT&T? I went to their website and they don't have minute plans that go up to 6000 minutes. Their individual plans are 450 minutes for $40, 900 minutes for $60 and unlimited minutes for $70 then you can add $20 for unlimited messaging. The data plans on the individual plans only go up to $50 for 5gb which includes hot spot service. They also have AT&T Mobile Share with unlimited talk and text plans which reduces the cost greatly from what you listed. Their 10gb mobile share plan costs $120/month and a single smartphone with that plan costs $30/month and you can use the hot spot service at that plan for no additional cost (I confirmed this with AT&T) so the total is $150/month (not $200 as you indicated).

AT&T has modified their pricing since I created the model, but the pricing has changed, not necessarily gotten cheaper. They effectively charge $10 per gigabyte for data, $70 for unlimited voice and $20 for unlimited texts. So 10 GB of data would be $100, and voice and text would be $90 combined - adding up to $190 before taxes, surcharges and fees which would add another nearly 20% on the price or roughly $220 total - as compared with T-Mobile whose package would be about $76 - all in (only sales tax is added in with pre-paid plans)! If one were to compare T-Mobile to the Mobile Share plan, there's still a big discrepancy for the reader forgot to include surcharges, fees and taxes - again another nearly 20% tacked on, so we're talking $180 per month, and that's just with 10 gigs of data use. If one were to use 40 gigs like me, then you'd add another $36 per month on that - or roughly $216 which is pretty much where we started in the first place.

Lastly, where are you getting the costs for Verizon? Again, they appear to be way off. Verizon's share everything plan with 10gb of data costs $100/month and then you add $40/month for single smartphone (with unlimited voice minutes and messages) and you can use the hot spot service at that plan for no additional cost so the total cost is $140/month (not $240/month as you indicated). I'm looking forward to your response. Thanks.

Again, the author is comparing family share plans to the single plan that was used in the model. Even so, Verizon pricing is far from a bargain. Let's look closely at the numbers he provided. Verizon is charging the same as AT&T, $10 per gig, but charging more for the handset service @ $40. If one where to use 40 gigs per month, that would be $400 per month plus $40 for the handset plus the nearly 20% in taxes, fees and surcharges - all told over $500 per month, compared to the flat $76 from T-Mobile. Even if you used half the data, your looking at about $280.

My next gift is your ability to generate your own chart with your own wasted wireless carrier dollar expenditures. Check it out..

As I said, deadbeat carriers. Here's some more mails...

Reggie, Good postings. One of the reasons why I'm switching off from AT&T very shortly and going to T-Mobile. They just have the same offerings for a LOT less. Isn't that what things were all about in the beginning before AT&T and Verizon slowly increased their prices and plans? On top of that one of the T-Mobile MVNO's, Solavei, has been on the market for just under a year now I believe and Solavei offers things for $49 "ünlimited." They're main offering is working it into a MLM/referral-based program where a few referrals can chop the bill to 0 or make a few bucks. Worst case it's good for a while before that program crashes possibly, then just jump back to T-Mobile (or other pre-paid style plans that offer nearly the same data and specs for less) Keep up the good work.

And here's another one...

Reggie,

To point one in the direction of "future" in the US, it probably suffices to point one in the direction of some carriers in Europe. Particularly these from Estonia. Sample plans here: https://www.emt.ee/en/internet-telefonishttps://www.elisa.ee/et/Eraklient/mint-mobiilis/562/MiNT-mobiilipaketid (use google translate), https://pood.tele2.ee/et/serviceplans/572 (use google translate).
Or some examples: 
    1. 10€/month for unlimited data at 3.5 Mbps (Elisa)
    2. 5€/month for unlimited data at 1 Mbps (Elisa)
    3. 11.95€/month for 30 GB of data at 6 Mbps (Tele2)
    4. My current plan from EMT: €38/month for a family plan with 4 phones, 400 minutes (unlimited calling between the family phones), text, unlimited internet on 2 of the phones.
Additionally the country (Estonia) is pretty much 100% covered - you get high-speed internet in the thickest of forests from all of the carriers.
When comparing these plans with anything considered "normal" in the US ($300-$400 for a similar 4-person family plan from US Cellular with white areas in every valley between moderate hills), it's clear that there's a very, very long way for the US providers yet to go. It's simply amazing how much US customers are paying for the little amount of services they are actually getting!
All the best,

So, what does this all mean? Google's Android will become much more pervasive as Web access becomes cheaper. It also means that the Wintel duopoly is primed to potentially be toppled. Take note that Intel is now supporting Android and system makers are adopting it. Android is rich enough to replace windows for many, and believe it or not in this short period of it's exisitence I believe Android has surpassed Windows in active users. What happens when the power of Intel Core I7 chips are pushing Android? I'm sure Microsoft doesn't want to know!

 

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Mon, 06/10/2013 - 19:34 | 3644129 Zero Govt
Zero Govt's picture

"..The Downfall Of Wintel And The Rise Of Google-tel?"

Shiver me timbers, what a shocker, yet another Reggie the Rooster article crowing, squawking and clucking from the rooftops about Goofball (again)

Everything's coming up roses in Goofyville... 

...er, except for the numbers, maths and profits which are all swimming in red ink losses, bleeding like a diseased zombie dinosaur whose ego is out of control there isn't a market this cancerous Corpse doesn't think it's an 'expert' in

But don't let that worry you Reggie, you're only an accountant, man of logic (cough) and total loser yourself ...or worry any village idiots (Goofy shareholders) as Steve Schneider's ego hunts (runs amock?) markets far and wide chasing red ink losses like a banker gambling bum addicted to, well, losing every hand he can lay his delusional paws on

all signed off by an accountant here, Enron-like, who's clearly on a fat GOOnbubble retainer and is easily the funniest clown Farmer Tyler has ever brought to ZH ....what a laugh/farce ...blow this turkeys f'n brains out would ya TD 

 

Mon, 06/10/2013 - 18:57 | 3644013 ebworthen
ebworthen's picture

Hell,

WalMart is offering a two phone family plan that uses T-Mobile towers for $75 a month unlimited talk/text/data.

I'm looking to buy a mid-level Android model that uses Ice Cream Sandwich; $200 and no contract.

Why the hell would I pay for an iPhone, or use Verizon?

p.s. - Intel chips suck a lot of juice and run hot.  If they aren't moving as fast as they can into more efficient mobile processors they will be downsizing very soon.

p.s.II - Microsoft is dropping the ball with XBOX ONE (the upcoming new XBOX).  Kinect has to be on all the time, digital rights on games with an umbilical cord to the cloud.  OOPS!!!

Mon, 06/10/2013 - 19:42 | 3644178 Zero Govt
Zero Govt's picture

you'd buy an iPhone to be seperated from all the cheap trash on Droid 

...if you had some class

...maybe at Christmas Santa will bring you some, just sayin !

Wed, 06/12/2013 - 13:06 | 3650583 jomama
jomama's picture

the fuck are you blathering about.  Android is far more versatile than crapple phones.

but if you insist on training wheels on your device, suit yourself

Mon, 06/10/2013 - 12:30 | 3642483 jimijon
jimijon's picture

Today Apple announces. Yes, I am an iOS fan and yes I have written Android apps. Just love working with iOS so much more.

Mon, 06/10/2013 - 12:40 | 3642510 TPTB_r_TBTF
TPTB_r_TBTF's picture

iOS on iToys for iDiots

Mon, 06/10/2013 - 19:45 | 3644165 Zero Govt
Zero Govt's picture

the iDiots are all on Microshit and drowning in dumping red ink losses iDroid, a give-away-freebie in Wallmart generic packs of discount cornflakes from Goofyville

profits are sanity, Apple are so sane they make more profits than MShit and GOOFcrap and the entire PC industry combined

not hard to beat Goofville profits, they don't make any, Schneider is f'n delusional beyond belief with his diseased diva rampage across market after market 

Mon, 06/10/2013 - 12:02 | 3642354 Ying-Yang
Ying-Yang's picture

Microsoft, Apple, Google and Rim will slug it out but Aliyun, Firefox OS, Sailfish Os, Tizen and Ubuntu Touch OS may surprize the big boys.

Mon, 06/10/2013 - 11:48 | 3642299 duo
duo's picture

Android devices are always sending GPS, always pinging wireless networks, and of course, sending whatever data the CIA wants about you.  No thanks.

Even with task killers, my tablet's applicatons keep starting up on their own.  The battery won't last a day on my tablet in standby (spy mode?) and if completely off still drains the battery in 3-4 days.  They expect us to use Android for online banking, or run tax software?

Mon, 06/10/2013 - 11:26 | 3642229 williambanzai7
williambanzai7's picture

I wouldn't put a dime of my money in any of these fascist signaling operations and least of all GooGstapho. 

Hauptscharfuhrer Eric Schmidt: I don't know Bilderberg or Big Data is so it's OK to buy my stock and my phones.

And yes,  I stopped carrying a mobile phone.

Mon, 06/10/2013 - 13:16 | 3642674 monad
monad's picture

low tech rules

Mon, 06/10/2013 - 19:53 | 3644214 Zero Govt
Zero Govt's picture

low tek rules with Reggie Rooster too....no calculator to do maths on Goofville's mounting losses in market after market while its Ad Revenue tanks and it subsidises it with previous years profits to prop it up

...not to mention the thousands of housewives it calls on to click-thru fraud and make advertisers think they're getting custom from Google Ads

...nope, Reggie uses his bank balance of Goofville fat checks to measure the 'success' of his articles ...why listen to bloggers who can see thru this f'n turkey when you've sold your soul to peanuts off Steve Schneiders ever more delusional Exec desk

 

Mon, 06/10/2013 - 13:03 | 3642606 bank guy in Brussels
bank guy in Brussels's picture

Reggie have a little respect

Right in the middle of this gigantic public international scandal involving the criminal murderers at Google Inc with the NSA

Reggie Middleton has to run yet another article touting those gangsters

Couldn't you wait a while ?

Or was it a condition of the latest fat bribe cheque you got from the Google Inc marketing department, that they wanted you to do some propaganda for them right now ?

Mon, 06/10/2013 - 14:14 | 3642909 machineh
machineh's picture

Since no one else has said it, let me do the honors:

FUCK GOOGLE, AND THE DUPES WHO SHILL FOR THEM.

Mon, 06/10/2013 - 12:42 | 3642518 DeadFred
DeadFred's picture

Reggie may have sound financial advice though. Google comes with the full faith and backing of the NSA. How can anyone compete with someone who can get printouts of every confidential memo you send via your internal server? If you sell your soul to the dark side you could make some fiat off the GOOGLE

Mon, 06/10/2013 - 12:22 | 3642403 Element
Element's picture

Spot on, I do have a mobile with almost every 'feature' (as opposed to a bug) disabled, but it's also turned off almost the entire time unless I actually want to contact someone else. There's no reason to have it on all the time. Most people I don't even want to talk to, let alone encourage them to call me again. And I can check messages like I always have in the past, so what do I care? Frankly, I have a hard time thinking of a single instance where someone needs to immediately speak to me for any reasonable purpose. Maybe one in a thousand calls is from someone who would really like to talk to me immediately, but can't reach me. And know what? I'm more than ok with that almost every time it happens. Truth is, around 99% of mobile communications are virtually entirely non-essential time-wasting drivel. Calls made simply because people can make them easily, not because they should, or actually needed to. It's a bad habit, and they should quit.

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