Customers Swindled By Carriers For Too Long – T-Mobile says No More Contracts

By no means is this recent news, but it IS something consumers need to know about. When you sign up for a 2-year contract with any carrier, you are NOT getting a huge discount on that new phone. No matter what, you are eventually paying the full cost of that phone. The most common way carriers make up the difference is by bundling your monthly bill with a hidden phone pay-back fee. The problem is, because the monthly bill is bundled, you keep paying for the phone even after you’ve paid off the difference. So that money comes right out of your pocket and into theirs for no real apparent reason. Disgusted yet? Customers were getting smart about this vile scheme and T-Mobile just became the “good guy” whilst the others now look like vampires caught with their fangs in your neck.

AT&T, Verizon joint conference

AT&T, Verizon joint conference

How are T-Mobile’s UnCarrier plans saving our souls?

Primarily, T-Mobile’s new UnCarrier plans are cheaper. Let’s compare these similar plans:

AT&T

  • Unlimited talk & text, 3GB of data for $100 a month with a 2-year contract when you buy a new, discounted phone (hidden fees in monthly bill make up difference for discount). $35 activation fee with every new contract.

Verizon

  • Unlimited talk & text, 2GB of data for $100/month with a 2-year contract when you buy a new, discounted phone (hidden fees in monthly bill make up difference for discount). $36 activation fee with every new contract.

T-Mobile

  • Unlimited talk & text, 2.5GB of data for $60/month, no contract. For new phone, either pay full cost upfront or pay monthly installments ($20 minimum) till phone’s full cost is paid off. No activation fee.

So, even when you’re knowingly paying the full cost of your phone on a monthly basis, T-Mobile is still cheaper at $80/month than AT&T and Verizon’s $100/month for similar service.

Second, we are freed from the 2-year contract. However, the 2-year contract served little more than a way for carriers to ensure you pay the full cost of the phone you purchased. The “penalty fee” for breaking an AT&T or Verizon contract is actually the remaining amount you owe for your phone. It’s a similar situation with T-Mobile. If you chose to leave T-Mobile before your phone is paid off, you’ll be charged for the remaining amount you owe. Plain and simple. The major difference here is transparency and a more honest approach towards customers.

If AT&T and Verizon had simply told us they can’t make money by discounting phones in the first place, and that we would have to pay the phone’s full price regardless, we might have understood. It’s like a kid whose lie gets discovered and realizes telling the truth would’ve spared him deeper trouble.

The Verge got hold of rumors that AT&T is following suit on June 15th. But things aren’t looking hopeful for Verizon enthusiasts:

“During an interview at this year’s Consumer Electronics Show in Las Vegas, Verizon Communications CEO Lowell McAdam…questioned whether U.S. customers are ready for that type of shift because they have been conditioned to getting lower-cost phones for so long.”*

The BS, it burns! What Count Mr. McAdam actually means is:

“U.S customers have been misled to believe they were purchasing lower-cost phones for so long when they’ve been paying full price without even knowing, and we’re not sure people are ready for the truth, so we’d prefer to keep them in the dark.”

Don’t bother with AT&T’s and Verizon’s current prepaid plans. They are atrociously bad deals because phone selections are miserable and/or 4G isn’t available on prepaid plans. Traditional prepaid plans simply don’t make economic sense next to a 2-year contract either.

* http://www.whyprepaid.org/2013/01/09/device-subsidies-verizon-and-att-have-their-eye-on-you/

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Should You Get a Galaxy S4 or iPhone 5?

My quick answer?

Galaxy S4.

Why?

If you’re like me and you use your phone A LOT, a larger screen just makes sense (iPhone has a 4 inch screen whilst the S4’s is 5 inches). I also think some of Android’s standard features along with the S4’s new features could enhance everyday phone use. iOS 6 is stale and after using the S3 with Android 4.1, I was hooked by how much more use and customization I could get out it.

S4 vs iPhone 5

Both phones perform basic functions extremely well. This means calls, texts, emails, maps, calendar, taking photos and some apps. In some cases, the S4 makes those functions even more useful with features such as Air View. Samsung’s objective to make the S4 a “Life Companion” lays the foundation to turn phones into true “all-in-one” devices. Want to change the TV channel? Use the S4’s “WatchON” app! Want to track your fitness efforts? Use the S4’s native “S Health” app! Check out this list to see what else the S4 has to offer; there are some photo/video features that could be really cool.

Android 4.2 vs iOS 6

If you’re an iPhone user and you haven’t tried a recent Android phone, you’re not going to know how far you can customize phones to be more useful and visually appealing.

  • On iOS 6, you tap an icon to open an app. Android works the same way, but you can also create  “widgets” where information FROM an app, such as Calendar, Weather Channel and even Gmail, is displayed on the home screen. Most Samsung/Android apps, third party included, have widgets.
  • To customize iOS 6, you can change the lock and home screen wallpapers, switch around app icons and create folders that hold up to 20 apps. Same on Android…but more. For example, you can customize the appearance of icons themselves, as I have done below on a Galaxy S3. (I replaced the original app icons with simpler, white icons because, hey, I could! I left the Gallery icon to have SOME color. Also notice the weather widget on the top-right). You can also have live (moving/interactive) wallpapers.

Screenshot_2013-02-21-17-37-24

If hardware matters to you…

…the S4 blows the iPhone 5 out of the water. “Why does this matter?” you politely ask. Indeed, even if the iPhone 5’s hardware isn’t as good as the S4’s, it works extremely well. One reason is Samsung needs its hardware to run Android AND their own software on top, called TouchWiz, which offers all those fancy shmansy Samsung features. Apple doesn’t need to compensate for any additions on top of their OS.

So, where are you in all this? Are you satisfied by the iPhone’s 4 inch screen? Not satisfied? Wish you could customize it? Converted from iPhone to Android or vice versa? Why? What other ways do you customize your Android phone?