Saturday, November 3, 2012

How to Spend Thousands on a Mobile Phone

 Many people who have used iPhones exclusively  don't realize the limitations of the device.  iPhones are media darlings and Apple's profits resulting from the loyalty of its customer base are all we hear about.   Here are few sobering points to consider.
-Apple actually has a minor position in the mobile market place....despite its profits.   Over 70% of the world uses an Android device!
.....for good reasons.....
You cannot save files in an iPhone......incredible as it seems.  On my LG Optimus I save different types of files in "my documents" just like any normal computer but as far as I can figure out the only files saved on iPhones are iTunes. 
IPhones use proprietary chargers where as my Android device will charge with any USB cord....not only that but iPhones have hard wired battery packs...no charger?.......no call ......I carry a spare battery and just change it if I run low on power in my Android device....try that with your Iphone.
IPhones have no expandable memory.....no card slot! You cannot take pictures of your holidays and transport them on an SD card......unlike my android device........oh and here's the kicker.....the retail price of my LG 2X Optimus was $299.........compare that to an iPhone which is MORE THAN DOUBLE THE PRICE.
more techy details...my LG has a larger screen than an iPhone 4 and a dual core processor as well.....and my device is nearly 2 years old......the new one is a quadcore!........the iPhone 5 is still just a dual core device.
So why do most people buy iPhones?......well actually most people don't.
Something that I went through during my last mobile device upgrade was trying to integrate the 3 things that are essential when shopping.  I needed a device, a service provider and software....meaning apps and an operating system.  Everyone wants these components to connect seamlessly.  I found that getting there is easy.....as long as I was willing to pay....up front....every month.....and for YEARS IN TO THE FUTURE.  I hated that choice.  I paid dearly to the big providers for years like most Canadians because the the fed...meaning the CRTC created a oligopoly that crushed competition and led to decades of price gouging by Rogers, Telus and Bell.   One cannot blame these corporations for taking advantage of protected market conditions created by government policy.
Recently, the fed sold some band width..frequency licenses....by auction to create some competition and lower prices for consumers. It has been fairly successful but the fact remains that unless we shop very carefully for our hardware and services we as Canadians still end up paying more than a  THOUSAND  DOLLARS  A YEAR!.
 A mobile phone these days is essentially a micro computer that is commonly referred to as a "smart phone".  The industry works on a obsolescence rate of about 18 months.  The biggest trap that the "RoBelUs" (Rogers, Telus and Bell) set is the 3 year contract that includes all 3 components...service, hardware and software.  My research led me to estimate that these contracts cost about 4 thousand dollars plus add ons that vary from an additional few hundred dollars up to a couple of thousand, depending on how often people lose or break their phones and how much roaming and other crap that the companies gouge people for.  Basically a hundred a month for three years includes a new device with an upgrade every 18 months, Canada wide calling, text messaging and data (email and web browsing) and taxes.  It is possible to pay less but it's not a level playing field.
 The first thing that I tried to avoid was signing a 3 year year contract. I absolutely hated getting that bill every month automatically charging my Visa for more money than it should be and then having to phone the company to whine about it and try to claw back some of the money!  Once you sign and hand over your card, it doesn't matter whether you lose your phone, leave the country or die...you will be charged for the next three years!....don't do it. 
So my best move of all is DON'T GIVE THE COMPANY YOUR CREDIT CARD NUMBER)  unless you don't care how much you'll be charged.
 Second, don't sign a service contract. 
And third don't buy a device...a phone that is locked to the provider.  If you do and then you lose or break your phone you will have buy another phone while you are still paying for the one you lost!  Plus, if you do manage to change providers you will have to pay to get your phone unlocked.
Here's how I currently do it.  I bought a new LG smartphone....UNLOCKED.....
from an ebay seller.  That was two hundred dollars.  Then I purchased a month to month service agreement from Wind Mobile that has no limits and no contract,  plus a 15 dollar SIM card.  This means that I can phone anywhere in N. America, text anywhere in the world and surf the net endlessly ..not only on my device ...BUT ON MY HOME COMPUTER AS WELL.  I DON'T PAY FOR A SECOND INTERNET CONNECTION AT HOME. I tether my phone. The cost is 46 dollars a month including tax paid in advance,,,no post service billing.  The only time I've had to pay more is when roaming but it's still BY FAR the cheapest way to go.
Most people don't do it this way and they all mostly either get less service or they pay a lot more.   The reason is that the big companies HATE CUSTOMERS LIKE ME because they can't lock me into a big contract and then use it to borrow more money to buy arenas and waterfront condos all the while charging my credit card. I'm only thinking of our hard earned money. It sounds simple but I didn't find it so.  I tried to pay cash for a "pay as you go" phone with a data package from Rogers this summer...it was so expensive and complicated and time consuming that I gave up and used my Wind phone and ate the roaming charges.  The website states that the service is available but to get advertised price you have to pay with a credit card!  To pay cash I went to the retail store and I had to buy a voucher that cost more than the price of the service.. People who live in rural areas suffer the most from the high prices of service.   I bought out my Telus contract to the tune of 400 bucks because of my frustration with being charged long distance fees on what I thought were local calls,  I left Koodo for the same reason.  And I left Roger's because I was lied to about the system access fee.  I was told it was a government radio license fee....I paid that fee for 9 long years.  Wind has been great so far.  The drawback is that its only available to urbanites.   Crazy world huh?