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So it turns out that all the while we "contract" phone people have been resignedly paying the big networks half our paychecks to keep up with the Phone Joneses, smart, often poor, urban folks have been squeezing great deals out of the providers by going prepaid. Frankly I didn't understand what prepaid even meant...I assumed it had something to do with all that cash that people were coming into the store with. And yes, that's part of it. I sort of assumed I was supposed to feel sorry for the prepaid crowd. But what was really happening was that the major networks AND a whole host of new Mobile Virtual Network Operators (MVNOs) were allowing people to pay exactly what they wanted for exactly what they needed WITHOUT a contract and its stiff penalties for early departure. In most cases, they weren't even paying taxes and surcharges and those ridiculous little numbers at the back of your bill. In order to keep growing, the networks started customizing plans to fit the needs and pocketbooks of all manner of folk. (Haven't you ever wondered how EVERYONE in the world has a cell phone, even in countries where average wages are like a buck a day? SOMEone must be subsidizing that, right? Maybe cell service really IS that cheap in reality, and like pharmaceuticals, Americans just get reamed.)
What I discovered (and of course plenty of you are screaming "duh" at your iPlaids) is that there are really only four big cell networks, and that all these other companies (I'm now on Virgin Mobile, my wife on Simple Mobile) buy time on THEIR networks. There are literally dozens of companies doing this now. Check out this list.This is because after building hundreds of thousands of cell towers all across the country, the biggies have extra bandwidth beyond what they use with their own customers. So they wholesale those data nuggets to these virtual operators who can then seriously discount to prepaid customers. This became so popular that even the big boys had to start doing it to compete, though usually at higher rates.
Who are the big boyz? You already know them...Verizon, AT&T, T-Mobile and Sprint. There's a couple smaller ones, but the point is that nearly all those companies you see advertised are really EXACTLY the same as V,A,T and S, or VATS as I just coined them. Even more interesting is that everyone I talk to claims that there's is the BEST of VATS, fastest, less droppage, more complete, though studies have been done showing that none of the four is a head and shoulders best. As I've found out traveling through the NE, certain networks don't get where you need them to go. End of story. But all VATS have their adherents, and it's just plain wrong to say that one is the best in all circumstances. They all work pretty okay wherever there are a fair number of people living. With annoying exceptions to each.
My Virgin Wireless? Folks, it's $35 a month. I don't talk anywhere near the 300 minutes I'm allowed. Who talks on the phone except to customer service people? And for $45 a month I could talk a blue streak. That whole unlimited data nonsense? Most people simply don't need it. You'd have to be downloading TONS of music, TV and/or games directly onto your very own phone to need a data plan at all. Web surfing and email and most apps take up next to nada in data. $35. And I'm fine. I'm living to tell the tale. Nothing has changed, and I've more than halved my monthly bill.
The catch? You gotta pay full price for a phone. But think about it. Even if they tease you a FREE brand spanking new iPhone, you'd still save money over two years. I bought a great $200 Samsung Androidy thingy and I've already paid for it in savings. Plus I can cancel anytime, change plans, change phones. Maybe even try the awesomely named Ting mobile. You can get used phones for cheap, or take your great aunt's when she passes. You could swipe someone's RIGHT OUT OF THEIR HAND!! Wait, don't do that...
Love to hear your phone stories. I'm just giddy with freedom. I pass by the Wireless R Us guys now and nod a knowing kind of nod, and they nod back, now that I'm not quite so much of a clueless sucker anymore.
Hey guys! Free advertising for your logos below!
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6 comments:
My pre-paid T-Mobile plan gives me 1,500 minutes a month for $30.
The prepaid plans are the ones favored by drug dealers and other miscreants who want to remain unknown in case someone's listening in.
The cell phone world is converging and is almost like gasoline. All cars run on the gas available at any gas station. Or maybe it's closer to computers. Apple vs PC.
In the land of cell phones, there are only two technologies: CDMA and TDMA.
Code Division Multiple Access and Time Division Multiple Access. CDMA is bigger in the US, but TDMA is bigger almost everywhere else.
Yes, the discount you get on a phone if you sign for two years is not what it might seem. But putting the new iPhone in the hands of subscribers has become so costly for the VATS, or VAS (it's possible T Mobile doesn't offer the iPhone yet) that earnings have been hit.
This is good news for Nokia, which makes a great smart phone for a lot less. Maybe Nokia will make a come-back?
I take it a step further and buy minutes from T-Mobile in $100 chunks at 10 cents/min. No monthly plan needed. I make calls so rarely I usually don't spend more than $200/year.
I have been feeling like a chump about this a lot lately. But a chump's gotta bide out the contract before he can unchump himself, right?
Most providers have a pro-rated deal if you quit. So if it's $200, it's $100 after one year, and $50 after 18 months. Worth looking into.
I'm on Credo Mobile so I don't support AT&TeaParty any more.
Today's NY Times has an article that says more or less exactly what you say here! Talk about in synch….
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