The iPhone 3G Data Disaster
With plans this expensive, Alex Kidman wonders if maybe you'd be better off not jumping into the iPhone game early.
I've been using an iPhone 3G (under an incredibly strict Apple NDA) for the past couple of weeks, and, as both a computing and phone device, it's very nice indeed.
In any case, I bring up my like for the device, and the fact that I've had a decent chunk of hands-on time with one because while it's a great phone to use, there's one really significant thing that's badly wrong with the 3G iPhone.
To put it simply, at launch, the existing plans are a complete and unfettered disaster for Aussie consumers. I honestly can't think of a product that's been this keenly anticipated (not to mention this hyped), and yet about which a key bit of information has been kept under wraps for quite so long.
It might seem like it came down to a matter of brinkmanship on the part of the Telcos, all of whom waited to see "what the other guy will do first". Except that "the other guy" (in this case Optus) stated its case mid-last week.
Vodafone and Telstra had plenty of time to release details, but essentially chose not to. The cynical part of my brain suggests that they chose not to in order to maximise confusion, and throw a smokescreen over what are some pretty poor value plans -- you can read PC Authority's analysis of plan value here.
Simply put, those who jump into the iPhone game early are more than likely to get bitten. When Vodafone announced its plans (and then pulled them, only to announce essentially the same things several hours later), there was much wailing and gnashing of teeth, because it was presumed they'd be at least comparable to Optus, if not somewhat cheaper. They're not, but Optus shouldn't be resting on its laurels; being the best of what is essentially a bad bunch isn't something to boast about.
All of the carriers will of course bleat on endlessly about how they'll "protect consumer value" and "avoid bill shock" by "warning consumers", and technically a platform like the iPhone is ideal for that, as you can either SMS, e-mail or call your customers.
It doesn't take a crystal ball, however, to predict that in a month or so, there's tales of woe, surrounding multi-thousand dollar data charges from iPhone users who either weren't warned early enough, or didn't pay attention.
I have no problem whatsoever, by the way, with the upfront cost of the 3G iPhone, no matter what Steve Jobs proclaimed at WWDC back in June. Jobs' worldview often fails to take in the rest of the world, and he was presenting to a US audience. Moreover, Australian consumers are far too used to the idea that the cost of mobiles is zero, which is rubbish. Head into any phone store today and try to buy a similar smartphone outright, and you'll be looking at the pointy side of a grand for just about any comparable 3G model, guaranteed.
What's really annoying about this is that the Telcos want it both ways. They're exceptionally keen to get people using 3G services, and the iPhone is a great device to show off what 3G can actually do. But if you price it at an absolute premium level, people won't do so, and the most recent surveys of phone usage show exactly that scenario.
Sure, you might sting a few individual punters for thousands, but even the Telcos lose out here, as the mass profits they could make by lowering prices won't eventuate, as the masses reject the pricing schemes on offer.
After all, people didn't get hooked on SMS because they "lik splling bdly". They got hooked because the price was right, and critically, cheaper than the calls at the time. This of course doesn't just apply to the iPhone -- wireless data costs are badly out of reach of many people across the board -- but for a data hungry, fun to use device like the iPhone, it's a particularly poignant reminder.
Of course, in an ideal world, telcos would offer iPhone plans that weren't confusing and that simply required you to put down a monthly sum of money -- let's say $100, as the iPhone is still pitched as a premium device -- for, say $300 "worth" of services, and let consumers cover how and when they wanted to use that value.
But that might impact on the telco's immediate bottom line -- and we couldn't have that, could we?
What do you think of the iPhone 3G plans? Have your say by posting a comment below.
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