I cancelled my AT&T voice/data subscription when the iPad’s new MicroSIM was introduced earlier this year. Paying $29 per month for unlimited data compared to ~$80 for national unlimited data, limited voice and SMS was a no-brainer. Almost to good to be true and unlike AT&T’s regular monopolistic behavior. Well, we quickly learned it was a bait-and-switch scheme as only three weeks later the unlimited plan was withdrawn and replaced by a 2GB plan for $25.
But despite not using AT&T’s voice or messaging service I can still make outbound calls via Skype and receive in-bound messaging via Google Voice. Nothing has really changed except I’m paying about 1/3 of the price (never let go of that unlimited plan). And enabling the same for the iPhone as it’s an easy switch in the APN settings.
This just shows how broken the whole business model is and how these old companies are holding us back, consumer as well as new innovative startups. They are preventing us from using the full range of the technology. If everyone could get access to global unlimited, high-quality and fast data for $20-$30 per month we’d be on our way to create the next big growth industry: the mobile economy. It would be great for everyone, not just AT&T’s short-term revenues derived from monopolistic and cartel pricing. Their margins are disgustingly huge, especially from international roaming.
But with the average age of a senator at 60 and member of the house at 55 I don’t think we should expect anything from the government but old industry bailouts and handouts to the oil, real estate and telco industries. It’s really too bad as this country’s future does not belong to GM but to small, smart teams creating new mobile applications.
AT&T’s latest anti-consumer changes to their data plans made me start to think how I could leverage the Mini SIM I’ve in my iPad 3G for my iPhone. I currently pay $39.99 per month for my iPhone plan plus an additional $10 in fees and taxes. That includes 50 anytime minutes, 200 text messages and unlimited data (the old $20 plan). This plan is not publicly available just used when frugal consumers - like myself - complain and threatens to leave.
But I don’t need text messages or voice thanks to Skype and Google Voice. I just need an unlimited data plan for my iPhone, just like I’ve for the iPad. A few minutes later with my favorite search engine I came up with the following solution:
- Create a SIM card out of a Mini SIM, cancel your current plan and subscribe to the iPad’s data-only plan. Aaron Nelsen has outlined how in his awesome post “Using a Micro SIM in a iPhone 3G”
- Get a new Mini SIM by reusing the one in your iPad, call AT&T and get a free replacement or buy a $15 replacement card online
- Signup for the $14.99 or $29.99 data-only plan - these will change by June 7 as per this announcement
- Signup for Google Voice and forward all calls as transcripts and text messages to your email inbox
- Download Skype which now offers free calling over 3G until the fall
Initially the savings of about $20 per month might seem paltry but it stops AT&T from charging exorbitant fees for additional calling, international voice mail, text messages, data usage et cetera. In reality the average saving should be around $50 per month as few users still have access to the $20 data plan and the low voice calling plan. An additional benefit with reusing the data-only plan is that you can cancel anytime - there is no contract.
The outrage over the rejection of Google’s iPhone Voice App has hit Apple and AT&T right in the face. Who was the clever dude at either of these companies that thought that they could fly under the radar with declining Google one of their most sought after apps?
The spin is now in full effect as AT&T is denying any involvement and Apple coming up with a very lame excuse: “GV is hurting iPhone’s distinct user experience”. Apple is in quite a pickle: they need to play nice with their business partner AT&T (who is known for having the worst customer service in the galaxy) while not making their *fans* turn on them. Speed is of essence here (as always) as there is a global tidal wave building up not see since the days of Gil Amelio.
When the news about this story hit the tape I smiled. It illustrates so well one of the reasons I love the web: transparency. Dirty deeds done dirt cheap will be hard to get away with in a meritocratic, transperant and authentic world.
Any startup understand these three things. Your brand is who you are, how you act and what you do. It’s very clear to people / customers / users if a company / brand is authentic or not.
We are far away from being in a world where transparency, authenticity and merits rule. Food processing companies are still refusing to let their customer know if the food they are selling is genetically engineered. Telecom companies have monopoly and overcharges on SMS that are virtual free. The banking industry refuses to come clean about how much toxic assets they have on their balance sheets.
It would be cool to enter a world where business is actually creating value w/o hiding, spinning or cheating customers. It’s great to see FCC finally doing their job (SEC, take a note) and I hope we’ll see the Google Voice app in the iTunes store really soon. It’s a great service, good for competition and the right thing to do.
Inspired by Michael Arrington and and my good friend Luke I’m quitting AT&T’s 6Mbits Internet subscription and signing up for a 30Mbits Internet connection with Comcast. Just $20 more per month for 5X the speed.
We have been 100% web-centric* for the past 5-6 years but with 5X the theoretical speed we can now enjoy HD movies, better video conferencing and snappier overall usage. All starting at noon on 8/17.
*) Phone (VoIP), TV Shows, Movies, virtual office, video conferencing et cetera
PS. I’m also downgrading my Unlimited wireless plan to the cheapest 450 minutes per month as I’ll use VoIP for my calls for a $60 per month saving.
