One of the big things holding me back from buying an iPhone in the first place, aside from lack of SSH (which was soon resolved), was an article about the hidden evils in the Terms of Service contract.
Well, not sure about whether to take things at face value or not, I bounced my concern off my friend Phil, who’s extremely knowledgeable about telecommunications.
He wrote me back a wonderful point-by-point analysis, which swayed my decision. Feeling that other people might benefit as well, I sought permission from him to reprint it here.
iPhone Requires a 2-Year Contract with AT&T.
1. True; they make the 2-year contract requirement pretty clear. This isn’t a great thing but it’s pretty standard in the U.S. when you buy a phone.
Expensive: Requires $2,280, Over $1,730 in Wireless Costs.
2. Also true, though he overstates the price. The service plan runs about $60/month ($40 voice, $20 data); if that’s too expensive, the iPhone is probably a bad idea. That’s still less costly than a Blackberry or Treo (both about $80/month when you turn on the features needed).
Double Billing. You and the Caller Both Get Charged for the Same Call.
3. True, but not unique to the iPhone. Every cellular carrier in the United States save for a few Nextel plans will charge airtime on both incoming and outgoing calls. If you call another wireless phone user, I suppose you could call that double-billing (though if that other user is on the same carrier [ATT], the airtime rate is the princely sum of zero cents per minute).
All Use of the Networks Are Always Rounded Up to the Nearest Kilobyte or Minute.
4. Standard practice for the wireless industry. The per-kilobyte complaint is pretty funny, though, since the charge per kilobyte for domestic data usage is zero cents per kilobyte.
Customers Are Billed for “Network Errors†and “Network Overhead”.
5. I have no idea what he’s talking about, but it makes no sense.
Billed Even Though the Call Doesn’t Go Through.
6. Basically untrue. Billing in a wireless system begins when the call is answered, though the timer starts when the call is initiated. In other words, if a call rings for fifteen seconds and then is answered, the clock begins at 15 seconds and counts up from there.
Bogus Fees Added to the Bill: Regulatory Cost Recovery Charge
7. While I agree that regulatory recovery fees are basically bogus padding, I challenge him to find a wireless (or, for that matter, conventional wireline) carrier that doesn’t do this.
$175.00 Termination Fee.
8. The early termination fee is pretty well standard throughout the industry. There are certain circumstances where you can avoid paying it (for example, if they raise rates during your contract term).
International Messages Are Charged Additional Fees as Are Files Over 300Kbps.
9. International text messaging (i.e. SMS) costs extra on every cellular carrier I’m aware of. The picture/video messaging charging he complains about isn’t even relevant to the iPhone. And the “additional fee” for large messages that he talks about is irrelevant to the iPhone. My phone communicates directly with my IMAP server over SSL; there’s no way that ATT can tell how large a message is, let alone bill me for those messages over 300K.
Over Your Quota: Get Gouged: 40¢ Per Minute and 69¢ Roaming Offnet.
10. Once again, he’s whining about something that’s absolutely standard in the industry: if you go over your bucket of minutes, you pay a pretty high rate. He conveniently neglects to mention that UNUSED minutes from your plan roll forward into the next month and can be used to offset high usage up to a year later. If that’s not enough, just call and switch to a higher plan and ask them to make it retroactive to your previous month’s usage.
The Services Are Not Secure and Can’t Block Your Phone Number.
11. “Not secure” is a leftover from the days of ANALOG cell phones, which could be listened in upon pretty trivially. And they’re saying that when calling certain toll-free numbers, you can’t block your caller ID since the recipient pays for the call. There’s a MENU on the iPhone that allows you set the default for whether you send caller ID or not; you can also set it per-call. In other words: JUST LIKE A LANDLINE.
The Current Mobile Email Service Doesn’t Support Attachments.
12. Absolutely false. You can send photos trivially (about the only sort of attachment that makes sense to create on a phone), and the iPhone will read a lot of formats (Word, Excel, PDF, JPEG at a minimum).
Prohibited Uses and “Unlimited†Sales Hype.
13. The prohibited uses language is pretty standard wireless carrier language. I agree with him that the claim of “unlimited” is pretty misleading marketing puffery, but it’s an industry-wide problem. If you use your FIOS connection at full bandwidth 24×7, you’ll soon discover that “unlimited” basically means that you’re not billed per unit of data, but that you can still be cut off if you abuse the service. There’s basically nothing you could do on the iPhone that would cause this to happen, though.
Service Is Not Intended to Provide Full-Time Connections: Unlimited is Hype
14. Same as above.
Wi-Fi Service is Limited
15. I think he’s deliberately misinterpreting this one. He’s talking about a completely different wi-fi service that one can purchase through AT&T that has nothing to do with the iPhone. There is of course no limit at all to the number of times in a given time period that the iPhone can connect to a wi-fi network.
“Offnet†Restrictions
16. Another deliberate misinterpretation, I think. “Off-net” usage refers to areas where you’re roaming. Since cell phone roaming charges basically don’t exist anymore for the consumer (the carriers charge each other, though), what they’re saying is that you can’t buy the phone and then use it full-time where, say, T-Mobile has service and ATT doesn’t.
Plan Goobly-gook
17. He’s so incoherent here that it’s hard to figure out what he’s mad about.
Comparing US and Other Broadband Countries: America Is being Laughed At.
18. Perhaps he should move! He forgot to mention that countries using the metric system think we’re pretty silly too–but I’m sure he would have if he’d thought about it. Seriously, he has a point: mobile telephony is more advanced in other parts of the world (largely due to standardization on one network type–GSM). But I’m not sure why that would be the fault of ATT and the iPhone.