iPhone 4: Things To Consider

The iPhone 4 has been announced and pre-orders are live. In fact, pre-orders have gone so well that the date for new pre-orders was pushed back twice; first to July 2nd, and currently to July 14th. Even so, I’ve talked to quite a few people that are on the fence about moving to Apple’s latest and greatest. Here are a few things to consider before clicking that “Order” button.

Carrier Service Coverage

The US cellphone market is driven by contracts, exclusivity periods, and subsidies. Whether we like it or not, we are at the mercy of the carrier. One of the biggest hesitations that fence wranglers have is dumping their current carrier to move to AT&T, and rightly so. The fact of the matter is that there is no one “best carrier”; ultimately, the best carrier is the one that works for you. Each carrier, whether it be CDMA or GSM based, has areas in which it may be stronger than others in both voice reception and data speeds. The new iPhone won’t do you any good if you’re constantly struggling to get a 3G signal or is dropping every other call. On the other hand, if T-Mobile is providing top-notch 3G speeds with little to no dropped calls, then you may want to consider sticking with them for now.

Of course this may be a catch-22; how do you know whether or not AT&T’s service will work for you? There are a few options:

1. Ask a friend/co-worker/family member – The easiest way to find out how satisfied users are on AT&T’s network is to ask a user. As popular as the iPhone is, you likely know someone, or know someone that knows someone that has the iPhone, or at least has AT&T as a service provider. Ask about their own experience with the carrier and be sure to ask about both voice and data. Depending on your own usage needs, you may want to ask for more details on one or the other. How often do you experience dropped calls? How many bars of reception does you phone usually indicate. Are there any dead zones you encounter? How consistent is the data connection? What are the speeds like? Does it usually operate on 3G or on EDGE? The more questions you ask the more information you’ll have to make the decision.
2. Get a GoPhone – Like other major carriers, AT&T has a prepaid, contract free service option called “GoPhone”. If you want to test out AT&T’s service, you can pick up a GoPhone for as low as $24.99 which includes a phone and $25 airtime credit, making the phone itself free (check out their packages here). You can also choose to pick up a handset on its own for as little as $7.99 and purchase an airtime card separately. Of course, you shouldn’t expect these devices to be anything more than a basic 10-key dialing phone, but it is a cheap and easy way to get some impressions on the network first hand. You won’t be able to test the data side too much, but it should give you enough to gauge speed and connectivity.
3. Take advantage of the 30-day trial period – AT&T has a 30-day period during which you can cancel your service without incurring the now $350 early termination fee. You will still have to pay for any minutes and data used during this period, but it’s a good way to test out the exact service you would have. This is a good route to take for those that are fairly certain about switching since you would be obtaining your device at the subsidized price and would not be limited to the GoPhone selection. One thing to be aware of is that although the service has a 30-day trial period, the equipment may be limited to a 14-day return period. If you go beyond this 14-day period, you would be liable for the full price of the device. Even if you do cancel within the 14-day period, you would likely have to pay a restocking fee, usually $35. Of course, you’ll want to confirm these details with your local AT&T rep or if ordering online, be sure to read the fine print as details may change or vary by region

Early Termination Fee (ETF)

As I alluded to earlier, one of the biggest, and priciest, things to consider in switching carriers is the dreaded ETF. If you’re currently under contract with another carrier, canceling your service before that contract period will likely cost you a pretty penny. Recently, Verizon Wireless raised its ETF to as much as $350. Luckily, most carriers do prorate this penalty, but depending on what month of your contract your in, the savings may not be as great as you would like. Don’t be fooled by your upgrade eligibility with your current carrier either. Although contract terms are usually for 24 months, most carrier will allow you to upgrade your handset after only 18 months; but just because you’re eligible for an upgrade doesn’t mean that you are no longer liable for the ETF if you were to cancel your service. To make sure you are completely out of contract, or to find out what your prorated fee would be, call your carrier’s customer service line to get those details. It’s always better to get confirmation from your carrier, rather than make the calculations yourself and assume they are right.

Upgrade Eligibility

Speaking of upgrade eligibility, all is not clear if you’re a current AT&T customer. Whether you have an iPhone or not, you may still not be eligible for a subsidized iPhone 4. AT&T faced extreme scrutiny for the way they handled upgrades from the original iPhone to the iPhone 3G, and still a bit more when the 3G S came to be. It wasn’t until customers wanted to upgrade to these devices after only a year that most realized what a subsidy was. This time around AT&T is trying to avoid those issues by offering upgrades up to 6 months earlier. Any customer that would have been eligible for an upgrade any time in 2010 is being allowed to upgrade to an iPhone 4 at the subsidized price. What about those that are not eligible for an upgrade until 2011? Well, you can still purchase an iPhone 4, but you will have to pay the full unsubsidized price of up to $600. On top of that, regardless of whether you get a subsidy or not, you are still forced to sign a 2-year contract with the iPhone; something that still makes no sense. If you’re willing to pay that high price tag to get your hands on the iPhone 4 earlier than you otherwise would, you could also consider purchasing an import. Various countries, including the UK and Canada, are getting the option to purchase the iPhone 4 direct from Apple, fully unlocked, with no contract requirement. Unfortunately, Apple’s Canadian and UK sites do not allow shipping to the US, but there is no lack of importers that will be more than happy to get a hold of these for you. Of course you can expect a slight premium for these unlocked devices, but if you’re being forced to pony up $600 in the states, and extra Benjamin may be worth it for you to avoid that contract; not to mention the fact that you get a fully unlocked device.

Alternatives

Yes, the iPhone is hot and all over the place; but alternatives are just as hot and have quickly closed the gap. Each major carrier has a “hot” device that is worth considering in case you’re still on the fence about jumping to AT&T.

• Verizon Wireless | Droid Incredible – Verizon can be credited for catapulting Android into the mainstream with last year’s Droid campaign. They’ve done a great job at not only marketing it, but also adding devices to the Droid line. Earlier this year they launched the Droid Incredible by HTC, so you know the build quality is amazing. Along with the great hardware you also get an 8 MP camera and Android 2.1 which includes Google Navigation. At $199 on contract, this phone is definitely worth the look. If you’re interested in HD recording, you may want to wait for confirmation of the Droid 2, which is rumored to have a 1GHz processor and support for 720p recording.
• Sprint | HTC EVO 4G – Part beauty, part beast, one of the year’s most anticipated devices hit Sprint recently, and has so far lived up to the hype. A large and beautiful 4.3″ screen combined with the integrated kick stand makes it perfect for watching video on the go. The front facing camera allows for video calls over both Wi-Fi and Sprint’s data network. If you’re in Sprint’s 4G coverage area, you should take a good look at this beautiful beast.
• T-Mobile | Nexus One – Google made a splash by kicking off the year with the first official Google Phone. The Nexus One sports an AMOLED screen along with a snappy Snapdragon processor making Android 2.1 run as smooth as butter. On top of that, the Nexus is one is fully unlocked and has no carrier branding or bloatware. What’s the big deal about that you ask? Since the Nexus One is coming directly from Google, you can expect to receive the latest updates quickly and fully loaded with all of the features. FroYo is just around the corner, and while everyone else is waiting for their update to be cooked up by the manufacturer, Nexus One owners will be enjoying it on day one.
• AT&T | iPhone 3G S – Yes, you read that right, iPhone 3G S. iOS 4 was released today and is available to all iPhone 3G and 3G S owners. There is nothing wrong with sticking with your current iPhone since you will still be getting most of the features of the iPhone 4. In fact, the omitted features may not even appeal to you. The only two features you will be missing out on are the improved camera with flash (including 720p video recording), and FaceTime video chat. Although those sound like major features, they are not features that are used or appeal to everyone. If you are of the opinion that video chat is a gimmick, and you rarely record on your phone, you can pass on the “4″. You could also use iOS 4 on your current iPhone to tied you over until you’re eligible for a subsidized upgrade. At $99, it is also a cheaper alternative while staring within the Apple ecosystem.
• Palm WebOS – If you’re looking for something that’s different, take a good look at the underrated and underestimated WebOS devices available on Verizon, Sprint, and AT&T. Both the Palm Pre and Pixi feature full physical QWERTY keyboards and true multitasking capabilities. With great price points, and a commitment from HP to continue development on the platform, WebOS is prime for expansion.
• Windows Phone 7 – I never recommend to wait for anything in the tech industry. If you wait for the next best thing, you will always be waiting; however, Windows Phone 7 is only a few months away and could prove to be a great contender. You can probably expect the usual first-gen issues, but the addition of Microsoft to the mobile platform landscape will provide a multitude of both hardware and software options for all.

Number Portability

One of the great things that many people take for granted today is number portability. There was a time when switching carriers meant losing your phone number and being forced to get a new one. Today, you can port your number from one carrier to another, avoiding the need to notify your hundreds of contacts of a new number. There are specific steps to follow to have this done right though.

1. Find Out Your Fee Liability – First and foremost, contact your current carrier to find out what fees, if any, you would incur by canceling your service. This is really just to avoid any unforeseen costs on your end. Sometimes learning that it will cost you $500+ to get out of your contract may change your mind. Other times it may just serve as preparation to pay for these fees when your final bill comes.
2. DO NOT CANCEL YOUR CURRENT SERVICE – This is extremely important. Many people have made the mistake of canceling their current service before signing up for their new service. Canceling your service will result in the loss of your number which you will not be able to recover. When you call to ask about your fees it is for information only, not to cancel or take any other action on your service.
3. Sign Up For New Service – Head to AT&T (or the service provider you select) and go through the normal sign-up process. If you are not specifically asked, be sure to mention that you want to port an existing number, and provide your current number. If you are signing up online, there will be a section specifically for number porting, though it may be called something else, like “number transfer”.
4. Wait For Your Final Bill – The new carrier will work with you previous carrier to have the number ported over. The time to have the number cut over is usually takes no more than an hour, and is often done as quickly as 10 minutes, but in some cases it can take up to eight hours. Once the number has been successfully transferred, your previous carrier will automatically cancel your service and issue your final statement, including any fees you may be liable for. Rest assured, the porting process is free, the fees would be related to a contract being terminated prematurely, or any unpaid service used. Though this should all happen automatically, be sure to follow-up with your previous carrier to confirm your service has been cancelled and that your final bill has been issued. You don’t want to risk being billed for continuing service you will not be using.
5. Enjoy – That’s it, you can continue to use your number and your friends and family will never even realize that you have switched carriers.

Know the Details

For most, moving to the iPhone 4 will likely be a straight forward process, but there are some hurdles to watch out for. The more informed and prepared you are, the easier the process will be. Tech is very personal, and it’s up to you to make the right choice for you. Hopefully, this helps clear things up for some, and helps those on the fence as well.

Still have questions? Head over to the forums and ask away!

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