Monday, December 10, 2012

Convenience - at what cost??

Have you ever asked yourself do I really need a data plan with my Smartphone? Can I eliminate the data plan and rely on free Wi-Fi or Wi-Fi at a “Hotspot”?
How much is too much for convenience?
How badly do you really need data? Can you access the internet at your workplace, can you slip out to a Starbucks, nearby mall, fast food restaurant or grocery store to update email or surf the net for what you need?
Seriously, do you really need that data plan on your handset?
When you ask yourself these questions consider the answers with the service provider (in my case Rogers) fees for plans with data as against an outright purchase of a Smartphone from another vendor and purchasing a talk and text service alone from the provider.
For example the price of an unlocked iPhone 5 32GB at the Apple store is $799.00.
The same phone at my provider, according to its website, is available to customers for “as lows as $279.00 on select 3 year plans”. Looks like you are saving $520.00. I say, good from far but far from good! Why?
Let’s compare the 2 year talk and text plan versus the 3 year talk, text and data plan
A.    2 year talk and text plan @ $37.00 per month
i)                unlimited texts
ii)              1000 minutes of local talk time during the day, and
iii)            unlimited local talk time from 6 pm to 7 am 
B.    3 year talk, text and data plan @ $65.00 per month
As a starting point the website information suggests plans below $65.00 per month provide 300 minutes of day time talk time and unlimited talk after 6 pm to 7 am.
The $65.00 per month plan provides
i)                unlimited texts
ii)              unlimited local talk time
iii)            1GB data per month

If unlimited texting and 1000 minutes of monthly day time talk time meets your need and the convenience of data not a necessity by signing up for the $65.00 per month plan you are agreeing to pay $28.00 per month over and above a $37.00 per month talk and text plan for the next 3 years for convenience of 1 GB data/month – $1008.00 over the term of the plan.
Don’t forget you paid $279.00 down to get that iPhone when committing to the plan.
The way I see, unless there is a business need for data, paying $28.00/month for 1 GB of data is just too much for convenience when free Wi-Fi or a Hotspot is around the corner!!
 At these rates you should be looking for free Wi-Fi and/or Hotspots and not paying $1287.00 for a $799.00 handset.
 Now where is the closest Starbuck’s?

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