While at home in the States, I spent some time trying to figure out how to cut my parent’s combined telco costs. In particular, I wondered what I could do to improve the situation both at home and my father’s office; you’re looking at two landlines, dialup on both, and no mobile phone usage. Both have unreasonable long distance bills, and at the end of the day, the internet connectivity isn’t that great.
My wife’s father has it even worse: the monthly on his landline is higher in his neck of the woods, the lines are older and noisier, and neither DSL nor cable will ever make it to his house. I ran a lot of numbers while at home on my parent’s situation, and at the end of the day, the phone companies have everyone by the nuts: you can’t beat the system.
Let’s take a look at the second scenario, where you live too far away for broadband:
- The local telco has a monopoly,
- The local lines are so noisy you get very slow dial-up, and
- Broadband will never reach outside the 3 mile “loop.”
On top of this, you want a mobile phone for emergency use. In the UK, you can get a Pay-As-You-Go phone: you buy the phone, and “charge” the phone by putting money onto it. Now, you could buy the phone used for as little as £5 or £10, and put £10 in credit on it. You’d end up with a phone that was usable for (depending on time of day, etc.) good for 20-40 minutes of usage before you ran out of cash.
The most important feature of this scenario is that you don’t pay for time you don’t use. Put another way, if you don’t use the phone, you’ll always have £10 worth of credit on the phone. Period. Six months go by without using it? You still have credit.
Now, in the US, you can’t get Pay-As-You-Go. Instead, you can get an impoverished phone that you pay $15 per month for, and you get a limited number of minutes (or your range is limited, or the numbers you can call is limited, etc.). If you don’t pay in a given month, well… you can’t. I mean, not without the collection agency coming to your door and asking where your monthly check to Sprint, Verizon, or whatever other TelCo is ripping you off.
Putting some numbers on this:
| Item |
Monthly Cost |
| Line lease: |
$35 |
| Dialup: |
$15 |
| Long distance: |
$15 |
| Mobile: |
$20 |
| Total |
$85 |
You’re out $85/month in telecommunications costs, and for what? A noisy dialup connection, expensive long distance, and a mobile phone you almost never use. (In the real world scenario I’m actually trying to solve this problem for, the long distance charges are slightly lower, but they aren’t unreasonable or unimaginable).
What can we do with that $85? How else could we use it that didn’t require us to pay a $35 tax just to have a landline, so we can use a lousy dialup service?
GPRS
The solution is ugly, but it might cut costs in several categories at once. GPRS stands for General Packet Radio Services, and a number of mobile phones in the states (and a number of providers) now use it for data transmission. If we know that
- We want a (pair of) mobile phone(s),
- We want to eliminate long distance charges,
- We want access to the WWW, and
- Our access speed already sucks
then having to suffer downloading webpages over a mobile phone might not be that bad. Again, I think the numbers are going to tell us if this makes a difference.
A combination of info from the FreeCellPhonesGuy and some Google searches has brought me to Nova Media, a German outfit that makes some nice software for OS X. For $100, you get a piece of software that will detect your mobile phone and handle all the setup, leaving you ready to surf the WWW in style. I don’t think this is necessary, but the fact that it exists means we can do it.
Because cables suck, I’ll look for a Bluetooth solution. Instead of having to plug the phone in, you just have to be nearby, and the computer talks to the phone using a wireless protocol (Bluetooth), and the phone talks to the WWW (using GPRS). In August of 2002, Wei-Meng Lee wrote about this at the O’Reilly Wireless DevCenter. Although he didn’t go into using the T68i as a modem, someone in the comments did. (I found another weblog entry about doing this on a Pay-As-You-Go mobile in the UK, which doesn’t help (directly), but is worth noting, and further verifies the running theory.)
Those comments save us $100. It doesn’t look like we actually need to shell out for software to do it for us. If we were globetrotting with our Powerbook, auto-configuration might be nice. If we’re sitting in one place in the world, it probably isn’t necessary.
Given what we know, let’s assume that the Sony Ericsson T68i is the phone we’ll be using. And, we’ll assume that we want to connect using Bluetooth (wireless), since we know it works.
Which Provider?
That’s tough; what is coverage like in central Ohio? According to coverage maps of unknown vintage, it looks like SprintPCS might cover the area I’m looking for; Verizon does as well.
[Matt calls Verizon customer service... talktalktalk]
I just had a very helpful conversation with a sales rep from Verizon. She even gave me a direct-dial number if we decide to purchase services from Verizon. Here’s what we’ve got:
| Item |
Monthly Cost |
| 500 minutes |
$50 |
| Second phone |
$20 |
| Data |
$80 |
| Total |
$150 |
Oy! Now, to be fair, that’s for unlimited data. For 20MB/month, I could pay $40, and pay $.002 per KB after that. So, depending on usage, I might be able to bring that down to $110/month.
Lets try SprintPCS. They have their own proprietary data network, but as it turns out, you can still hit the WWW via OS X when you’re subscribed to Sprint. Do we see any massive price savings with Sprint?
[Matt talks to a SprintPCS customer service rep., who doesn't give him a direct line if he later wants to purchase products... too bad. But, still friendly and helpful.]
| Item |
Monthly Cost |
| 500 minutes |
$60 |
| Second phone |
$27.50 |
| Data |
$0 |
| Total |
$87.50 |
Wow! With SprintPCS, data comes out of your minutes. The odd kicker for a second phone is because you pay $20 for the extra phone, and $7.50 to enable that phone to surf the WWW as well. For another $15, we could kick that up to 800 anytime minutes; in either case, weekend and evening minutes are free (night starts at 9PM and ends at 7AM). And, truth told, it would probably be better to go to the 2000 minute plan:
| Item |
Monthly Cost |
| 2000 minutes |
$100 |
| Second phone |
$17.50 |
| Data |
$0 |
| Total |
$117.50 |
The reason for going up a level is because the second phone gets cheaper by ten dollars, so going from a 500 minute plan to an 800 minute plan (from $88 to $103) isn’t a good idea; going from $88 to $118 for 2000 minutes makes more sense, as the per-minute charge when you run out of minutes sucks.
The bottom line
With a mobile phone only solution (with data connectivity) we’re eliminating a landline, ISP, and long distance charges. If our total usage during weekdays is less than 500 minutes, our cost is roughly $90/month, which is in keeping with our round-numbers estimate of current phone and ISP costs. As a side effect, we get weekends (which is when internet usage is probably highest, and the best time for calling family members around the country) for free, free caller ID, free voicemail, instant messaging, and other similar mobile-phone-type-things. The single largest downside is the loss of the existing home phone number, although it is certainly worth exploring whether than number can be transfered to the mobile phones.
If typical daytime usage of phones is more than 500 minutes a month, then we’re looking at kicking up into the $120 range for services, which is around $30 more than we’re currently spending per month.
So what to do?
Now, I email a few friends, and ask what they know about mobile service providers in the states. Is Sprint the way to go, or is there some reason we want to avoid them like the plague? Otherwise, it seems like we can gain quite a bit, given the existing use patterns, by switching to a wireless-only setup.