Prepaid Smartphones: Not For Everyone

Leap Wireless announced this week that its Cricket prepaid cellular service provider would offer the Apple iPhone 4 and iPhone 4S starting June 22. The devices will cost $399 and $499, respectively, and can be matched to a voice and data plan that costs only $55 per month. No contract is required, and you can cancel the service any time you want. Sounds like quite a bargain compared to the $70 to $100 monthly plans that some smartphone owners are chained to for 24 months at a time.

Before you hop on the prepaid bandwagon, however, you ought to know a few things. Prepaid plans aren't for everyone and sometimes don't make sense at all. Here are some pros and cons that business users should consider before taking aim at a contract-free life.

PROS:

No Contracts = Freedom: One of the worst aspects of any cellular phone is the contract that accompanies it. Wireless network operators typically want customers to sign a two-year service agreement in order to get special pricing on devices. Prepaid providers, such as Cricket Wireless, Boost Mobile, Virgin Mobile USA, MetroPCS, U.S. Cellular, and others, don't require contracts, which means you can drop the service at any time, for any reason.

Low-Cost Monthly Service: Prepaid services generally cost less than those offered by post-paid providers. For example, I pay AT&T about $100 per month for 450 voice minutes, unlimited messages, and 4GB of data. By way of comparison, Cricket's plan includes unlimited voice, unlimited messaging, and 2.3GB of data. I'll spend $2,400 during two years with AT&T. Staying with Cricket for two years, however, will cost just $1,320.

No Early Termination Fees: Because you're not signing a contract, you're not subject to an early termination fee, or ETF. These are fees levied by wireless network operators to discourage you from leaving a contract early. No contract means no ETF.

No Credit Checks: People looking for prepaid wireless service generally aren't subject to credit checks. That means if you're sporting a credit score of 500, you will still be able to get wireless service. National wireless providers require credit checks for anyone signing a contract. Poor credit can necessitate a significant upfront deposit that's held by the carrier.

CONS:

Limited Device Selection: Some prepaid providers offer top-of-the-line devices, but most do not. That means you might be stuck with an out-dated or basic device that's not as capable (and, let's face it, not as sexy) as what's offered by the big boys. Right now, Cricket is the only prepaid provider offering the iPhone. All the others stick to Android devices. A few prepaid providers offer BlackBerries. Even fewer offer Windows Phones.

High(er) Device Cost: The nature of contract-free service means you're going to pay a higher price for the device when you initiate service. Cricket is charging $499 for the 16GB iPhone 4S, when AT&T, Sprint, and Verizon Wireless charge $199 for the same device. Why? The post-paid service providers are subsidizing the device cost and recouping the money during the life of the service contract. Since prepaid providers can't count on you to stick around for two years, you have to pay the full (or nearly full) retail price of the hardware.

Limited Service Availability: The Cricket Wireless network does not cover the entire U.S. region. In fact, it's not nearly as expansive as the networks offered by the national carriers. Cricket does, however, have a roaming agreement with Sprint, so that Cricket customers can use Sprint's network when Cricket's own network isn't available. Many of the prepaid regional players have similar arrangements. Regional operators, in particular, can have very limited service footprints.

Aging Network Tech: While some prepaid providers, such as MetroPCS, are updating their networks to faster 4G technologies, many are still stuck using 3G. That means slower mobile broadband speeds. The four major wireless network operators have clear 4G LTE plans and are well under way with their build-outs. None of the prepaid providers is even close.

Skype finally moves out of beta on Windows Phone

Microsoft has released version 1.0 of Skype for Windows Phone, thus fulfilling a promise the company made at Mobile World Congress to move the app out of beta by April.

The new version includes a new feature that lets you search your contacts and add them on Skype. Other improvements include the ability to call landline phone numbers, a quicker boot time, and other bug fixes. It also includes all the Skype basics such as audio and video calls over 3G, 4G, and Wi-Fi, and group messaging.

However, you still can’t receive Skype calls while the app isn’t running on your phone. Apparently this is because of limitations within the Windows Phone OS and Skype, according to Microsoft. Hopefully this will change with the release of Windows Phone 8. This kind of functionality could really be a key selling point for Microsoft to gain some footing over Android phones.

You can download the latest version of Skype for Windows Phone on the official site. Let us know what you think in the comments.

HTC Dragon Series pops up in China for tight pockets

The HTC One series may not be reaching every borough and side street on earth, but HTC’s push to bring a similar experience to China is popping up with great promise this week. HTC announced this “Dragon Series” several months ago and is now unleashing the several sets of smartphones to a variety of Chinese carriers very soon (if not today!) Head down to your local China Mobile, China Telecom, or China Unicom store today to see which of these little beasts you’ll be able to purchase for your very own!

 
Under the 4-inch S-LCD WVGA display on each of these models, you’ll find a 1GHz single-coreprocessor with 512MB of RAM and 4GB of internal memory. Unlike the heavier hitters in the HTC One series, the Dragon Series have microSD card slots for memory expansion – up to 32GB! You’ll also find Beats Audio for speaker and headphone quality boost, and each model is looking like it will cost $318 (or 1,999 yuan). The Desire V looks to have that as a solid price while the other two models have not had a definite confirmation for their end-cost.

Both the China Telecom and China Mobile models, Desire VC and Desire VT, will have dual-SIM card slots so you can flip back and forth between two carriers on the go – cool!

The Nokia Lumia 900 Is Now Available In Canada, Hits The UK On April 27th

The Nokia Lumia 900 train is rocking. After its first stop in the US on Easter Sunday, the party moved north of the border where Rogers is now selling the supersized Windows Phone. However, in a few short weeks, the phone will hit the UK on April 27th through Phones4U and Carphone Warehouse. It can be pre-ordered today.

The Canadian version is nearly identical to the one hawked by AT&T in the states including the CA$99 price — expect that’s with a 3-year contract. The rest is the same though including LTE connectivity and Windows 7.5. It’s more of the same in the UK where the only major difference involves the inclusion of HSPA+ instead of LTE.

The Lumia 900 is hitting at an awkward time. It’s a fine device but those looking for a new phone might want to wait a bit longer to see the upcoming competitors. The Samsung Galaxy SIII is rumored to be announced later this month and then of course the iPhone 5 could drop this summer. Patience is a virtue, you know. That said, I’m completely enamored by the Lumia 900. Windows Phone is so efficient and the few native apps are beautiful on the large and bright screen. I just the camera was on par with the one in the iPhone 4S. If you must get a new phone now, the Lumia 900 deserves a look even if it’s on AT&T.

AT&T Finally Allows Unlocked iPhones for Out-of-Contract Users

AT&T's longstanding policy against unlocking iPhones comes to an end this Sunday, allowing users to take advantage of cheaper service when traveling abroad.

To unlock an AT&T iPhone, subscribers must have completed their service contracts -- most contracts last two years from the purchase of the phone -- and their accounts must be in good standing,AppleInsider reports. Users who are in the middle of an iPhone service contract must pay an early termination fee in order to unlock the device.

An unlocked iPhone is ideal for users who are traveling overseas, because instead of paying for expensive service from AT&T, they can pop in a cheaper SIM card from a local GSM wireless carrier. Unlocked AT&T phones also work on T-Mobile's network, but data speeds are slower than 3G. AT&T's unlocked phones not work on Sprint or Verizon, due to their use of CDMA networks that don't rely on SIM cards.

On Sunday morning, AT&T's site still said iPhones were not eligible for unlocking, although some news reports indicate the service is available at AT&T stores.

Previously, AT&T refused to unlock subscribers' iPhones, though the company had no problem unlocking other phones. Jailbreaking was the only way to free the iPhone for use with other carriers.

AT&T didn't say why it had a change of heart, but Verizon Wireless and Sprint both allow users to unlock their iPhones for international use, even while still in contract. Their only condition is that users' accounts must be in good standing for a short period of time.

AT&T's out-of-contract policy is less favorable, but it could still come in handy for users who've hung onto their older iPhones and don't want to pay a fortune for service abroad.

For new iPhone buyers, Apple has sold unlocked iPhones at full price since mid-2011.

HTC, Sprint announce Evo 4G LTE smartphone

IDG News Service - Sprint on Wednesday introduced the HTC Evo 4G LTE smartphone, adding a new phone to a stable of devices that will be compatible with the carrier's high-speed network when it launches soon in the U.S. The Evo 4G LTE is a "superfast" smartphone that sets the "gold standard" in multimedia experience, said Dan Hesse, CEO of Sprint, during a launch event in New York City.

The Evo 4G LTE has Qualcomm's latest 1.5 GHz dual-core Snapdragon S4 processor. The phone has a 4.7-inch display and runs the latest Android 4.0 OS, code-named Ice Cream Sandwich.

The smartphone is priced at $199.99 with a two-year contract with the carrier. It will become available in this quarter and Sprint will start taking pre-orders on May 7.

The new Evo has an 8-megapixel high-definition camera, which an HTC product designer said can take video and pictures simultaneously.

Sprint has announced that six cities, including Atlanta, Baltimore, Dallas, Houston, Kansas City and San Antonio, will get 4G LTE by midyear. The 4G LTE network will be completed in the U.S. by the end of 2013, Hesse said. Sprint already has a 4G network built on WiMax mobile broadband technology.

The Evo 4G LTE will also be the first smartphone to have a technology called HD Voice, Hesse said. HD Voice is a combination of technology in phones including dual microphones, decoders and network technology to deliver less muffled calls. It also reduces background sound to make calls clearer.

Another feature is the new Sense 4 user interface, first announced earlier this year, which will make the smartphone easier to use and navigate. The smartphone has a kickstand at the back, a feature borrowed from previous Evo models.

It will come with Google Wallet, which uses the phone's Near Field Communications technology to let people buy products by swiping the phone against a reader at a cash register.

The phone has similar specs as a new line of phones, the HTC One smartphones, introduced earlier this year, although the Evo 4G LTE has a different body. The HTC One phones have just become available in Europe and aren't yet on sale in the U.S.

Sprint earlier this week launched the LG Viper smartphone, a dual-core smartphone for the 4G LTE network. The Viper runs Android 2.3 and will be available for pre-order on April 12.

$1.5 Billion in opening weekend for ipad 3

Apple’s three million new iPad sales in the opening weekend are impressive but not particularly surprising; what the company has really demonstrated with the third-generation tablet isn’t that it can create a coveted product, but that it can now deliver in bulk. Stock shortages have plagued Apple launches since the original iPhone, the company seemingly unable to meet demand for its high-profile phones and tablets. In fact, it’s become a measure of success for stores to sell out and lines to snake outside for days and weeks as would-be owners queue desperately for the rationed hardware. Still, while “sell-out success” makes for good press hyperbole, turning customers away empty-handed isn’t best for business. With the new iPad, though, Apple showed that the supply chain just got serious.

For a while, it seemed like the new iPad launch would go just as with its predecessors. Online pre-orders opened on Friday, March 9, a week before in-store availability, and by the following Monday delivery estimates were stretching 2-3 weeks away. Even now, online sales still warn of that same delay in shipments.

The expectation, then, was that competition would be fierce for units in-store on March 16, and the traditional queues – perhaps truncated a little this time around, though the usual zealots were out in force – formed. Nonetheless, a few hours after opening time at 8am, the lines were gone and new iPads still waited on shelves.

A few knee-jerk analyst reactions showed just how perverse our expectations had become: Apple hadn’t sold out of every last iPad, and so the tablet must’ve been underwhelming. Yet take a step back and the scale of the change from last year’s iPad 2 launch is clear: a simultaneous debut in ten countries across the world, including the gadget-addicted US and UK, with sufficient supplies to go around. Today, you can walk into a store and leave minutes later with a new iPad.

"Apple’s achievement will be doubly-impressive on Friday"

Apple’s achievement will be doubly impressive after this coming Friday. On March 23, the new iPad goes on sale in a further 24 countries, taking the total to 34. Contrast that to the iPad 2, which initially saw an under-supplied debut in the US alone, and then 25 more locations later in the same month, for a total of 26.

“The new iPad is a blockbuster with three million sold” Philip Schiller, Apple’s senior vice president of Worldwide Marketing said today, “the strongest iPad launch yet.” That strength isn’t just in terms ofcustomer demand, but of Apple’s ability to leverage its formidable supply chain and gets stock to where it needs to be so that more buyers go home satisfied.

The iPad isn’t for everyone. Still, Android tablet manufacturers can no longer count on patchy availability for opportune gaps in the market: if people want a new iPad, they can have one today. The tablet wars are nowhere near over – Windows 8 will see a fresh batch of OEMs join the fray later in 2012 – but rivals will face an Apple that not only has razzle dazzle on-stage, but the well-oiled machine behind the scenes to back it up.