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.

Crowds gather at Bay Area Apple stores in anticipation of new iPad's release

 

Before the sun could warm up a rainy Bay Area on Tuesday morning, Apple(AAPL) fans lined up outside the Cupertino company's retail stores for the debut of the newest iteration of the iPad tablet computer, joining employees in cheers and coffee until the doors opened at 8 a.m.

At Valley Fair mall in Santa Clara, about 60 people slept overnight outside the Apple Store in anticipation of buying the new iPad, and another 100 had gathered in a secondary line in the parking structure by 7 a.m.

First in line inside the mall was Jose Cuevas, 29, a mechanic for the city of Sunnyvale's recycling operations, who said it is the third Apple device launch he's attended.

Donning an "Hecho in Mexico" T-shirt and jeans, Cuevas got in line at 10:30 a.m. Thursday with a folding chair, bottled water, a small cooler and a backpack with his iPad 2 and several other Apple devices. Mall security told him he had to move along at one point Thursday because he was not "a mall patron," so Cuevas said he "went and bought a coffee, which made me a patron, so they let me stay."

Cuevas brought a sleeping bag, but said he didn't get much sleep Thursday night because there was a lot of clapping and commotion, which his ear plugs couldn't drown out.

He didn't regret the decision, however.

"I have all the iPods, iPads and iPhones they've released. The only thing I don't have is the iPhone 4S," Cuevas said. "I love how easy and revolutionary these products are. I first realized it when I saw a friend using sign language and reading lips by using the front-facing camera and Facetime. I thought this was amazing and I wanted to be a part of it."

Cuevas planned to buy a white, 64 gigabyte, 4G LTE-capable iPad, which he had figured out beforehand would cost $906.48 with tax.

About 60 young, blue-shirted employees served coffee and water to those waiting in line and whipped them into a frenzy at certain points before gathering inside the store for a frenetic prelaunch rally. A crew of about a dozen employees of the Microsoft Store had their own pep rally, but their size and enthusiasm was dwarfed by their neighbors thirty feet away.

Emma Harris, 56, a small-business owner from Morgan Hill, waited in line anxiously at Valley Fair as the doors were preparing to open. She said she has been to every Apple launch so far at Valley Fair, three for iPads and three for iPhones.

"It's having it before anyone else has it, because you can shove it in their face and say 'Look what I've got,'" she said of her motivation.

She passed the evening comfortably sleeping on the floor in advance of buying two 64GB iPads and one 16GB for her, her daughter and her brother.

"If you're tired, you can sleep anywhere," she said.

The store opened at 8 a.m., and customers were welcomed by two lines of screaming employees. The first customers came back outside with their prized purchases about ten minutes later.

Harris emerged with her new 64GB 4G-capable iPad, for which she paid $829 plus tax.

"It feels wonderful. After all, it's Apple and I've got the newest one on the block"

Kelvin Pham came out clutching his new iPad close to his chest soon after. The 22-year-old tutor from San Jose said he had gotten in line at 5 p.m. on Thursday.

"I wanted to be the first to get the new iPad. I'm fascinated with everything Apple does. I was disappointed that this one doesn't have Siri, but I'll settle for voice dictation," he said as he waited for the doors to open.

When he emerged with a 32GB, Wi-Fi-only model, he said "It feels wonderful. I can't wait to use it."

Exactly 39 minutes after being the first person allowed in the Apple Store following a 22-hour wait, Jose Cuevas walked out with his new prized possession.

"This is my 21st Apple product, and it still feels awesome." Cuevas said before heading directly to Great Mall to get an application of Ghost Armor on his new iPad to protect it.

As he walked away, Cuevas turned and said, "I'll be back for the iPhone 5, hopefully in June, and I'll be first in line for that one, too."

At the newest Bay Area Apple Store on 4th Street in Berkeley, a smaller crowd of about three dozen people waited in rain gear at 7 a.m., many with camping chairs, for the store to open at 8 a.m. Apple Store employees dished out coffee from a cart and chatted with everyone, sharing news that the crowd in Emeryville was reportedly much larger.

Two lines led from the closed door of the Apple store, one for picking up pre-orders and one for purchasing an iPad. A 21-year-old UC Berkeley senior, who would only identify himself as Mike M., was the only customer waiting in the pre-order line.

He has purchased all iterations of the iPad, he said, and sold his 16GB Wi-Fi-only iPad 2 for $350 to a friend before arriving at the Apple store at 6 a.m. Friday morning.

He said that he always buys the newest iPad because "they're always better. I like new stuff."

The wait was much easier this time, he said. Last time, he showed up at 6 a.m. as well, but the iPad 2 didn't go on sale until 5 p.m., creating an 11-hour wait. Friday, he would get his hands on his new iPad only two hours after arriving.

This iPad's most important feature for him is the retina display, the new, high-resolution screen that Apple has been heavily promoting.

"I do all of my school reading on it. I use it for highlighting and note-taking. The easier to read, the better," he said.

Matthew Brueckmann, an 18-year-old UC Berkeley freshman who was first in the other line, is an iPad virgin who was planning to buy a 32GB Wi-Fi-only version because "Wi-Fi is everywhere in Berkeley."

He said he only became fascinated with technology in the last year and a half, but agreed with his first-in-line partner that the retina display was the big draw. "It's better than anything you can imagine on an HD TV," he said.

However, he is not as intent on using the iPad for educational purposes as Mike M. "Maybe I'll find those intentions eventually," he said, while laughing.

Samsung Galaxy S WiFi 3.6 hands-on

 



If you were paying very close attention during Samsung's IFA announcements last year, you may have caught wind of a 3.6-inch PMP, fittingly called the Galaxy S WiFi 3.6. Now, Samsung has confirmed that this elusive entry-level Gingerbread handheld will finally be making its way to North America, with a 3.6-inch 800 x 480-pixel display and 1GHz Hummingbird processor in tow. There's no question that this isn't going to be a must-have gadget for power users, but for children and those new to Android or portable media players, the 3.6 will suit just fine. It's still a capable device, though on a more modest scale than pricier models -- there's a rear-facing 2-megapixel camera with a VGA snapper up front, a 1500mAh removable battery, a microSD slot for memory expansion, micro-USB and headphone ports on the bottom, and a power button and volume rocker on the side.

We had a chance to go hands-on with the 3.6 ahead of its U.S. launch during a visit to Samsung HQ in South Korea. The first thing we noticed is its size -- the compact design and light weight make single-handed operation quite feasible, even for those with smaller hands. The relatively high-res display (given the size) is of the LCD variety, as with other Galaxy Players, though with the same amount of screen real estate as larger devices, you should have no problem using the PMP for occasional email and basic web-browsing. Surprisingly, we also didn't have any issue using the keyboard, even in portrait mode with fairly stocky fingers. Navigation was noticeably sluggish compared to higher-end Samsung Galaxy devices, but not out of the ordinary for a mid-tier gadget. We wouldn't necessarily recommend purchasing the Galaxy S WiFi 3.6 if your everyday device has a large, gorgeous AMOLED display and plenty of processing power under the hood, but if you're looking for a PMP to compliment your prepaid feature phone, this budget offering should fit the bill. We're still awaiting confirmation of U.S. pricing and availability, though it wouldn't be unreasonable to expect it to land within the $150-200 range. Jump past the break for our video hands-on.

Yahoo sues Facebook over 10 patents

Yahoo is accusing Facebook of copying a range of technologies that the flagging search company invented, in a lawsuit that alleges the social media giant infringes 10 patents.

"Facebook's entire social network model, which allows users to create profiles for and connect with, among other things, persons and businesses, is based on Yahoo's patented social networking technology," Yahoo wrote in the lawsuit filed Monday in the U.S. District Court for the Northern District of California.

Yahoo accuses Facebook of infringing patents covering technologies related to advertising, privacy, site customization, social networking and integrated communications in social networking.

The suit describes several Facebook features that Yahoo alleges use its technology. Facebook's News Feed, the primary way of viewing friends' activity, infringes Yahoo's customization patents, according to Yahoo. The way Facebook handles privacy infringes Yahoo patents related to privacy, it said.

The format of many ads, such as Facebook's Premium Video Comment Ads, are based on Yahoo inventions, according to Yahoo. And the way Facebook displays and arranges ads and combats click fraud using the pay-per-click model infringe Yahoo patents, it said.

Yahoo didn't say if it had offered to license the technologies to Facebook, though reports last month suggested that Yahoo threatened the social networking site with legal action if it didn't make a deal.

In a statement Monday, Facebook said it was surprised by the move.

"We're disappointed that Yahoo, a longtime business partner of Facebook and a company that has substantially benefited from its association with Facebook, has decided to resort to litigation. Once again, we learned of Yahoo's decision simultaneously with the media. We will defend ourselves vigorously against these puzzling actions," it said.

It's likely no coincidence that Yahoo filed the suit now, just before Facebook is set to go public. "I think the timing coincides with the IPO and they're going to try to use the IPO as a source of pressure to get them to settle rather than litigate," said Greg Sterling, an analyst with Sterling Market Intelligence.

The strategy echoes Yahoo's decision to sue Google just before that company filed for its IPO. Yahoo sued Google for allegedly infringing patents controlled by Yahoo subsidiary Overture. Onlookers thought Google settled that dispute so that it wasn't involved in any potentially costly legal action when it went public.

In the suit against Facebook, Yahoo argues that simple back payment of royalties won't suffice.

"Yahoo is harmed by Facebook's use of Yahoo's patented technologies in a way that cannot be compensated for by payment of royalty alone," Yahoo's lawyers wrote. "Facebook's use of Yahoo's patented technologies has increased Facebook's revenue and market share because it does not have to recover the cost or time involved in the development of the technology."