I-phone : You-cardboard
You think the future of mobile phones is the all in one i-phone? Well seems there’s a California company that thinks a painlessly disposable, super lo-cost cell-phone made of cardboard is the future. While with the I-phone you’re tied to AT&T, with the cardboard phone you’re –sort of- free, or at least you don’t have to pay one of those horrendous penalties if you decide to change companies. Minutes are charged from a pre-paid card, no matter what network is behind your calls. This is great news for tourists, or people who want to keep track of their cell-phone expenses on a business trip. But unfortunately in the US if you want a fancy phone you have to have it locked to a network. You can bet the idea of an unlocked i-phone makes AT&T tremble!
The European Wireless freedom:
What does a “locked” phone mean exactly? It means you are locked into a given system, and often times it feels like you made a deal with the devil. Europe has lived a free wireless life from the beginning, since the wise European Union forced all the network systems to unify from the start. So over there you can buy a cell-phone while in a network and move the device with you if you change your carrier. Really!!
For the US consumer the advantage has been that the cost of the phone itself has been greatly reduced, subsidized by the wireless carrier. So as soon as you get bored with one model you can move to another for a reasonable amount not even close to the real value of the device. That’s if you keep it in the same network. If not the Penalty Monster gets you and that, for some, it’s something that goes against all good old rules of capitalism.
California rules:
But wait there’s hope! A few days ago a preliminary California ruling stated that Sprint Nextel must pay consumers in California $18.2 million from a class-action lawsuit that challenged these “early termination fees,” and that the company must stop trying to collect the $54.7 million they are seeking from other customers who haven’t paid they early termination charges.
There’s a big possibility this ruling may extend to other states. Maybe very soon we’ll move into a network free wireless world in the US too. If that’s the case, it will very likely be the cheap cardboard cell-phones that turn out to be the big winners.