Sunday, November 24, 2013

From Verizon to T-Mobile

I've been on the Verizon network for years and have really enjoyed the benefits of its coverage and high data speeds. I spent about a year on AT&T and was satisfied with their service but when the opportunity to switch back to Verizon came up I jumped on it. In my opinion I didn't think there was anything better out there, and I was willing to pay the premium to be a part of the Big Red club.

Enter T-Mobile. On July 10th, the bright pink carrier announced that it would become the nation's first "Un-carrier" at an even in New York City. T-Mobile announced that they would be doing away with lengthy, two-year contracts and feature low-cost, month-to-month service plans on their ever-expanding LTE network. In addition to this, the company announced their "JUMP" program, which allows their customers to upgrade to a new device up to two times a year, instead of once every two years. This is a significant change and welcomed news for early adopters such as myself. Sound too good to be true? There are, of course, some caveats to Pink's new plans and services.

New devices are no longer subsidized. Under the regular contract regime of other carries, new phones are heavily subsidized by the carries in exchange for locking you into a two-year contract. Since T-Mobile no longer offers contracts, they no longer offer subsidies. The means customers will need to either buy the phone outright or put some money down on the device and then pay monthly installments until the phone is paid off. Take the new iPhone 5s for example. The 16 GB model at full-retail price is $649. That's a nice chunk of change to shell out all at once, especially for those used to only paying the $199 subsidized price for signing on for another two year contract. With T-Mobile, customers now pay a downpayment of $149 and then pay an additional $20.83 tacked onto their bill for 24 months. There is no interest with paying off the device like this, and the total cost ends up to be the same whether you decide to buy the phone outright or pay it off in installments.

At first glance, this new "Un-carrier" proposition didn't seem like that good of deal. I wasn't impressed when I first heard about it since I don't really care too much about being locked into a contract because I know I'm always going to need a cell phone. And the thought of having to pay off a new phone over several months didn't sit well with me either. I somewhat dismissed T-Mobile as a viable carrier until I actually sat down and did the math.

I have been paying about $165 per month to Verizon, and that amount just recently increased to about $175 since I added my Retina iPad mini to my plan. That's a painful amount to pay every month so I started poking around on T-Mobile's site to see how their plans compared. I was surprised to find out that I could essentially get the same services that I was paying for at Verizon for $100 per month with T-Mobile. That T-Mobile plan would include 2.5 GB of data each for both of me and my wife's line, along with unlimited talk and text. My wife and I are sharing 4 GB between our two lines on Verizon so T-Mobile actually offers more data per device for less money. Along with the $100 T-Mobile plan we would need to get my wife a new phone since her iPhone 5 wouldn't be fully functional on T-Mobile's network. The cost of getting her a new iPhone 5s would add just $20.83 to our plan for an overall plan total of $120.83. Needless to say, this is a significant savings when compared to what I was paying to Big Red.

After crunching these numbers, I quickly came to the conclusion that I should switch carriers. Then I realized I was forgetting one very important part of this whole equation: Early termination fees. Verizon charges some hefty ETFs for breaking a contract before the term has run it's course. Between our two lines we would end up paying $520 in ETFs. When I found that out I thought this switch might not make financial sense until our contract with Verizon was finished. Then I realized I could sell my wife's iPhone 5 on Amazon for around $400 to help lessen the blow of the ETFs. This would effectively take the costs of switching carriers to only about $120. Saving about $50 per month with T-Mobile would easily pay off that deficit in just a few months. There are a few more costs of switching, like the down payment I'd have to pay for the new 5s, but even with all the extra fees associated with leaving Verizon, T-Mobile still won out as the best value and would save me the most money in the long run. Jeff Benjamin over at iDownloadblog breaks down the math in a bit more detail in a recent post that I'd encourage everyone to read if you want to get some more detail on how much the switch might actually cost.

I've now been on T-Mobile for about a week and have been satisfied thus far. I'm lucky enough to live in a big enough city where T-Mobile has a strong LTE presence that I don't notice much different in coverage. And the way I see it, T-Mobile is only going to get better from here. I believe they are making the necessary investments to increase their coverage to be able to go head to head with AT&T and Verizon. T-Mobile's offering is very exciting and I think we'll start to see more and more people making the switch as they learn about all the benefits the carrier has to offer. Only time will tell how this experiment will work out for me, but I'm happy so far and I'm optimistic that my relationship with my new pink friend will last for the foreseeable future.

Saturday, November 23, 2013

From Air to mini - My First-World Problem

It's been a very long time since I've written anything on this blog so I thought I would share some thoughts about the latest consumer debacle I found myself in when Apple launched two new iPads this month.

When the iPad Air and iPad mini with Retina Display were announced at the end of October, I thought it was a no brainier as to which iPad I would be purchasing. At the time of the announcement I was using a 4th generation, full-sized iPad. The iPad mini was my tablet of choice before that but I found myself thinking that I needed some extra screen real estate so I wanted to go back to the full 9.7" screen. As many have realized, I found the 4th gen iPad to be way too heavy to comfortably handle with one hand. I was so used to using the mini and the full-sized tablet seemed like a clunky device from yesteryear in comparison. Sure, the Retina Display screen was beautiful and having the extra real estate was nice, but I feel like I didn't want to do anything with the full-sized iPad except for sit on a couch. I didn't feel like I could take it anywhere else since it was so uncomfortable to hold.

On announcement day I was stoked to get my hands on an iPad Air on November 1st. The device seemed to meet all of my needs: lightweight, with all the screen real estate I could ever want or need while still being light enough to take with me on the go. I went to bed at 10:00 PM on Halloween and woke up at 1:00 AM mountain time on the 1st and ordered my 32 GB WiFi iPad Air for pick up later that morning. I was thrilled that I didn't have to wait up all night outside in the cold at the Apple Store. The personal pickup option made this one of the easiest devices to pick up on launch day that I've purchased. I also picked up one of the new blue Smart Covers. I'm a fan of the Smart Cover, but it typically spends a lot of time detached from the iPad and sits on my desk. It only goes on when I'm out and about with my iPad in hand.

My initial impressions of the iPad Air were very positive. It is considerably lighter than the previous generation and also had a noticeable performance boost. After a few days of having the WiFi model, I decided that I wanted to get a cellular version since T-Mobile promoting 200 free megabytes of data each month to new iPad owners. I'm on WiFi most of the day but it's nice to have the additional megabytes for emergency internet access (if one can indeed call needing the internet an emergency). I returned the WiFi model and purchased the 32 GB Verizon model. Since the Air isn't locked to a carrier, I went to a T-Mobile store later that day and picked up a nano SIM starter kit for ten bucks and was off and rolling with two SIM cards for two different carriers. I planned to cancel my Verizon service after the first month and just continue with the 200 MB on T-Mobile when needed. With this setup, I felt that I could never want anything else.

I was wrong. I had spent a lot of time playing with the iPad Air and sadly found it to still be too heavy. I know, one pound is not heavy and I should stop complaining. Apple created this beautiful device and packed a ton of power into it and did so with very limited space. I'm amazed at what they were able to accomplish. However, the large screen size made the device a bit top heavy when typing on it in portrait mode. The length of the screen makes it a bit cumbersome, especially when using it on the go. As time passed, I couldn't see myself using the Air away from the house since it was most comfortable to use while sitting on the couch.

All the while I was using the Air, I was constantly checking blogs and Apple's site for any news of the release of the iPad mini with Retina Display. I tried to convince myself that I didn't want another mini but I just couldn't get the thought of it out of my head. Suddenly, a rumor was announced on November 11th that the Retina mini would go on sale the next day. Some scoffed at the rumors, but later that night Apple's online store went down, which typically signals the launch of a new device. I didn't care enough to stay up all night to see if the mini would indeed launch so I went to bed, still pretending that I was happy with the iPad Air.

On the morning of the 12th I checked Apple's store, just for kicks, and low and behold, there was the iPad mini with Retina Display. Available for purchase for delivery only. No in-store pickup options were available at that time. A few days went by and I kept watch on Store.Apple.com to see if the mini would ever be available for pickup at my local store. I became a bit obsessed, checking the site once every few hours. While doing one of my evening checks, I noticed that the mini was available at my store for pickup that same day. Without much hesitation, I bought it and went to the Apple Store the next day since the store was only open for a few more hours when I ordered it.

The pickup process was very easy. I was in and out in under ten minutes. I unboxed my new, 32 GB iPad mini with Retina Display for Verizon and it instantly felt comfortable. The first generation mini was a delight to use and I favored it over the full-sized iPads, even with it's inferior screen and slower processor. For how much I favored and was impressed with the first gen mini, I felt exponentially more impressed with the Retina mini. Handling the iPad Air still feels clunky in comparison and requires me to move my hands around the device too much to reach all parts of the screen. The Retina Display mini fits nice in my hand and allows me to be quick when navigating around the screen. The text is sharp and the mini is still just as fast and powerful as the iPad Air.

I kept both the iPad Air and iPad mini with Retina Display on hand for a day or so to really take some time to compare the two to make a final decision on which one I would keep. The Air lost that battle and was subsequently returned to the Apple Store. I had returned so many iPads to the Apple Store at this point that I became embarrassed to even show my face in there again to return yet another device. But I figured that if I'm going to be spending this much on a device, I wanted to test and try just about everything I could to make sure I was completely satisfied.

As I've written this post, I realize that this decision is fairly ridiculous and is very much a first-world problem. I feel very fortunate that this was the biggest decision I had to make this month. I am happy with my decision to stick with the iPad mini with Retina Display and I don't see myself buying a full-size iPad again in the future. To those who have had a mini in the past, the upgrade to the Retina mini is an obvious choice. For those who are buying an iPad for the first time or are replacing an older iPad, the decision gets more difficult. Both devices are great and get the job done, but anyone who values a device that is easy to use on the go and has all the power needed for just about any task, the Retina mini is the clear winner. I love it, it's the perfect device for my needs and I look forward to using it from here on out. That is until Apple releases the next generation.