#212 - Cell phones & the Internet

Sprint is the only provider left providing unlimited Internet plans for Cell phone users.  The two big boys, AT&T and Verizon have moved to plans that limit the amount of Internet to a download amount.  Usually the download limit is measured in Gigabytes(GB). 

So how much do you use?  Right now I have an unlimited grandfathered plan from Verizion.  Looking at my usage over the last year sees I've never gone over 0.5 GB in any given month.  I don't stream anything on my phone since the screen is so small.  I look up the weather, a sports score and keep track of the stock market.  The new limit from both AT&T and Verizon is 2GB download per month for $30.00 (the same cost as the unlimited plan I have now).  That shouldn't be a problem for me if I keep a small screen phone.  However if you stream a Netflix movie you will use 1GB per hour of stream.   One movie essentially wipes out your month. 

Now not many people are streaming movies on their phones.  However these $30 plans are the same that the phone companies are selling with tablet pcs.  A tablet user is much more likely to use lots of data download then a phone.  Verizion understands this and has begun bundling phone & tablet plans.  A 2GB plan shared between a phone & tablet will also not last long.    Verizon also has 5GB & 10GB plans for $50 and $80 per month respectfully.  Those are the plans that Verizon wants you to buy. 

I looked closely at my PCSS Verizon cell phone bill this past month and it was an incredible $142.00.  That includes 2 phones, 700 minutes, 1 unlimited Internet data package and unlimited texts.  Who would have thought 5 years ago that we would spend that much on cell phones?  Close scrutiny of the bill finds a very confusing listing of charges.  I believe the phone companies intentionally make the bills confusing to get away with extra charges.  Yes you signed the 2 year agreement, but it should be easier to understand your bill. 

If you have a young person in your life, you better have unlimited text messaging.  Its the ONLY way they communicate.  All around you see young people texting their lives on their phones.  Young girls in particular are very adept at putting every angst filled moment into multiple texts.  Heaven forbid if they don't have unlimited texting.  There is another $30 per month.  The model for phone companies to make money is very good.  Also a reason I own Verizon stock.