Chicago (IL) – There are lots of cellphone users who do not care how much the overall cost of their cellphone is and many often have a closer look when it is too late a 2-year contract has been signed. And if you talk about smartphones, looking too late can be expensive. The cost of a phone and contract can easily exceed $2000 and seemingly small differences between phone and plan prices can have a big impact on your bottom line. So, how expensive is the G1 and how does it compare against the iPhone. Let’s look.
It is easy to see that the price of the G1 handset and (temporary) 3G service has been placed strategically below the iPhone/AT&T combination, no question about it. Any combination of comparable T-Mobile voice and data plans will cost you less than what you pay with the iPhone. In the worst case scenario, the G1 saves you at least $360 over the period of a 2-year service contract, in a best-case scenario, the saving increases to $620 - enough to buy a 16 GB iPhone without a contract and have some pocket change left.
But there must be some catch to it, right? Yup, there is.
As it is the case with the iPhone, T-Mobile requires you to pick a data plan in addition to the voice plan for your G1. The carrier offers individual voice plans starting at $29.99 a month (300 minutes); two data options are available: A $25 per month plan that includes unlimited data and 400 text messages and a $35 per month plan with unlimited data and text messaging. T-Mobile's 3G network will be available in 23 metropolitan areas by October 22 (check out T-Mobile's coverage map to see if there is 3G coverage in your area). For comparison, AT&T's 3G network is now available in 320 markets. If there is no 3G coverage in your area, you can still use G1 on a slower EDGE network that should be ok for instant messaging, checking email, sending messages with light attachments, and text/MMS messaging. Of course, you can always use the built-in Wi-Fi radio to connect G1 to Wi-Fi hotspots as well.
T-Mobile's significantly smaller 3G coverage limits G1's appeal to users in a few metropolitan areas. And don't forget about the fine print in T-Mobile's "unlimited" data usage policy that limits your 3G bandwidth for G1 customers to 1 GB per month. Once your exceeded this limit, you will still be able to use data but the throughput will drop down to 50 kb/s, which is less than what is offered by $10/month dial-up Internet services today.
The cheapest G1 plan vs. the iPhone
The cheapest G1 service is combination of the $29.99 Individual Basic voice plan and $25 data plan. The combination is $15 cheaper than the entry-level $69.99 AT&T Nation 450 plan for the iPhone. The G1 entry-level service offers 300 minutes, 400 text messages and unlimited weekend minutes, an option available to iPhone customers only in more expensive Family Talk plans. AT&T tops T-Mobile plan with unlimited mobile to mobile calls and 150 minutes more (450 in total) included with the plan.
So far, the entry-level G1 service is $15 per month cheaper than the iPhone service but it is 150 minutes short per month, does not include rollover minutes and does not include mobile to mobile calls. It does, however, include unlimited weekends, unlike the iPhone plan. The $15 a month difference translates into $360 saving over the lifetime of a 2-year contract.
There is one more variable to the comparison: There are 400 messages included, while the iPhone plan does not come with messages. At AT&T, you will have to purchase a 200-message package for $5 per month, lifting the G1 advantage to $480 per year. 1500 messages are priced at 15 per month and unlimited messaging at $20 per month (costing you $480 over 2 years).
T-Mobile also offers unlimited messaging for $10 extra per month. If you choose unlimited text messaging, the G1 will be $620 cheaper over the 2-year period. Increase the T-Mobile minutes to 600 minutes per month and you will still save $500.
Read on the next page: G1 and iPhone plans on a similar level, what you will pay