Cell Plan Extra Charges: Why and What You Can Do

Your cell-phone plan supposedly costs $39.99 a month, say, yet your cell-phone bill usually runs to $52 or so. Here's a quick rundown of the reasons and some remedies.

Many of the major extras are beyond your control, at least as a subscriber. The biggest bite is from state and local sales taxes. Your telecom bills are typically taxed by those jurisdictions at the same rate as other goods and services, and those rates, to say the least, show no signs of going down. (There used to be a 3-percent federal excise tax—in place since 1898 to pay for the Spanish-American war—but it was repealed in 2005.) There's also a state fee for e-911, the location-based technology that helps emergency responders find you when you dial 911 from your cell phone; you may also have to pay a separate 911 fee to your municipality for having access to those emergency responders.

Carriers also tack an assortment of administrative and regulatory surcharges onto bills to defray the costs they incur when they interface with other networks in the course of providing service, as well as other incidentals. One such fee that's attracted attention lately is one, amounting to a dollar or two a month, that reflects the carriers passing along to consumers their contributions to what's known as the Universal Service Fund, which subsidizes phone carriers operating in remote or sparsely populated areas. With more than $7 billion now in the Fund, the Federal Communications Commission has just capped a portion of it. (If you have Adobe Acrobat Reader software installed, you can see the FCC's press release on the cap on Universal Service here.) But the cap's impact on consumer fees is unclear, since the Fund still requires replenishment to remain at its current level.

But some extras that are swelling your bills are well within your control. Here's a rundown of some, and how to quell them:

Wireless data relief: Spelled W-i-M-a-x?

Net access over cell networks is still slower than with a home broadband connection, even on faster third-generation (3G) cellular data networks like EV-DO (Verizon and Sprint Nextel) and HSDPA (AT&T and T-Mobile). And those speedier networks aren't yet available in all metro centers, let alone in many rural areas. Laptop owners and those with advanced cell phones like the iPhone can get their broadband via Wi-Fi hotspots, but those are highly local, and so don’t really offer broadband access on the go.

Hoping to capitalize on these shortcomings, this week a coalition led by Sprint, Nextel, and Intel announced support for a more potent flavor of Wi-Fi called mobile WiMax. Based on the IEEE 802.16e wireless standard, mobile WiMax offers data speeds comparable to Wi-Fi (that is, about 5 to 10 times faster than today's cell data networks). WiMax also offers much greater range; indeed, some even think WiMax might one day replace cable or DSL as the home broadband access of choice.

But before you start salivating too much for a WiMax fix, consider the following issues that may yet trip up this promising technology—which, by they way, has been simmering in the wireless community for about a decade.

AT&T to pro-rate early termination fees for cell-phone contracts

In another sign of the growing consumer power in the cell phone marketplace that we reported last January, AT&T has joined Verizon in pro-rating its $175 early termination fee, a major thorn in the side of respondents to our latest survey of cellular service providers (available to subscribers).

But three other big wireless service providers, Alltel, T-Mobile, and Sprint, have yet to deliver on their promises to do likewise this year. Those providers still ding you for up to $200 if you cancel your cell phone contract before its full term is up. Consumer advocates including Consumers Union, Consumer Reports' parent organization, consider such flat fees to be unjustified, since consumers continually repay the cost of a low-priced or "free" cell phone with a portion of their bill each month.

AT&T's plan is similar to Verizon's. For both, there is no cancellation fee for the 30-day trial period at the beginning of a new cell phone contract, during which new customers can quit the service if they're dissatisfied. Thereafter, the $175 fee on one- and two-year contracts is reduced by $5 for each month you stay with the service.

Two promising new non-iPhones

Cell phones with iPhone-like design are garnering most of the attention as manufacturers begin to roll out their 2008 models. But we're also impressed with some conventional handsets that are taking more original, if not subtler, steps toward better cell-phone design. Here are two of them:

LG enV2 by LG. The original enV, with its tiny, hard-to-see keypad didn't impress us much when it debuted a more than a year ago. But, based on an initial look, this second incarnation, available this month from Verizon for $130 with a 2-year contract, seems to have fixed the problem. For one thing, the keypad is wonderfully large—roomy enough to accommodate the widest thumbs. It's also noticeably thinner and smaller, measuring just 4 in. x 2.13 in.  x 0.65 in. (For a closer look at the enV2, click on the image at right and the one immediate below.)

Like the old enV, it opens up like an eye-glass case to reveal a 2.4-in. screen, stereo speakers, and full QWERTY keyboard to satisfy heavy texters and multimedia addicts (though the keys did appear to be a tad more narrow than those on the original). Other niceties include support for GPS navigation and stereo Bluetooth headsets.

(Complete details of the original LG enV are found in our Ratings of cell phones, both available to ConsumerReports.org subscribers.)

Motorola MOTO Z9. GPS navigation, while flourishing on the Sprint and Verizon networks, has not been an option for most AT&T customers, save for a select group of smart-phone users (that doesn't even include owners of the iPhone, which lacks true GPS). That changes with the Motorola MOTO Z9, available now from AT&T for $250 with a 2-year contract. (Click on the image at right for a closer look.)

This GPS-enabled phone, which is compatible with AT&T's 3G data network, has a large, 2.4-in display that promises comfortable viewing of real-time, turn-by-turn directions offered by the extra-cost service. The Z9 is also compatible with AT&T's Video Share, which lets you stream live, one-way video of your special moments to another compatible phone. You can also download content directly music from eMusic and sideload tunes from Napster To Go. Other features include support for microSD cards up to 8GB and stereo Bluetooth headsets.

—Mike Gikas

Send in the iClones

Last week at CTIA 2008, the biggest tradeshow in the U.S. devoted to cell phones and other things wireless, key manufacturers Samsung, LG, and Sony Ericsson didn't even try to deny that the upcoming models they eagerly trotted before us bore a strong resemblance to the iPhone.

The newcomers unabashedly borrowed from Apple's hit multimedia smartphone in looks and ergonomic design. Like the iPhone, the Samsung Instinct, the Sony Ericsson X1 (click on the image at right for a closer look), and the LG Vu have a large, dark touch screen (about 3-in. measured diagonally) framed by a shiny metallic edge. Their interfaces, though distinct, all provide a quick way to jump in and out of their many functions, from phone calling and text messaging to media playback and Web browsing. And like the iPhone, if you select the wrong application icon, pushing a home key brings you right back to the main menu.

Pending our thorough tests of these pending pretenders, we can't say how well they stack up against their inspiration. But used briefly on the tradeshow floor, their performances seemed quite impressive, and some even add useful features the iPhone lacks.  Here are my first impressions:

Cell-phone spam: How to curb it

Cell-phone spam still trails computer spam, with the typical cell-phone user receiving at most a few spam text messages per year rather than the thousands that may bombard their computer-based e-mail accounts. But in some ways, cell spam is more annoying. It can cause your phone to ring or vibrate at inopportune times and possibly cost you money—typically 10 to 25 cents per message if you don't have a text-messaging plan.

Since 2005, the CAN-SPAM Act (Controlling the Assault on Non-Solicited Pornography and Marketing) has prohibited commercial e-mail and text messages to be sent to cell phones without "express prior authorization." Unfortunately, the law leaves commercial entities lots of loopholes. For example, it doesn't prevent your carrier or its partners from sending you upgrade offers or account notices. Also, non-commercial organizations such as charities and political campaigns can shoot you all the messages they want on your dime.

Sprint’s unlimited talk—and data—is cheaper

Talkative cell phone users got a buzz last month when major carriers, Verizon, AT&T, and T-Mobile began offering $99.99 unlimited calling plans. Now Sprint has also announced its own unlimited plans.

Like its competition, Sprint's "Simply Everything" plan offers unlimited voice calling, free nationwide long distance, and no domestic roaming charges. But for the same $99.99 per month, subscribers also get unlimited text/picture/video messaging, mobile Internet, and walkie-talkie style push-to-talk service.

That's a better deal than, for example, Verizon's Unlimited plans, which charge $99.99 for voice, $119.99 for voice and messaging, and $139.99 for voice, messaging, and mobile Internet.

However, as we previously advised, before getting a pricey unlimited plan you should first consider less costly somewhat unlimited plans.

In the case of Sprint, its new "Everything 900" anytime voice minute plan also comes with unlimited messaging and Internet (as well as unlimited voice nights and weekends and mobile-to-mobile) for only $89.99 per month. If you can live with 900 daytime voice minutes per month—still a hefty 40 minutes or so per weekday, after all—you'll save $120 annually over the $99.99 "Simply Everything" plan or up to $600 per year over competing carrier unlimited plans.

Mostly talk: New unlimited cell plans won't pay for most

Verizon, AT&T, and T-Mobile are now offering unlimited talk plans for $99.99 per month. While the plans offer convenience and 'peace of mind,' few subscribers, except heavy talkers, are likely to save with these all-you-can-talk offerings.

That's because with a little consumer planning effort and discipline consumers can maximize Verizon's and AT&T's national, no-roaming-fee, no-long-distance-charge plans that cost $60 a month. Those plans ostensibly sell you 900 anytime minutes per month, but both also give you unlimited nights and weekends. With Verizon's "national IN calling" feature, there's also no charge for calls anytime of the day to some 64 million other Verizon Wireless customers. AT&T's version of this is "mobile-to-mobile" minutes, and offers free calls anytime to AT&T's more than 70 million customers.

It's pretty much the same deal as AT&T's and Verizon's with Alltel's National Freedom 900 plan, except that that carrier's "My Circle" feature also lets you make unlimited free anytime calls to 10 wireless or landline numbers on any network. T-Mobile's myFaves 1000 plan provides 1,000 whenever minutes, free roaming and long-distance and unlimited nights and weekends; but instead of unlimited minutes to other phones on the T-Mobile network, it gives unlimited "myFaves" minutes to only 5 designated numbers on any network.

The Other Digital Transition

Most of the news coverage regarding the "digital transition" has been about television, which is switching to all-digital broadcasts on February 17, 2009. But some cell-phone users and other wireless subscribers face another type of digital transition—and in just a few days. On February 18, an FCC law requiring cellular carriers to provide analog service to subscribers and roamers expires. That means some older analog phones, alarm systems, and OnStar emergency services will no longer work.

Unlike TV broadcasters, cellular carriers aren't being forced to drop analog service. Rather, they're now allowed to discontinue analog service if they already blanket their cellular geographic service areas (CGSAs) with digital coverage. You won't be blindsided by the change. Carriers have to give their analog customers adequate warning. Here's the 411 on who's affected, and what they can do about it:

Cell-phone users. The expired law primarily affects some analog customers of Verizon, Alltel, AT&T, US Cellular, and Dobson (and other companies that market their services as "Cellular One"). Fortunately, it's only customers who have older, analog-only phones—not the newer digital phones with analog backup. You can tell your phone is analog if it's more than 5 years old, or if it doesn't have the ability to access the Web or handle text messages. Customers of SprintNextel and T-Mobile, whose networks are already entirely digital, should not be affected by the change. Rural subscribers to regional analog carriers shouldn't be inconvenienced either, though their phones may no longer be able to roam in areas serviced by digital-network carriers.

LG Voyager Cell Phone: First impressions

If a new cell phone is on your holiday wish list, wireless service providers and phone makers are more than happy to flood you with dozens of new models that offer a slew of new features and other goodies.

To be sure, one of the hottest wireless phones for holiday shoppers is Apple's iPhone. But if you're a Verizon customer and are hesitant to switch over to the AT&T service, there's good news. The wireless carrier now offers the LG Voyager, a cell phone that closely mimics the iPhone's touch-screen and other capabilities. (Click on the image at right for a closer look.)

On ConsumerReports.org, we've taken a closer look at this iPhone competitor as well as Verizon's other heavily-promoted phones, the LG Venus and Samsung Juke. Check out our free report all three phones.

The report also has an online video which shows the LG Voyager in action. Click on the player below or go to our most recent cell phones Ratings report on ConsumerReports.org to see the video. (You must have Macromedia Flash software installed to watch our free online videos.)

Amazon Kindle: First Impressions

In the shifting world of electronics, no one's staying neatly in their allotted corner these days. Witness the annual Consumer Electronics Show. Once strictly a hardware showcase, it's promoting the participation of movie studios and TV networks in this January's event.

So it's almost unsurprising that the newest e-book reader, the Amazon Kindle (click on images for a closer look), bears the name of a retailer rather than an equipment manufacturer. The branding actually makes sense, since a seamless link between the Kindle and Amazon.com is the most interesting aspect of the device, which Amazon began selling last week for $399. I tried it out over the Thanksgiving weekend.

The Kindle comes preloaded with your Amazon account information and with software that links, automatically and at no ongoing cost, to Sprint's high-speed cellphone data network. If all goes well, Amazon says, you simply turn it on and start browsing and ordering. Even when your account doesn't appear, as mine didn't, signing on took only seconds.

[Nov. 28, 2007 Update: We corrected the reference to the network Kindle uses; as a reader noted, it's Sprint's data network not its cellphone network. —Ed.]

(While I had no problems with the service when using my Kindle these past few days, Sprint was among the worst providers of cell phone service in our survey of Consumer Reports readers in 20 cities. If you're a ConsumerReports.org subscriber, you can check our Ratings of cell service providers to see the details.)

Then I was off and "kindling" (yes, Amazon really does "verb" the name of the device), using the Kindle's unique rolling wheel navigation device and next- and last-page bars on each side of the 6-inch screen. Orders bill seamlessly to your Amazon account—maybe too seamlessly, depending on your self-control; there isn’t even a checkout to slow you down. Downloading a book to the device took me less than a minute, as Amazon promises. There’s no ongoing monthly fee to use the Kindle.

The Kindle doesn't offer all of Amazon's features; there are no extras like author's videos or search capability. But it offers free sample chapters, which download in a matter of seconds. And it's more natural to read book pages on the Kindle than on a computer, where you must scroll through them using a cursor and read them on a screen that isn’t designed for prolonged reading.

In a fantasy world where books were read mostly on computers, the Kindle would be a must-buy. In the real world, where books remain stubbornly analog, using the device falls well short of the pleasures of holding and reading a book. The type, charcoal-colored on a light-gray background, lacks the contrast of typical book pages. The screen briefly turns black during page turns. And the display is monochrome only, and lacks the grayscale variation even to render, say, black and white photos as accurately as in print. (The Kindle shares the use of patented eInk technology with its main competitor, the Sony Reader, $299, which has been updated since we tested it last year on ConsumerReports.org.)

So is the Kindle worth $400 to you, or anyone on your gift list? An obvious pre-qualifier is a willingness to try new technology that's almost bound to drop in cost, improve in performance, or both in subsequent iterations. Then there's mobility; a book reader probably makes sense only if you often read on the move. Beyond that, here's my initial take on prime candidates for the Kindle:

Heavy hardcover buyers. It costs $9.99 to load a hardcover best-seller to the Kindle—an all-but-unbeatable price, in any format (most older titles cost more, though some venerable classics go for as little as a dollar or two). So, if you buy more than 40 hard-covers, you'll more than make up the cost of the device. But, the Kindle is also significantly smaller and lighter (at 10 ounces or so) than a single hardcover book (see image). And it holds up to 200 books, Amazon says, and so would free up some serious luggage space for a serious reader on a long trip.

News junkies. The Kindle offers subscriptions to 11 newspapers, including the New York Times and Wall Street Journal, and a number of magazines. And there's free access to a host of bookmarked websites, including those of BBC Radio, MSNBC, and ESPN.

Kindle critics have bashed the cost of the subscriptions—$5.99 to $13.99 a month for each newspaper, for example—when the publications are mostly available for free online. But the Kindle allows you to view news on a screen, albeit a black-and-white one, that's bigger than any smart phone and on a network that's faster than the sluggish AT&T network the iPhone uses. And there's no requirement to pay for a monthly high-speed data plan.

[Nov. 29, 2007 UPDATE: As a reader pointed out, some newspaper subscriptions are available to Kindle owners for $5.99 per month. —Ed.]

A caveat for the free sites: They're part of the "Basic Web" functionality, including a rudimentary browser, that Amazon lists under a link titled "Experimental." Translation: Web browsing, and access to the news sites, may not be a permanent feature of the Kindle, and so is a risky reason to buy one.

A final note on gifting: As of today, the Kindle is "temporarily sold out" on Amazon (the device’s only vendor, unsurprisingly).

We'll have more on the Kindle, probably next week on Consumer Reports' Electronics section, as our testing continues.

—Paul Reynolds

Share your telecom "bundling" experiences

These days it seems like everyone wants to provide you with Internet, telephone and cable TV service. Double- and triple-play packages that offer some or all of these services are being heavily promoted offered by cable and telephone  companies, as well as by satellite service providers such as DIRECTV and DISH Network. Verizon's high-profile entry into the market with its much-publicized FiOS fiber-based service has created yet one more choice for consumers to ponder.

Adding to the complexity is that individual providers frequently offer a variety of bundles, allowing you to increase your Internet surfing speeds, for example, or the number of channels included with the TV portion of your service, all, of course, at a higher price. Promotional pricing that ends in anywhere from 3 to 12 months can make difficult to find the amount you’ll ultimately pay.

Given all this, we’d like to find out whether you’ve ventured into the jungle of bundled choices. If so, how was the experience?

Among the questions we’re curious about:

• How easy (or difficult) was it to compare bundles within a provider and also to compare among providers?


• Did you try negotiating with the providers to see whether they’d sweeten their offers or extend promotional prices?


• Did you end up opting for a bundle or buying your services a la carte from different companies, and how satisfied are you with your choice?

Have you reviewed the choice you made, perhaps some months after the fact? If so, some additional questions:

• If you went with a bundle, are you saving money compared to the amount you were paying for individual services, even after the end of the promotional pricing?


• Were there any nagging gimmicks or gotchas that you didn’t discover until after you signed up?


• What do you like best about your provider, and what bothers you the most?


• Finally, do you have any horror stories or tips for other consumers?

Your input will help us create upcoming content on so-called telecom bundles.

Thanks.

How’s your cell-phone service?

It’s hard to love a cell phone company. In a survey by the Consumer Reports National Research Center, only 13 percent of readers told us they were completely satisfied with their current cell-phone service.

We know your relationship with your cell-phone provider might be soured by factors including pricing or other billing disputes, spotty coverage, contract gotchas, locked or finicky phones, early termination fees, surprise monthly minute overage charges, long lines and waits at the in-store customer service counter, problems when another cell phone company gobbles up yours in a merger, confusing monthly statements, and more.

We’re going to give our advice on managing your cell service in an upcoming report. But in the meantime, you can give us yours. Do you have cell-phone-company relationship problems? How have you solved them?

Share with us your experiences, your horror stories, and most important your solutions here on this thread as well as on this thread at HearUsNow.org, a consumer advocacy project of Consumers Union, publisher of Consumer Reports.

Please note: You'll need to submit at least a valid e-mail address in order to participate here. (Other contact information may be requested at HearUsNow.org.) Rest assured we won't share this contact info with anyone. But a reporter from Consumer Reports may use it to contact you if we want to include your story (and possibly your photograph) in our upcoming report. A producer from Consumer Reports TV, whose reports are syndicated on television news programs in 88 U.S. and Canadian cities, may also want to include you in a related CRTV news report.

-- Jeff Blyskal

The iPhone: Some issues to consider

With the initial clamor about Apple’s first phone now over, non-Apple-aficionados can ponder whether to pony up $499 or $599 for the device. As our tests wrap up, here’s what to consider if you’re still on the iFence about the iPhone:

• How important is phone performance? As we mentioned previously in our video review, the iPhone offers superb multimedia functionality via its unique touchscreen and integration with services like YouTube and Google Maps. But, as we've also said: As a phone, it’s only so-so in voice quality and AT&T’s service has some issues.


• Is your present phone under contract? If so, you’ll need to pay out the contract or pay its termination fee of up to $200. (If you have a contract with AT&T, the termination fee will be forgiven. Read Consumer Reports' recent report on the high costs for changing your cell service for other money saving tips.)


• Are you shopping for an iPod? The iPhone’s 4- or 8-GB iPod is the best MP3 player built into a phone that we’ve ever tested, and offers a new and appealing interface. However, we’d be surprised if new iPods with those features didn’t arrive later this year.


• Do you now text a lot on a keypad? The iPhone’s text-entry interface is fine, and easy enough to learn. But it’s very different from sending text messages on the QWERTY keyboard found on most smartphones. Speed texters on that type of keyboard may want to stick with it.


• Do you need PDA functions? The Palm Treos and most Blackberrys are better at these. With the iPhone, you can’t edit or create documents, nor can you enter or edit calendar appointments on the phone itself--you can do that only through iTunes on your computer.

[July 9, 2007 Update: As blog reader Shawn Duncan notes in this post's comments, we goofed on this. There is a way to create and edit new documents and calendar entries on the iPhone. --Ed.]

More next week from our continuing tests of the iPhone. But please add your own comments here and in the iPhone thread of our online discussion forums. (Our boards are free to read, but registration is required to post messages.)

--Mike Gikas

The iPhone Launch: The Countdown Begins

Now just a few hours from the its retail launch, Apple’s iPhone continues to engender the kind of blatant material lust we haven’t seen since Gollum’s pursuit of the Ring in the Lord of the Rings movies (“We wants it, we needs it. Must have the precious.”)

Since our own plan is to buy a number of iPhones immediately and work through the weekend performing a hands-on evaluation of the phone, in the interim we thought we’d recap what’s been already said by the four journalists who received evaluation units a few weeks ahead of the rest of us. (The policy of Consumers Union, the non-profit publisher of Consumer Reports, requires us to purchase the products we review).

The reviews by all four of the reporters--Walt Mossberg from the Wall Street Journal, the New York Times’ David Pogue, Ed Baig from USA Today and Newsweek’s Steven Levy--were predominantly positive. But all acknowledged some drawbacks, most notably the comparatively slow AT&T EDGE network. Many of their assessments echo issues we raised in our earlier coverage.

• Complete iPhone coverage in this blog
• Interactive: Inside the iPhone

The iPhone and AT&T Wireless: A match made in, well, not heaven?

While the iPhone itself might live up to its considerable hype--we’re still a few days shy of getting our hands on one--Apple’s exclusive deal with AT&T Wireless for cellular service could leave some users happy they can also use the phone to listen to music or watch YouTube clips.

That’s because for several years, AT&T Wireless--formerly known as Cingular--has been among the least satisfying service providers, according to Consumer Reports’ annual customer satisfaction surveys.

In fact, in our latest report, from January 2007, AT&T had  “middling to low” customer satisfaction, with static and busy circuits cited as widespread problems (as they’ve been in our previous surveys). Frequent service-related problems were compounded by the company’s relatively low marks for helpfulness in handling customer questions and complaints.

In addition, the iPhone will run on AT&T’s “2.5G” EDGE network, rather than one of the faster “3G” networks available from the major carriers, such as Verizon or Sprint’s EVDO, or even AT&T’s own UMTS/HSDPA network (Don’t worry about the acronyms. The upshot is that EDGE has much lower bandwidth than true 3G networks.). Reportedly, AT&T has been working to upgrade the Internet capabilities of some of its towers to ensure higher minimum data speeds than were originally reported.

And some journalists who received models of the phone in advance have said that AT&T’s  wireless service is a potential weak point. David Pogue of the New York Times' Technology section highlighted our survey findings while Walt Mossberg over at the Wall Street Journal's Personal Technology section has called it "a major drawback" for the sleek device.

(We expect to buy the iPhone on Friday--just like you would. After testing by our reporters and engineers, we'll report our findings here on the Blog as well as on ConsumerReports.org. In the meantime, check out our interactive guide to the iPhone.)

But the combination of slower network speeds and poor customer service might not bode well for early iPhone adopters (there are already rumors that a second-generation iPhone will be 3G-capable), especially since Apple’s deal with AT&T is a five-year exclusive. And AT&T’s just-announced service plans for the iPhone require a two-year commitment.

The good news is that the pricing plans, announced on Tuesday, appear to be competitive. Three versions will be offered, ranging from $60 to $100 per month, and there’s a one-time $36 activation fee. The basic $60 plan includes 450 minutes of voice time. An $80 step-up plan bumps voice time to 900 minutes.  The premium plan, priced at $100 a month, includes 1,350 minutes of talk time. All three include 200 text messages, unlimited data services, and “visual voicemail,” which lets you see the types of voicemail you’ve received and access them individually, rather than in the order in which they were received.

In addition, unused monthly minutes can be rolled over to the next month, and there are unlimited calls between mobile phones.

iPhone: Why you may not want to answer its call yet

With the iPhone’s long-anticipated debut just weeks away, the buzz that greeted its January announcement has risen to an ear-splitting roar. A Google search of the term “iPhone” turns up hundreds of articles that in one way or another predict the transformation of cell-phone life as we know it, beginning on June 29.

You can’t yet buy the iPhone, but you can already buy screen protectors, chargers, and other accessories     for it. (For example, see this press release on PR Newswire.) There are also at least 10 iPhone books in the works, such as “How to Do Everything with Your iPhone” (from publishers McGraw-Hill Osborne) and “iPhone for Dummies,”with publication dates as early as August.

All this for a phone that’s been actually held by, like, a dozen people, most of whom work for Apple, and that you can’t even pre-order it yet -- though some AT&T stores are taking names of would-be buyers for a waiting list. (In fact, our test folks have already pre-ordered five in that manner.)

True to Apple’s flair for high style, the iPhone may be the coolest-looking cell phone ever. And as we've previously noted, its specs -- including a 3.5-inch-wide color screen and WiFi connectivity -- are impressive.

But, as we also pointed out a short while after the iPhone’s MacWorld preview, several issues threaten to scuff this glistening Apple. These include a screen that might smudge, a data-network that’s slower than others, and the iPods’ track record for battery life.

Broadband termination fees: Check before you sign up

A new survey from our colleagues at Consumers Union, the nonprofit publisher of Consumer Reports, highlights the importance of checking for termination fees for broadband service, especially if you're signing up for DSL broadband from a phone company.

Published on HearUsNow.org, CU's website devoted to telecommunications issues and advice, the survey showed that most DSL services still come with termination fees of $70 and up. For the most part, cable broadband still involves no contracts or termination fees, a continuing plus. But CU's efforts showed that it's still worth checking the fineprint, since that's where researchers turned up termination fees with Comcast triple-play service in some locations. A portent of penalties to come in other triple-play cable offerings?

-- Paul Reynolds

Mobilizing music and text

Move over, Mickey Mouse. An estimated 40,000 mobilephiles have skipped past the Magic Kingdom and other Floridian points of interest to see the latest developments in mobile technology at CTIA, in Orlando, the biggest trade show in the U.S. devoted to mobile technology. While the show officially began today, it was clear at Monday’s preshow events that, beyond voice, it's music and text messaging that will be the “killer apps” of the foreseeable future.

Here’s a quick look at some new products that aspire to take mobile music and texting to a new level:

Texting from a different point of view. The Samsung SCH-u740 takes an intriguing approach to the cluttered keyboard problem that plagues most phones designed for texting. Its dual-hinged design integrates a full QWERTY keyboard with conventional phone controls into a relatively small package: just 3.84 in. x 2.04 in. x 0.58 in. Controls are arranged and color-coded to allow the SCH-u70 to function as a phone when you open it vertically, or as a texting device when you open it from the side; the screen is designed to automatically adjust to landscape or portrait orientation. Other SCH-u740 features include Bluetooth for wireless headsets (mono only), a MicroSD card slot for memory expansion, and a 1.3 megapixel camera, and access to Verizon’s high-speed EV-DO data network. (We’re testing the phone now and will post our findings soon.)

A music phone to flip over. A few months ago, we reported on two-faced cell phones with a media player on one side, a cell phone on the other. The idea is to avoid the confusion that arises when phone keys do double or even triple duty. This week one such phone the Samsung UpStage, makes its debut. Available from Sprint ($149 with a 2-year contract), one side of the UpStage has a smaller LCD screen and the dialing keypad for making phone calls, the other a large LCD screen and a dedicated touch-sensitive pad for music. Pushing a button on the side of the phone flips operation from one side to the other.

Unlike many of the music phones we’ve seen in the past, especially from CDMA carriers like Verizon and Sprint, the UpStage lets you easily transfer unprotected songs from a PC to the handset via an included USB cable. You can also sync music wirelessly via Bluetooth. Besides synching, the phone’s Bluetooth supports wireless stereo headsets, as well as a new feature called Bluetooth Caller ID. If a call comes in while you’re listening to music, Bluetooth Caller ID pauses the music and speaks the name of the caller’s name.

The UpStage is relatively thin and light, measuring just 4.07 in. x 1.73 in. x 0.37 in. and weighing just 2.57 ounces. It also includes a 1.3MP camera and camcorder, and a MicroSD card slot for up to 2GB of external memory. An optional case with a built-in battery can give the UpStage an additional 3-plus hours of talk time.

Wireless headsets with strings. Another form factor is emerging among stereo Bluetooth headsets. Departing from the “Princess Leia” earmuff designs that began appearing last year, some new models comprise earbuds that attach by wire to a Bluetooth pendant. The pendant interfaces with the phone, which can be several feet away. Manufacturers say these headsets are lighter and less cumbersome than the earmuffs. Another advantage: earbuds are easiest to remove from your ear to carry on an impromptu conversation.

One such model is the $110 Plantronics 260 Stereo Bluetooth Headset. The 260 allows users to wirelessly switch back and forth between conversations and music streaming from a Bluetooth device that’s up to 33 feet away. The 260 is claimed to be noise-isolating and able to operate up to 12 hours on a charge. It has an audio-out cable for connection to any music source that can accept a 3.5-mm jack.

Cell-phone boom box. With the rise of stereo Bluetooth capability, it’s inevitable that other accessories besides wireless headsets would emerge. Enter Altec Lansing’s T515, a wireless speaker system designed to play music streamed from any stereo Bluetooth phone that’s up to 30 feet away. A built-in microphone allows the unit to act as a hands-free extension, such as in teleconferencing. Weighing just 2 lbs., the T515 runs on either AC or 4 AAA batteries. It measures 11 in. x 7.25 in. x 3.5 in. Pricing and availability was not available at press time.

--Mike Gikas

A Smart Phone for Every Lifestyle?

While $350 and up (with a two-year contract) is the going rate for the superior e-mail and organizer  features of a top-of-the-line smart phone, newer consumer-targeted models promise many of the same advantages for as little as $200 (also with a two-year contract). These consumer smart phones also tend to be smaller, lighter and more phone-like in appearance than their pricier siblings.

They earned their smaller price tags and slimmer profiles by downgrading or outright eliminating one or more of the features that help make smart phones smart. These include touch screens, QWERTY keypads, data-network access, and multimedia. The end result is a variety of “specialist” smart phones geared toward specific lifestyles rather than one smart phone that promises to do it all.

Two examples of this trend are the Palm Treo 680 and Samsung SGH-i607 BlackJack. Both phones are available from AT&T (formerly Cingular) for about $200 with a two-year contract.  And both have very good e-mail and organizer applications. But they have very distinct personalities. The Treo 680, which retains the touch screen, full QWERTY keypad, and full document editing, is clearly intended for productivity-minded folks looking for an inexpensive laptop stand-in. Conversely, the BlackJack, which complements personal management applications like Microsoft Outlook with the ability to download tunes from AT&T music store, seems geared toward those who value entertainment and organization equally. 

But as with all consumer smart phones, the tradeoffs are just as noteworthy.  For example, the Treo 680, despite its advanced PDA features, comes with a puny VGA (640x480) camera. It also lacks high-speed Internet support, which almost guarantees longer waits for e-mails with large attachments. The BlackJack, on the other hand, does have high-speed Internet and a higher-resolution camera. But it won’t allow you to edit Word and Excel files, and its cramped QWERTY keypad makes dialing a challenge.

It’s not clear how long this “lifestyle” trend in smart phones will last. Apple threatens to upset things in June with its $500 and $600 iPhones. Though they’ll be much more expensive than their closest competitors, the iPhone's radically new design, built around an immense 4-in. color display that shape-shifts into various control panels, has already generated strong interest among consumer and business users alike. But whether you willing to wait for the iPhone or need a phone right now, check out our Ratings and Buying Advice.

-- Michael Gikas, Telecom and Mobile Reporter

Macworld: "Ars longa, vita brevis"

An ancient latin expression, referring to the art of healing, goes:  "Ars longa, vita brevis, occasio praeceps, experimentum periculosum, iudicium difficile," which, when forcibly converted into English, comes out, "Art is long, life is short, the opportunity fleeting, experiment perilous, judgment difficult."

Building technology in today's world is also, in my view, as much an "art" these days as a technical endeavor, as we continually strive to make the machinery more human-like and intuitive.  I also believe the above expression best describes my overall impression of this year's Macworld.

"Art is long..."

It has been claimed that Steve Jobs' ultimate dream (one he shares with others in his industry) is to build a handheld device that will allow whoever uses it to find any piece of information, from any part of the world, at any time of day, in any format, repurpose that information to the user's unique need, then retransmit it to anyone, anywhere, in any format, at any time. To that end, his company has built increasingly elegant and functional laptops, of which MacBook Pro is only the latest. The announcement of the impending iPhone is but another strategic step in the evolution of that vision.

Of course, the iPhone is already gathering critics, and it's still a half-year from release. Some don't like the cell and wireless protocols, the closed system (read: the battery), the choice of Cingular/ATT as a partner, the price, etc. This is all well and good, but perhaps too narrowly focused - there is a larger picture to consider.

iPhone: The Reality Check

Now that the hoopla surrounding iPhone announcement has subsided, it's time we take a more sober look at it. But first read my colleague Tom Olson's detailed iPhone preview, which includes his impressions of its Macworld debut demonstration. 

One nice thing about the part-smartphone, part-iPod, part-network receiver he left out: It's a quad-band, or world, phone. Besides the two frequency bands in the U.S. (800/850 and 1900 MHz), it operates on two bands prevalent in Europe, most parts of Asia, and other areas (900 and 1800 MHz). That means you should get the maximum cellular coverage at home and abroad.

We weren't given much time with the iPhone at Macworld, but we'll give it a thorough test in our labs when it becomes available later this year. Along with some positive first impressions, however, our early peek at this all-in-one phone also revealed some potential hang-ups:

Price. With a two-year Cingular contract, a 4-gigabyte (GB) iPhone costs $500, while the 8GB model will set you back $600. That's a heck of a lot of green, considering top-of-the-line smart phones from Palm and RIM rarely reach $350 with two-year contract. 

Smeared images? The 3.5-inch color display appears brilliant, and the fact that it doubles as a touch screen seems like an innovative way to save space on controls. But its dark, mirror-smooth finish will likely attract smudges, highlight scratches, and make it hard to see in sunlight. Imagine all the oily residue left by fingertips pecking out messages and phone numbers on its virtual keypads. Think about all smudges and, perhaps, scratches left by the five o'clock shadows and rouged cheeks that brush against it during phone calls. Want to watch a video? You may need to keep a bottle of Windex handy. 

iPhone: The world in the palm of your hand

I mentioned in my introductory post that if Apple was going to break into the smartphone/PDA market, it would have to be with a technology that is both transformative and disruptive. The new Apple iPhone, set to ship this coming June, is poised to be that rule breaker. 

The one key thing that sets Apple products apart from the pack is their fundamental simplicity, a hallmark of the company's products from the first graphical user interface of the original Mac in 1984 to the click-wheel of 2001's iPod.  Apple now intends to grab some of the smartphone market, again, by keeping it simple. 

Only 11.6 mm thick, the device sports a single large screen, 3 1/2 inches diagonally across, and a single "home" button at the bottom. Press it, and the bright 160 ppi screen comes to life, as seen in the image above. From there, virtually anything you want to do, from a simple phone call, to listening to your music collection, to watching a film you just downloaded from the iTunes Music Store, is only a few finger-taps away. 

Over the last two and one-half years, the iPhone team has been developing a completely new user interface allowing for better interplay of hardware and software. But at its core is something Apple fans are already very familiar with: Mac OS X. Yes, thanks to OS X under the hood, this device is capable of desktop-class applications and networking. 

Macworld: Apple's not just a computer company anymore

In a lengthy presentation that barely touched on the company's traditional computer products, Apple CEO Steve Jobs wowed the faithful earlier today with the introduction of several new products — and a new company name. Banishing the word "Computer," Jobs declared that the company will henceforth be known simply as "Apple, Inc." The new identity seemed fitting for a company now known more for the iPod than for its computer products. And the devices introduced by Jobs at the Macworld Expo — the $299 Apple TV networked media player and the long-awaited $499 iPhone (pictured) — certainly position the company even more firmly in the consumer electronics camp. We'll have a detailed report on everything Apple later today. In the meantime, remember the name: Apple, just Apple.

— MP

Technorati tags: apple, macworld, steve jobs, iphone, ipod, apple tv, itv

Verizon Launches V Cast Mobile TV, Enhances FIOS TV

During the preview day of CES, Verizon took the wraps off its V Cast Mobile TV service, which offers TV shows on the go, and unveiled several new features to its fiber-optic FIOS TV service.

V Cast Mobile, which follows the launch of V Cast Music at last year's CES, enables viewers to watch TV programs while on the go using new cell phone handsets, such as Samsung's SCH-U620 and LG's VX9400. The service, which rolls out some time in the fourth quarter, includes broadcast and cable TV programs from content providers including CBS, MTV (and its Nickelodeon and Comedy Central units), Fox, and NBC News and Entertainment. The service runs on Qualcomm's MediaFLO multicasting platform, and Verizon says the TV programming won't affect the quality of voice calls. Pricing will be announced closer to launch. A program guide will include the date, time and information about the show, and details can be viewed 48 hours ahead of the scheduled broadcast.

Enhancements to the FIOS TV service include a new interactive media guide that lets users control and manage not just TV shows and movies, but digital music, photos, Internet video and even games. Users can also remotely program their DVRs from any web-enabled PC, and eventually, from their Verizon cell phone. The new service complements the company's launch of a Home Media DVR ($20 per month), which can distribute content to other rooms of the house. Later this year Verizon will deliver Internet radio and user-generated video content, expand its video game offerings, and allow personalization via ratings and recommendation engines.

The new service will be rolled out first in New Jersey, hitting all 10 states where FIOS is now available by mid-year. (And stay tuned for more from us; we'll have our first review of FIOS online later today.)

--James K. Willcox

Cell phones and other mobile devices: What's expected at CES

Phones will continue their march to Swiss Army Knife status this year, with more models that do far more than just voice and texting (and photos, and video, and email).

Here are some of the developments I'll be watching for:

• Phones that are even thinner and smaller overall. Average size has dropped from 7.5 cu. in. to 6.5 cu. in. in just the last six months. We expect that trend to continue in the 2007 models.
• Better, more plentiful TV content for the mobile screen. Verizon and T-Mobile will be the first carriers to debut phones that can display 30 fps-video content on their tiny screens via MediaFLO. Unlike current TV-content offerings like MobiTV, which use the cellular network, MediaFLO is a separate network expressly designed for carrying video. One issue our testing will have to explore: Will the MediaFLO receiver shorten the phones’ talk time? (Many phones already supply power to two other radios: one for cellular service and the other for Bluetooth.)
• Your phone as a tour guide or Big Brother. You’ll see more phones (and other devices) that can access GPS-based services to help you find your way around town, locate a child, or notify you when a buddy is in your area. Services will range from $3-$4 per day to $10 to $20 per month.
• More smart phones. Cell-phone makers will be flooding the market with affordable versions of the smart phones used by business people. Designed for consumers, these new models, debuted this year via the Blackberry Pearl, Motorola Q and others, have advanced e-mail capabilities and high-speed network access, but lack the touch screens and PIM software found on more expensive models. They’re also more phone-like in size and appearance.
• More music phones, including possibly an iPod phone. Verizon and Sprint will be trotting out more phones capable of downloading songs from their online stores, while Cingular has also finally launched its own music service. So far, consumers have largely turned a deaf ear toward music downloads. But that may change if Apple introduces its own  phone at MacWorld.
• Higher-resolution phone cameras. VGA and 1-megapixel camera phones are practically standard. But we may see one or two 5-megapixel models as well.
• One phone for home and beyond. T-Mobile will be introducing new phones that seamlessly switch between cellular and VoIP service to ensure you never miss a call. The hitch: You have to buy VoIP service from T-Mobile.

— Mike Gikas, telecom and mobile reporter 

Technorati tags: mobile phones, cell phones, mediaflo, verizon, t-mobile, gps, ces, macworld, pmp, dap