The expense of having a smartphone goes way beyond the initial purchase price. The figures add up quickly because of the data plans that are required on the Droid and iPhone. Taking a quick look at the two-year price of two carriers, Verizon and AT&T, it’s obvious why these carriers and others are pushing smartphones.
Verizon Plan with Two Droids
The Motorola Droid is a very cool phone. It runs on Google's Android operating system and is considered by some the iPhone's only serious competition. As an example, take a look some fairly heavy voice and data users who use this phone: a husband and wife whose jobs require lots of communication in all forms. They have Verizon’s Nationwide Family SharePlan with the following options:
- Two Motorola Droid phones - $199.99 (assuming a buy one get one free offer)
- 1400 minutes per month allowance, talk and text service - $119.99 per month
- Two data plans, one for each of their phones - $59.98 per month
That’s a whopping $179.97 per month, not including taxes. Multiply that by 24 months, the term of Verizon’s contract, and anyone can see why Verizon loves smartphones: $4519.27 total for two years.
These individuals are heavy users, so the big dollar figure is not too surprising. But what about a lighter user? Read on.
AT&T Individual Plan With an iPhone
If you haven’t heard of an iPhone yet, you’ve been living under a rock, or at least in the 1990s. Passing the iPod as the world’s coolest device, the iPhone has made quite a splash, but it isn’t cheap.
An individual user, for example, using AT&T and the following options:
- iPhone - $299.99
- 450 minutes per month - $39.99
- Data plan - $30 per month
- Opt out of texting service - $0
Though this individual is a lighter user, over the 24 month contract period, he or she would pay $1979.75. That’s a considerable amount, even taking into account the convenience of wireless internet anywhere there is cell service.
Is a Data Plan Required for the Droid and iPhone?
In a word, yes. There are many users who would like to use one of these devices without the data plan, and just use wifi whenever it’s available. After all, both devices are wifi capable.
However, Verizon and AT&T specifically state that a data plan is required if you are using these phones on their network. It’s no surprise that the carriers want to cash in on the smartphone craze.
An Alternative to a Data Plan: iPod Touch
A reasonable alternative for those who want the functionality of internet and apps in their pocket, would be to carry a regular cell phone with just voice service, and in addition, carry an iPod Touch.
An iPod Touch can download apps, and access internet and email wherever wifi is available. It is essentially an iPhone, minus the phone capability and the costly data plan. It’s more hassle to carry around two devices, but it will save $720 plus taxes over two years.
Smartphones are Here to Stay
There’s no doubt that in five years or less, almost every phone will be a smartphone that can do everything from starting a car’s ignition to preheating an oven on the way home.
The question remains, however, if competition will drive down data plan rates, or if the proliferation of smartphones will create a bandwidth shortage, actually driving up data plan prices. It will be an interesting five years for smartphone users and carriers alike. One thing is for certain, however: carriers are sure to cash in on the smartphone craze.
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