Editor’s Note: Due to the holidays, TRACNotes will not be published again until Friday, January 4, 2008. Happy holidays from the staff at TRAC!
Is DSL Now Cheaper Than Dial-Up? - Thanks to recent increases in rates for dial-up Internet service in certain parts of its service area, AT&T is promoting its lowest priced DSL package as less expensive than its dial-up Internet service. That got us to thinking, with the low price of many DSL packages these days, does dial-up internet service make sense? To answer this question, we reviewed the dial-up plans of eight national and local dial-up Internet Service Providers (ISPs). Most plans from the big national ISPs such as AOL and Earthlink will run $9.95 per month, with many carriers offering introductory rates for $7.00 or less per month over the first 3-12 months. The second cost factor to consider with dial-up is the price of a phone line. In our review of basic flat rate local calling plans in nine states, we found that the monthly service combined with the $6.50 federal subscriber line charge (but excluding other federal, state, and local taxes and surcharges) would run between $16.50 and $29.50 per month, depending on the state. Many people also use their local phone line for voice calls, so the comparison to a DSL-only line is not direct. However, many consumers purchase a second landline only to use for their dial-up Internet and perhaps home fax. So an “apples to apples” comparison for these second-line consumers is easier to make. A typical DSL plan providing 768 Kbps downstream speeds will run around $18.00 per month. Higher speeds of DSL can run from $24.00 up to $39.95 per month. Based on our review, customers looking for cheap Internet access would save by getting a bare-bones DSL line versus paying for an extra landline to run dial-up. However, customers using their existing landline to make voice calls and to access a dial-up ISP will probably still find that choice cheaper than signing up for DSL, The other comparison, of course, is to drop the landline entirely, get DSL and a VOIP phone service. This option is NOT for the technological faint at heart, and carries a risk that 911 may not work as well as it does on telephones connected to the landline telephone company’s network.
Who Needs Bells and Whistles? - With the holidays upon us, many consumers may be considering purchasing a wireless phone for a friend or relative. For the great majority of consumers, many of the features included on modern handsets remained unused. If all you want is an easy-to-use cell phone to make voice calls, why should you pay for cameras, video streaming capability, GPS, and all the other “gee whiz” gizmos? The fancy phones generate the most revenue per phone, so those are generally the ones that get pushed online and in retail stores. If all you want is a “cheap phone” to make voice calls, you will have to do a little more looking, but there are real cost-saving options out there. One option is to use a phone from a pre-paid cell company. For example the Motorola C155 offered by Tracfone Wireless (not affiliated with TRAC) costs only $14.99. This handset includes Caller ID and voicemail, but does not include a camera, MP3 capability, or other unnecessary gadgets. And you only pay for the service you use with no monthly fees. AT&T Mobility offers the LG CG180 as part of its GoPhone prepaid service. The candy bar style handset has texting capability and can surf the web, but it is a simple phone without a camera or other superfluous options. According to AT&T’s website, the handset is available for $19.99 after a $20 mail-in rebate. Verizon customers may be interested in the “Verizon Wireless Coupe” which currently retails for $39.99 with a two-year service agreement. In addition to the standard numeric keypad, the handset has three large red “In Case of Emergency” buttons which can be programmed to reach a friend, loved one, or emergency services at the touch of a button.
These are just a few of the many “basic” handsets available. Some general rules of thumb to use when shopping for basic handsets:
- Look for handsets with large buttons particularly if the phone is for a elderly user who may have trouble manipulating a small keypad
- Make sure the volume of the phone is sufficient that someone with difficulty hearing can use the phone. If possible, ask a salesperson to demonstrate how loud the handset can be
- Look for large text in the view screen. This is particularly useful for consumers who may have trouble seeing Caller ID text
For more information on basic phones, check out CNET.com’s recent comparison of some “basic” handsets by clicking here.
Are Ad-Supported Mobile Games Worth a Look? - Ask most any teenager these days what they do with their mobile phones and chances are that after they say “texting” and “take photos,” they’ll say “play games.” This trend towards gaming on the go is worth big money too. According to industry studies, the U.S. mobile gaming market (including games played on mobile phones, tablet PCs, and other mobile networked devices) will be worth $20 billion by 2010. With typical game downloads costing as much as $10 per game for top-of –the-line games, it’s not surprising that the market is growing so quickly. For game-hungry consumers on a budget, however, there are alternatives to these high prices -- namely, ad-supported games. GameJump is the market leader in this new segment of the mobile gaming market, but competitors like Hovr.com are also competing for a slice of the ad-supported mobile gaming market. GameJump games can typically be downloaded free of charge via an SMS or web link. Instead of paying a charge to download the game or signing up for a subscription service, the costs of the games are supported by advertising that appears before and after each gaming session. The only monetary cost to the users is the cost of the SMS message and the data usage time necessary to download the game and for the game to periodically connect to GameJump’s servers to download new ads. GameJump recommends its services to users with unlimited data plans on their phones, but at 20-25kb transmitted per connection, the effective cost of GameJump games isn’t onerous to typical, pay-as-you-go data customers. One big drawback to GameJump is that it is not currently supported by Alltel or Verizon Wireless. For more information on GameJump, click here.
INTERESTING LINKS
FCC Main Page: http://www.fcc.gov
FCC Complaint Form - http://svartifoss2.fcc.gov/cib/fcc475.cfm
List of State Regulatory Commissions: http://www.naruc.org/displaycommon.cfm?an=15
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