America's first prepaid iPhone arrives on Cricket Wireless June 22

I wonder how much sticker shock Cricket customers are going to get.  Cricket customers don't tend to be big spenders.  

Quote:

Originally Posted by AppleInsider 

On June 22, Cricket Wireless will become America's first fully prepaid wireless carrier to offer Apple's iPhone, with an "unlimited" $55-per-month plan.

$500 is a good price, the interesting question is if one can use the phone with a different plan.

Quote:

Originally Posted by oberpongo 

No 3GS as cricket is CDMA and 3GS is GSM.
Wonder if the GSM portion of the 4S is unlocked.

The carrier should unlock it after three months upon request, IIRC.

I always thought prepaid meant no subscription. What's prepaid in a plan with a (USD 55.-) monthly service fee?

Quote:

Originally Posted by astra4 

I always thought prepaid meant no subscription. What's prepaid in a plan with a (USD 55.-) monthly service fee?

 you buy the phone

pay the fee in the months you want

if you don't pay you have a $500 paper weight

Quote:

Originally Posted by al_bundy 

 you buy the phone

pay the fee in the months you want

if you don't pay you have a $500 paper weight

Paper weight? I beg to differ!

Without a wireless plan, you get:

• Compact 8 mpx camera
• Music player with 16 GB memory + iCloud
• All the apps you want
• Browsing on WiFi
• FaceTime
• Siri
• etc.

I don't remember where I read it, but smartphones are used less than 5% as phones.

Quote:

Originally Posted by al_bundy 

if you don't pay you have a $500 paper weight

Actually, a very nice iPod touch.

Quote:

Originally Posted by iDave 

Actually, a very nice iPod touch.

What about iMessage, FaceTime and Skype on WiFi?

Also, I always thought Cricket leased Sprint's Towers.  The article as I (quickly) read it seems to imply a company with 7M subscribers has its own 50 state infrastructure.  With LTE.  I don't think so......

This a great first step for Apple into the prepaid market

The price on the iPhone 4 will be lowered with the launch of the iPhone 5.  I wonder if Apple forwarded that new lower price to Cricket for this launch. (doubtful).  If Apple did not, the $399 price point can likely drop further this Fall.  Possibly to $299 assuming there is some Cricket subsidy + the Apple price drop   

At the $399, a user saves over $900 vs. AT&T over the two year contract commitment.  Christ, I am tempted   :-)    At $299, that becomes very very interesting from a volume standpoint  

If this gets traction, I see the Big 3 having to address it 

Quote:

Originally Posted by astra4 

I always thought prepaid meant no subscription. What's prepaid in a plan with a (USD 55.-) monthly service fee?

Prepaid means you don't have a 2 year contract - you can cancel your plan anytime and sell your phone and leave the network - no termination fees. Many (most / all?) prepaid carriers offer monthly plans, even the top 4 carriers offer prepaid monthly plans. Prepaid is generally cheaper. Yes, you're paying $300 more for the iPhone to only pay $55 a month for service, but the goal is that you will save money over the typical 24 month contract.

Quote:

Originally Posted by bigpics 

Can you Skype on it on WiFi?

 

Also, I always thought Cricket leased Sprint's Towers.  The article as I (quickly) read it seems to imply a company with 7M subscribers has its own 50 state infrastructure.  With LTE.  I don't think so......

Cricket does indeed run its own network on 1900MHz and 1700MHz, depending on location. They use Sprint/MetroPCS/and other CDMA networks in locations where they don't have their own network in order to achieve a nationwide network, all without roaming fees. I believe Verizon is the only one not included (unless you pay roaming fees) They're working on their LTE options - I believe they were testing their LTE network in... Arizona? Here in California (where Cricket is based) they've had their own network in the Central Valley and San Diego for about a decade.

I thought Cricket resells the same slow CDMA network from Sprint.   If so, then it doesn't support data and voice at the same time.  

Quote:

Originally Posted by SolipsismX 


A wireless plan ≠ using as a phone. While the phone app might be used less than 5% (I'm sure I'm even less than that) the wireless data plan with a smartphones is used quite extensively (especially with iPhones). All your other points I agree with.

I consider the phone part the more important. The data I can do (and have done at times) completely without. Some of us have WiFi 23.30 out of 24.00 hours. Besides, wireless data plan is of little use in, say, NYC subway.

I have a friend on Cricket that is very happy with their coverage and service. Like any carrier, depending on where you live it can suck or be a very good experience. Since Cricket is CDMA, I wonder if a Sprint or Verizon iPhone can be ported to work on Cricket. They have done that with Android phones in the past. If that is possible you might see a lot of used iPhone 4S for far cheaper than $500 being used on Cricket. $55 * 24 months is $1,320 vs $85 as an average for a single line on the big 3 for $2,040. So you would definitely recoup the $300 price difference in the phone. 

Competition in the market is always a good thing and major carrier plans have been creeping up for years and offering less value for your money. Notice how Verizon only offered the double your data promo to LTE Android phones and not the iPhone. And AT&T finally confirmed their unlimited plan was really only 3GB and then throttled after that. All mobile phone plans should include unlimited texts and unlimited mobile to mobile minutes since it costs them so little. They should only really differentiate their plans on calls to landlines and data. If any carrier finally has the balls just to charge a flat rate $10 per GB and be done with it they would probably get a lot of customers. 

Prepaid, okay, okay… Can I get it without a data plan?

Quote:

Originally Posted by Red Oak 

This a great first step for Apple into the prepaid market

 

The price on the iPhone 4 will be lowered with the launch of the iPhone 5.  I wonder if Apple forwarded that new lower price to Cricket for this launch. (doubtful).  If Apple did not, the $399 price point can likely drop further this Fall.  Possibly to $299 assuming there is some Cricket subsidy + the Apple price drop   

 

At the $399, a user saves over $900 vs. AT&T over the two year contract commitment.  Christ, I am tempted   :-)    At $299, that becomes very very interesting from a volume standpoint  

 

If this gets traction, I see the Big 3 having to address it 

Cricket can't participate in any sort of subsidy, they aren't guaranteed a payment,you could rip them off SO easily that way.

If Cricket uses Sprint's network, it will be a very slow data speed and spotty coverage.  I have been checking Sprint's data speed using an iPhone app and Sprint is usually the slowest of the Big Three carriers on the iPhone, typically running at under 400 kbps downstream. Still, if they sell unlimited data and minutes at $55/mo. without a contract it might be worth it for a current Sprint or Verizon customer with an iPhone that is out of contract, if Cricket will accept a Verizon or Sprint phone.

Quote:

Originally Posted by daylove22 

The first step in the US..In Europe they are all prepaid and the iphone has been selling there for long time.

 

Well, I see this a sign of the US finally starting to crack the horrible subscription model of the telecoms.

Quote:

Originally Posted by DrDoppio 
Well, I see this a sign of the US finally starting to crack the horrible subscription model of the telecoms.

The "US"? This is a sign of Apple trying to crack the subscription model of US telecoms.

Our government is paid off to ignore the fact that we're the only country on Earth that forces iPhone users to have data plans and two year contracts.

Among all other phones, obviously, but I don't know the stats of the others.

Quote:

Originally Posted by DrDoppio 

 

Well, I see this a sign of the US finally starting to crack the horrible subscription model of the telecoms.

Cricket is hardly the only pay-as-you-go mobile telecom provider out there.

Quote:

Originally Posted by NJ Analyst 

If Cricket uses Sprint's network, it will be a very slow data speed and spotty coverage.  I have been checking Sprint's data speed using an iPhone app and Sprint is usually the slowest of the Big Three carriers on the iPhone, typically running at under 400 kbps downstream. Still, if they sell unlimited data and minutes at $55/mo. without a contract it might be worth it for a current Sprint or Verizon customer with an iPhone that is out of contract, if Cricket will accept a Verizon or Sprint phone.

You can't extrapolate your local and very anecdotal experience to say that all Sprint customers get slow speeds. I average 1.3 to 2.1M which is plenty fast for pretty much anything I want to do even including watching Netflix. Sprint is not only building up their LTE coverage and will cover their entire 3G map with LTE by the end of next year but are also doing a major overhaul of their entire network with new equipment in a project called network vision. The old Nextel frequency of 800Mhz will be repurposed as CDMA and then LTE so Sprint's coverage and speeds will really start improving. I will grant you it may be a bumpy ride for some people while they are upgrading towers in your area but it is not fair to say everyone gets slow speed on Sprint.

I live in Atlanta, which is one of the few cities that has LTE up an running on Verizon, AT&T, and Sprint. When the next iPhone with LTE is released in a few months, only Sprint iPhone customers in Atlanta will be able to enjoy unlimited LTE data. If anyone is curious about Sprint LTE coverage you should check out this website. http://s4gru.com/index.php?/forum/9-network-network-visionlte-deployment/

Quote:

Originally Posted by Tallest Skil 

 

The "US"? This is a sign of Apple trying to crack the subscription model of US telecoms.

 

Our government is paid off to ignore the fact that we're the only country on Earth that forces iPhone users to have data plans and two year contracts.

 

Among all other phones, obviously, but I don't know the stats of the others.

That's true.  In Canada its 3 years

you can use Skype to make calls via wireless N networks

Quote:

Originally Posted by Tallest Skil 
Our government is paid off to ignore the fact that we're the only country on Earth that forces iPhone users to have data plans and two year contracts.

Where in the world did you hear that? Many countries require data plans and contracts. And even in the countries that offer you a choice between subsidized/contract and unsubsidized/pre-paid, you rarely get a better deal over 2 years by buying it outright for around $800. Here is the contract details for example from Softbank in Japan. http://mb.softbank.jp/mb/iphone_en/event/reserved/price_plan.html

Quote:

Originally Posted by JeffDM 
I'm pretty sure iPod Touch can use iMessage. iPad has it. FaceTime is out, I'm pretty sure it's not offered on current models. Skype, not the current models, unless you have a mirror.

What? Of course it has FaceTime… Wait, what are we talking about? Both the iPhone and iPod touch have FaceTime and can use Skype. We're talking about an iPhone where the user stopped paying the prepaid plan.

Cricket does not offer unlimited data. They reserve the right to slow you down at 1gb. They also have dirt slow speeds.

"http://www.mycricket.com/cell-phone-plans#smartphone-plans" 

Quote:

Originally Posted by Tallest Skil 

 

Our government is paid off to ignore the fact that we're the only country on Earth that forces iPhone users to have data plans and two year contracts.

Patently incorrect about the two-year contract requirement.

Straight Talk "Bring Your Own Phone" SIM card, $45/month no-contract. Unlimited talk, unlimited text, and "unlimited" data (which anecdotally has a soft cap around 2GB followed by an allegedly "you're a data hog" message). Just buy the unlocked retail iPhone 4S at Apple.com for $649 plus the one-time $15 for the SIM card. Your phone will be connecting to AT&T's cellular towers. If you're in an area with HSPA+, you'll have the faster connection. Total cost of ownership over 24 months: $1744

By contrast, here how Cricket breaks down. Partially subsidized handset $500 and $55/month no contract. Total cost of ownership over 24 months: $1820.

And good ol' AT&T? Subsidized handset $199, $36 activation fee, $120/month on a 2-year contract (unlimited talk, unlimited text, 3GB data). Total cost of ownership over 24 months: $3115.

Monthly cost of ownership (over 24 months):

Straight Talk: $72.67

Cricket: $75.83

AT&T: $129.79

You can knock off a couple of bucks a month from Straight Talk if you prepay for several months of service in advance.

Another benefit: the Straight Talk micro SIM works fine in an iPad if you need cellular data in a pinch.

Sadly, AT&T prepaid terms recently changed and they eliminated data packages from the GoPhone Pay As You Go $0.10/min. plan. That was a great option for someone with minimal talking/texting and modest cellular data needs.

Quote:

Originally Posted by cvaldes1831 
…"Bring Your Own Phone" SIM card, $45/month no-contract. Unlimited talk, unlimited text, and "unlimited" data… …iPhone 4S… Your phone will be connecting to AT&T's cellular towers.

They actually allow that? They don't stop you and say, "hey, pay the iPhone plan price"?

Allow it? The chairman encourages it.

http://www.businessweek.com/news/2012-02-07/carlos-slim-shows-users-how-to-switch-iphones-away-from-at-t.html

Basically, Straight Talk iPhone users are using AT&T cellular towers at a 44% discount.

Quote:

Originally Posted by cvaldes1831 

 

Monthly cost of ownership (over 24 months):

Straight Talk: $72.67

Cricket: $75.83

AT&T: $129.79

 

Good breakdown. I will add Sprint and Verizon as well over 24 months. (standard pricing without corporate discounts) One nice advantage to big carriers is that corporate discounts as high as 25% can really bring prices down substantially.

For Sprint I used the $79 plan, (unlimited data, unlimited texts, unlimited mobile to mobile, 450 landline M-F starting from 7AM to 7PM)

For Verizon I used $89.99 plan (unlimited texts, 2GB data, no unlimited mobile to mobile except to Verizon, 450 anytime minutes M-F 7AM to 9PM) You can add $20 a month for 900 talk minutes, add $20 for 5GB a month, subtract $10 for 1,000 text plan. 

Both are for iPhone 4S-16GB

Sprint $88.83

Verizon $99.78

(For the Verizon unlimited everything except data at 5GB, it works out to $149.78 a month over 2 years)

I should add that Sprint offers full upgrades at 20 months, not sure about Verizon or AT&T. Most phone geeks at least will upgrade at 20 months and some even far earlier than that and not 24 months, so the Cricket deal is really not that great. The only problem with 20 months is my upgrade date is June 1, 2013 so it so close to the 2013 iPhone release I will have a hard time deciding to wait or not. But I guess it would balance out again in 2015.

To be fair, we should be comparing similar service levels, i.e., unlimited talk, unlimited text, and 2-3GB of cellular data since that's what Straight Talk and Cricket offer.

Thus, Sprint would be $199 subsidized handset, $36 activation fee, $110/month for unlimited talk/text/data. Total cost of ownership over 24 months: $2875.

Verizon's costs would be identical to AT&T's.

Note that even if you went with the smallest voice plan on AT&T and Verizon and eliminated texting yet retained 2-3GB of cellular data, you'd still have a monthly cost of ownership of $79.79.

Here's a more complete table:

Monthly cost of ownership (over 24 months):
Straight Talk: $72.67 (unlimited talk/text, 2GB data)
Cricket: $75.83 (unlimited talk/text, 2.3GB data)
Verizon: $79.79 (450 min. talk, 2GB data, no text plan)
AT&T: $79.79 (450 min. talk, 3GB data, no text plan)
Sprint: $89.79 (450 min. talk, unlimited text/data)
Sprint: $119.79 (unlimited talk/text/data)
Verizon: $129.79 (unlimited talk/text, 2GB data)
AT&T: $129.79 (unlimited talk/text, 3GB data)

It still makes more sense to use Straight Talk since you're basically saving a few bucks off similar cellular data service from Verizon and AT&T, and they're basically tossing in unlimited talk and text.

Note that I'm only comparing currently available cellular plans, not something that someone has been grandfathered into.

Quote:

Originally Posted by Tallest Skil 

 

The "US"? This is a sign of Apple trying to crack the subscription model of US telecoms.

 

Our government is paid off to ignore the fact that we're the only country on Earth that forces iPhone users to have data plans and two year contracts.

 

Among all other phones, obviously, but I don't know the stats of the others.

Quote:

Originally Posted by Hudson1 

Cricket is hardly the only pay-as-you-go mobile telecom provider out there.

Let me elaborate... I see the fact that you can get iPhones as prepaid in the US as a sign of change:

US has had prepaid before; IPhone can be bought prepaid outside of the US; what's new is that the phone maker that has benefited most from the US subscription model is trying the alternative.