Clark Howard Calls BS on ATT Over iPhones

99% of the time, Clark Howard is a consumer's best friend. He does not pull punches. He tells it like it is. Yesterday he got into a discussion on all of the hype surrounding iPhones. There is, of course, only one way to get an iPhone that works. You have to sign up for an AT&T wireless phone plan. And you have to sign a two year service contract. This is where Mr. Howard calls BS on AT&T. Why? Because for years, AT&T and the other wireless companies have cited the deep subsidies they provide on the phones as the reason for the lengthy service contracts, all with hefty cancellation penalties. Only problem in the iPhone scenario is that AT&T is providing zero subsidies on the phones. Even more than that, you have to spend an arm and a leg on the only data plans available for the phones.

Mr. Howard goes on to say why the iPhone will be good for all of us in the long run:

"In other countries, there are no restrictions on what features a phone can have, but in the U.S., the cell phone companies control what a cell phone is allowed to do. Let's say you want GPS...U.S. phone companies want to be the ones to sell you that service, so they make cell phone makers deactivate the GPS feature. Apple has been aggressive towards these cell phone companies, and maintain that no one can say what the phone does except them. Apple has made this a true consumer purchase, letting the consumer decide what it will do, as it should be. So ultimately the iPhone is going to democratize the cell phone industry."

So if you want an iPhone, go for it. Be the cool kid on the block and help the rest of us stuck with poor phones and shoddy service. I think, no I know, I can wait. If I even thought about spending US$500-600 for a phone, and then a chunk of change  for a monthly service plan, SWMBO might have an issue or two. But then again, it would still be cheaper than smoking.

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Clark Howard:  iPhones will change the cell phone industry