20090429

Handset extortion

It's maddening. The coolest handsets are on the lamest carriers. Unlike their counterparts in the EU, or even Asia, getting the mobile phone handset you want on the carrier you desire is sometimes difficult, and many times, impossible.

Here's the deal: Each cell phone solution requires a unique combination of three things:

1. Handset. Examples include iPhone, PalmPre, BlackBerry Storm, etc.
2. Carrier. Examples include Verizon, Sprint, and ATTWireless.
3. Radio signalling method. Examples include GSM and CDMA. [I'm going to ignore things like frequency to simplify...]

Here's the problem - Handsets are made with the radio integrated inside, so every handset could have multiple radio options [GSM, CDMA, etc]. Further, Carriers don't support all radio signalling methods in all regions. So in order to get the phone you want on the carrier you desire you need to have all these things line up.

In Europe, they have taken steps [probably because of legislation] to simplify this mess. How have they done this? Nearly all carriers support the same radio signalling method - GSM. Further, they make it easy to move from one phone to another. All GSM phones utilize a "SIM Card" which can easily be removed and put into another phone. The SIM holds all your personal information, so when you move it to another phone that phone instantly has all your info, your contacts, your phone number, everything. The other phone is now empty and ready for a different SIM card. It is as simple as that! The carrier of choice is actually linked to the SIM card and NOT the handset. So changing carriers is simply a matter of getting a new SIM and plugging it into whatever handset you want. What an idea!

Why don't we do this in the US? Of course you know why...MONEY! The carriers have created mini-monopolies. They have custom protocols riding on top of incompatible signalling methods that require different radios. Further, they cut "exclusive" deals with handset manufacturers that prohibit them from putting different radio hardware in their handsets making them locked only one carrier.

What is the result? Well, in the US here is the result:

a. You can only get an iPhone on the ATTWireless network. A great phone on a mediocre network.
b. You will only be able to get a PalmPre on SPRINT. A cool phone on a lame network.
c. You can only get the BlackBerry Storm on VerizonWireless. A mediocre phone on a great network.

This is not good for consumers. It is simply a form of monopolistic control. It is quite maddening. I should be able to get whatever phone I want and freely move between whatever carrier I want. Sure you can subsidize with contracts, etc., but I should be able to pay extra money to get what I want, shouldn't I? I should not have to resort to mission-impossible-esqe "unlocking" schemes that are ultimately unreliable, unsupported, and wicked expensive.

There are clear examples of how companies can cooperate successfully while giving consumers control and options like they do in Europe. Nevertheless, it continues. Our US Congress is too busy giving billions of dollars to failing businesses being run by idiots who will lose it and ask for more later. Instead of doing their jobs and protecting consumers.

Welcome to America. Land of the free.