Comments on: Femtocells Are Great, but the Payment Model is Backwards

By: Jim J.

Jim J. — Tue, 22 Sep 2009 17:54:38 +0000

If I remember correctly in their ToS, and I believe it was Verizon, when you install this femtocell you are also giving the carrier the ability to allow other outside subscribers access to use this device for their phone calls. I was a little surprised at that and it just plays to your argument.

By: Griffon

Griffon — Tue, 22 Sep 2009 03:24:59 +0000

Yes, exactly this model is just plain nuts. I can only assume this is the tip, where the try to force the early adopters or coverage desperate to pay for the future where they will be begging people to put these things in their homes… or so I hope, cause I sure as hell won’t be paying anyone to use my bandwidth to make a service work which I already paid them for :p. On a aside, but until in home QOS is standard then your now voip cel call might be worse when the kids have 3 torrent clients running for the latest wow patch.

By: HSK

HSK — Mon, 21 Sep 2009 23:39:55 +0000

READ the offerings – you do not HAVE to buy the unlimited option with the ATT Microcell. You can use your existing minutes. So the ATT version is actually a better deal than Verizon’s because it is $100 cheaper.

By: Nate

Nate — Mon, 21 Sep 2009 23:21:31 +0000

I still think the VZW method is a better deal. Of course, I don’t have any issues staying within my plan.

By: Scott

Scott — Mon, 21 Sep 2009 22:04:40 +0000

Kevin

I agree. The carrier’s should sell these things at cost with no monthly fee. It doesn’t cost the carriers anything (as you could use a land line or VOIP at home instead of your cel so it’s not like you going to use less minutes) and could save a customer from switch networks.

By: Darren

Darren — Mon, 21 Sep 2009 21:37:50 +0000

But Kevin,
It’s already been pointed out SEVERAL times on this page that AT&T are NOT charging more for this service. Let’s break it down once again:

VZW – no option for unlimited minutes, higher upfront cost on the box
T-Mobile – N/A
Sprint – $5/month *mandatory* fee whether you want to get ‘free’ minutes or not, or $20/month for unlimited minutes on all connected lines.
AT&T – Both options are availble – No fee, no minutes, or $20/mo for unlimited minutes.

By: HSK

HSK — Mon, 21 Sep 2009 21:37:05 +0000

KT – sorry, I did not mean to vent so much on what you said – you were fair, but elsewhere on the web it has been bad. I think @ $150 it is still a good piece of equipment if you want to improve your in-home signal. If ATT is not deliverying, you should move to another carrier. All of the carriers are going to upgrade at their own pace – so if one does not work well, then you need to move on. IMHO.

By: Darren

Darren — Mon, 21 Sep 2009 21:28:59 +0000

On VZW your calls through the ‘cell count against your plan minutes, whereas AT&T charges an optional upgrade for unlimited minutes via the ‘cell. Sprint charges $5 for no minutes, or $20 for unlimited.

By: Kevin C. Tofel

Kevin C. Tofel — Mon, 21 Sep 2009 21:27:41 +0000

Your bottom line is absolutely correct. But AT&T is getting the lion’s share of the blood-bath because they’re charging more and they seem to have the biggest reliability issue. It’s also not the first time I pointed out the backwards model: http://jkontherun.com/2008/11/06/femtocells-arri/

“I tend to agree with Marguerite Reardon from CNET who says “cell phone operators shouldn’t actually be charging customers an extrafee to use these services. They should be giving it away for free inexchange for making their networks more efficient.” is what I said back then.

In your case, it may save money. I already dumped my landline so this is an additional cost to me. The point being (as I said in the first comment), “Not saying it’s a bad deal for everyone, but folks have to carefully evaluate the costs and benefits.”

By: Nate

Nate — Mon, 21 Sep 2009 21:23:24 +0000

I don’t get why these other providers get away with charging the monthly fee, when Verizon doesn’t. On VZW, you just pay for the device, and you’re good to go.

By: HSK

HSK — Mon, 21 Sep 2009 21:22:05 +0000

Not sure what all the rants are on the web today about this. Sprint and Verizon offer the same type of equipment – for more $$ too – and they did not get the blood-bath like ATT is on this. It is a great piece of equipment if you A) need it and B) want to stay with ATT. I have a ATT land line and ATT DSL, so I’ll get the unlimited calling for free. This allows me to not put in a $40/mo office line. The $150 is not that big a deal – that is less than one month of service for me.

Bottom line – you do not HAVE to buy it, you do not HAVE to buy the unlimited plan and finally, you do not HAVE to stay on ATT.

By: Gavin

Gavin — Mon, 21 Sep 2009 21:18:29 +0000

I have terrible O2 coverage and so this would be an excellent gizmo, but paying for it would stick in the throat somewhat.

At present I use Skype on my iPhone for when the signal is particularly bad from the cell tower.

By: TateJ

TateJ — Mon, 21 Sep 2009 20:37:06 +0000

This is still cheaper than paying 60 bucks a month for a landline, but monthly fee still doesn’t sit well with me. 0 to 5 bucks a month would be tolerable. But it should be free

By: Darren

Darren — Mon, 21 Sep 2009 20:31:03 +0000

But if you do go with the $20/mo plan (with no commitment BTW) AT&T will rebate you $100 of that $150, so it’s a 5 month payback, not $15.

By: Darren

Darren — Mon, 21 Sep 2009 20:29:30 +0000

Well, in practice WiFi uses less battery power than 3G data, so you’re still better off sticking with that over 3G unless it’s not available.

By: Kevin C. Tofel

Kevin C. Tofel — Mon, 21 Sep 2009 20:29:22 +0000

True, the unlimited calling for $19.95 a month is optional. Bear in mind that AT&T is expected to charge $150 for the hardware, which is a bit of an initial outlay. That’s a 15 month payback in your case, and if you switch to another carrier, you won’t get that money back. And if you end up making more calls away from home, you will be using minutes — if you reduce them too much in this situation, you’ll end up paying even more.

Not saying it’s a bad deal for everyone, but folks have to carefully evaluate the costs and benefits.