Apple produced three versions of the iPhone 5 for different carriers and global regions, but the only unlocked version it appears to be selling is the GSM-LTE device for AT&T and the Canadian operators’ networks. That means you won’t be able to bring your pricey new gadget to a CDMA carrier like Verizon, Sprint, Cricket, MetroPCS or US Cellular. But the device will work on the networks of almost any GSM operator globally, whether AT&T, T-Mobile or Cincinnati Bell, Vodafone, Softbank or Telefonica. You just need to plug in the carrier’s SIM card.

There’s one big caveat though: While GSM (i.e. voice and 2G data) will work fine on the iPhone 5, more advance, faster data capabilities are a toss up, especially here in the US. If you’re hoping to get LTE access here in the States, then I’m afraid you’re out of luck. For now there’s a single US operator that has an large LTE network supporting this version of the iPhone, and that operator is AT&T. But that situation is changing as I’ll discuss more below. And there are definitely some decent carrier options for 3G out there.

Straight Talk

If you haven’t read my colleague Kevin Tofel’s definitive post on the virtues and vices of Tracfone’s SIM-card smartphone service Straight Talk, well, then you should. Straight Talk is a mobile virtual network operator (MVNO) that uses AT&T and T-Mobiles’ networks, but far undercuts both carriers in price. For $45 a month you get unlimited voice, SMS and roughly 100 MB a day of data.

For the iPhone 5, you’ll want to get a Straight Talk AT&T SIM, since you’ll have access to far greater 3G HSPA coverage. And while the iPhone 5 could technically access AT&T’s LTE network, Ma Bell hasn’t started offering up 4G access to its MVNOs yet so you’ll get HSPA speeds.

There are several other AT&T MVNOs that offer similar bring-your-own-iPhone plans: H2O Wireless and Red Pocket are two. Another MVNO you might want to look at in the future is FreedomPop. It is developing a WiMAX sleeve for the iPhone 5, and will eventually offer a VoIP service. Once those pieces are in place, it will basically turn the iPhone 5 into a data-only softphone.

T-Mobile

T-Mobile has been preparing for the unlocked iPhone 5 since it was announced – it may not sell the device, but it’s welcoming unlocked iPhone owners onto its network with open arms. The problem is T-Mo’s current funky network configuration means that it can only offer 2G data speeds on the device in most parts of the country. T-Mobile is in the process of reconfiguring its network, though, and has iPhone-friendly HSPA+ networks in 15 cities already.

In the next six months, its entire 3G network will be iPhone ready. So if you can wait a few months for mobile broadband — or live in one of the areas that already support faster HSPA+ speeds on the 1900 MHz frequency — signing up for one of T-Mobile’s value plans could give you a boatload of data for much cheaper prices than AT&T and Verizon are offering. Plus, since the iPhone 5 supports dual-carrier HSPA+, T-Mobile’s 3G network will be able to deliver near LTE speeds.

There’s another advantage to going with T-Mo. It’s LTE network will go live in the second half of 2013 over 1700 MHz/2100 MHz Advanced Wireless Service (AWS) band, which the unlocked iPhone just happens to support. The iPhone’s data capabilities may be limited on T-Mobile today, but it will be fully compatible next year.

AT&T

This may seem like a strange option, since most people buying an unlocked iPhone are trying to get away from the big carriers and their contracts, but the fact remains that AT&T is the only operator that can support the GSM iPhone 5’s full complement of 3G and 4G data connections. The advantage of using AT&T off contract is that when better options emerge, you’re not tied down to a two-year commitment. You can start off with AT&T, and when Straight Talk or T-Mobile gets LTE you can make the switch.

One final word of warning. To support the iPhone 5, your carrier will need a nano-SIM card, which is smaller than the standard micro-SIM most carriers use. Check to make sure your chosen carrier offers it before you take the plunge. Otherwise you’ll be forced to perform surgery on your SIM to get it to fit.

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In a ruling handed down on Monday, a New York state court found that subscribers the company had acquired through its merger with XM should not be counted in determining whether to award Stern a series of bonuses between 2004 and 2010.

Sirius signed up Stern’s production company One Twelve in 2004 and agreed to pay five separate bonuses of $75 million if subscribers numbers exceeded a series of internal milestones.

While Sirius and Stern agreed one of these milestones — 2 million additional listeners — was exceeded, the parties disagreed about whether they broke the other milestones of 4, 6, 8 and 10 million new listeners.

According to Stern and his agent, the numbers should take account of the 9 million subscribers Sirius picked up when it acquired XM in 2008.

Judge Barbara Kapnick disagreed, noting that Stern’s contract had a separate section contemplating the merger. The section promised Stern $25 million if the merger went through — an amount he collected while his agent, who was also party the lawsuit, picked up an extra $2.5 million for the merger.

Judge Kapnick found the contract clearly intended that the merger customers should not be counted towards the bonus. She agreed to Sirius XM’s request to throw the case out with prejudice.

The decision was first reported by the Hollywood Reporter.

Here’s a copy of the decision:
Sirius Stern Suit Denied Copy

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Choice is now here when it comes to U.S. iPhone service providers

Avoiding the Early Termination Fee

In most cases, you will not be able to avoid paying AT&T the early termination fee (ETF) of $325 minus $10 for each full month of your Service Commitment that you’ve already completed. Before you do anything, be sure you read the terms of your agreement, as each situation is unique and options may be available to you that are not available to others. Limitations aside, there are some options:

Within the first 30 days. If you’re within the first thirty days of your contract, you can likely cancel the contract.  You’ll still be liable for any usage and fees that were incurred during that time, but you won’t have to pay the ETF. You will have to pay an equipment fee if you don’t return the hardware.

Wait out the contract. It doesn’t take a mathematical genius to figure out that $10 a month over two years does not equal $325.  Hardly a well-balanced, pro-rated formula.  If you’re close to the end of your contract, just hang in there a little longer if you can.

Watch for an increase in rates. It’s unlikely that AT&T will be increasing its rates any time soon, but if they do (or have during the term of your contract), that gives you an out, since it allows you to exit early according to AT&T’s standard terms and conditions.

Move to a location without service. A bit extreme, but perhaps you were already moving for other reasons, or you already live somewhere without great coverage. If the area you are moving too does not have adequate coverage, then there is a chance you can terminate your contract without paying the ETF.

Sell the contract. According to the WSJ, sites like celltradeusa.com and cellswapper.com will charge you a fee to sell your contract to somebody else.  This may work with your average cell phones, but I’m not sure how well it will work with today’s smartphones and their expensive data plans. It’s worth a try, in any case.

Sell your hardware to cover the ETF. You can still get a lot of money for an iPhone 4, even one locked to a carrier. On Gazelle.com, a site that lets people sell their old gadgets for cash, you can get $430 for a 32GB iPhone 4. On eBay or on Craigslist, you can probably also get more than the $325 ETF. You’ll have to fork over for a new device, but at least you won’t be paying for it twice.

Getting Out at All Costs

Lets face it, everyone knew this day was coming, including AT&T.  Their customer service reps are all trained to keep you as a customer.  They know all the tricks because they deal with them every day.  It is therefore likely that the ETA will just be a reality that you will have to pay.  If such is the case, you have only two options left:

Cancel the account directly with AT&T. If you wish to sever ties with AT&T, you can leave at any time.  Targeting the end of your billing cycle is typically the best option. Contact AT&T Customer Service and inform them that you wish to terminate your account at the end of the current billing cycle. While this will avoid those prorated formulas that favor the carrier, it will limit your chances of being able to keep your phone number and you’ll still have to pay the ETF. When switching carriers, this is generally not the best way to go.

Transfer your existing phone number. Be sure to take a copy of your most recent cell phone bill with you when you decide which carrier you want to switch to.  Your billing information must remain the same from your old carrier to the new.  As per the FCC guidelines, cell phone carriers are required to transfer your wireless number, provided certain conditions are met.  Typically it’s the new provider that issues the request to the old provider when transferring a number.  If your phone number is not in active service, it cannot be transferred.  In most cases, it takes between two and three hours for the transfer to complete.

And You’re Out

Once you’re out, you’ll be free to go ahead and throw your lot in with Verizon. Of course, you might want to hold off on that until Apple releases its next iPhone, or to see if other CDMA carriers follow in Verizon’s footsteps. Got any advice other than that already mentioned here? Please share in the comments.

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Maybe you’ve built a website that the client decides to modify with no regard for best practices or usability. Or you’ve set up and managed their Facebook or Twitter channels, building the conversations and exchanges to a fever pitch, only to watch their updates and tweets generate crickets. All your hard work — on the client’s behalf, of course — disintegrates before your eyes.

What do you do when you’ve handed over the assets that your client has paid for, and they proceed to muck things up? Here are some tactics to temper the pain:

1. Take out the emotion. Anyone good — developer or creator — infuses passion into their work as well as blood, sweat and tears. But when your contract is over, you have to cut emotional ties with the project or the product.
2. Be prepared for potential disaster. Once something is out of your hands, it is no longer within your control. You have to ready yourself emotionally — and legally — for the possibility that your client will destroy the work you’ve done. Think about adding a clause into your contracts that outlines how you’ll respond to any changes that occur because the client is managing the assets you’ve turned over.
3. Have the conversation. Be open with your client about that clause in your contract that states what you may do after the contract ends. Assure them that you are all for empowering your clients to take over their assets and offer training and guidance, but make it clear what your professional response will be if they deviate drastically from best practices.
4. Develop a contingency plan with your client. Ask your client how they’d like you to handle the potential situation of witnessing them making a gross misstep in modifying the work you’ve done or mismanaging something. What would they want you to do if you saw them go astray?
5. Document carefully. While you are managing the assets, document everything. Take screenshots, track things, measure things, list things and compile any information that gives a clear picture of what you did and what was working while the assets were in your hands. After the contract ends, if you see problems arising, document everything to show the “before” and “after.” Record your assessment of their changes using clear, unemotional language and outline where you feel they’ve taken a wrong turn.
6. Make your case to step back into the mix. If you’ve kept the lines of communications open with your former client, approach them respectfully with your assessment and review the state of what you created for them. (Remember, again, to take out the emotion). Give a solid business case for re-engagement to help them get back on track. A smart businessperson will take the data you give them and will determine the ROI of renewing a contract with you versus letting their assets flounder or fail. Throughout this process, stay positive, encouraging and helpful.
7. Cut ties. If your former client decides they can handle things — and you feel they’re on a downward spiral — exercise your “what we’ll do if you mess things up” clause in your contract. The best course of action if there is no way to salvage the work you did is to distance yourself from the mess. You might consider removing the case study you’ve had on your website. Better yet, make sure your case study doesn’t link to the actual site or asset but instead uses screenshots that demonstrate the work you did. You can include a professionally-worded statement that the contract with the client ended on a particular date, and you are no longer engaged in managing the asset or that the client took over and that the current asset reflects their modifications. Again, stay positive. Never badmouth a client even if they are no longer your client. In the worst-case scenario, you may have to entirely remove any references to the client or the work you did for them to protect your company’s reputation. Only you can decide if and when drastic measures are necessary. At that point, focus on the good work you have done and continue to do and chalk it up to life as a consultant. You can only do so much, and once something is out of your hands, you just have to let it go.

What have you done in the past when a client messes things up?

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Of course, there are ways to unlock the iPhones that are simple enough for many computer users, but there lies the tricky mess of possibly voiding your warranty, so tread carefully. It’s likely you’re probably familiar with jailbreaking, risks and all, so I won’t belabor the point.

Buying the iPhone models off-contract won’t be cheap, since you don’t have a carrier helping out via a hefty subsidy, but as any contract-averse individual will tell you, you’ll end up paying far less for the hardware if you can avoid signing your life away for two whole years. Also you might sleep better at night knowing AT&T hasn’t successfully sunk its claws into you.

The now aging 3G 8GB iPhone will cost you $499, while the 16GB 3GS lists at $599 and the 32GB 3GS sells for $699 without subsidy. Those prices start to look a lot less reasonable now that Apple has announced the pricing for the iPad, even though when I bought the iPhone 3GS last year I had to pay full price since I was only a year into my three-year contract, it seemed perfectly fine to drop $700.

As for when you can get these unlocked devices, according to PC World, you might be able to do it right now. PCW writer Sarah Jacobsson called her local store and was told that they were already selling the devices unlocked. Apple hasn’t yet made an official announcement regarding the devices, or updated its web store to reflect the changes, but 9to5 Mac got early wind of the move, and Gizmodo later confirmed via official internal Apple documents.

It’s unclear exactly why Apple seems to do this every time the end of its current iPhone iteration is in sight, but a reasonable guess is that the company would like to sell off as many of the on-hand units it has before it has to deal with an influx of new 4th generation iPhone stock. Even if Apple plans to continue selling the iPhone 3GS alongside the next iPhone, which is likely considering the retention of the 3G last time as a low-priced budget option, Cupertino still probably wants to clean house and bolster sales ahead of the launch.

You’re only allowed to buy one per day, up to a maximum of 1o total phones, so if you’re aiming for an even dozen you’ll have to enlist the help of a friend.

The trick with time tracking is arriving upon a degree of detail that’s both useful and efficient. It doesn’t help you if keeping track of things is all you end up doing because it’s such a time and attention-intensive process. Conversely, a general account of “Peformed project-related work” for a time block of eight hours isn’t particularly illuminating, either for the client or yourself. So how granular should your time tracking and reporting be?

I worked with one company that insisted on providing time reporting for all project staff in 15-minute increments to all of its clients. It might seem impossible, and in practice, it was, though that didn’t change the wording of the guidelines. What ended up happening was that either the client would demand simpler reporting, or company assets on assignment would “go native” and refuse to submit such ridiculously extensive accounting of their time.

Over time, the most sensible way of going about time tracking for the company became apparent. Generally speaking, project staff would report changes in activity throughout the day in blocks of time of no less than half an hour, and no more than three. Then before passing on said info to the client, administrative staff would edit it, depending on the needs and wants of the particular client stakeholder receiving the report.

As a web worker working on a contract basis from home, your process should be similar. The easy part is knowing to what degree of detail you need for your own purposes of professional development: experience will tell you that. Determining what a client wants is trickier, but should follow a similar logic. Arrive at a standard first through trial and error with some early projects, and then use that as the template for all future engagements. Solicit and pay attention to client feedback after that to determine what’s right for the person you’re currently working with.

As with most things, the best way to go about it is to avoid extremes. Report too much or too little, and you’re likely to either over- or underwhelm a client. The perfect balance is hard to achieve, but a good balance shouldn’t be too hard to arrive at.

How do you determine how granular to make your time tracking?

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In this post, I’m going to list the standard things I provide every client. If any of these elements are missing, I find that someone walks away dissatisfied, be it the client or me. When present, they seem to allow things to progress fairly smoothly, although, as we all know, there’s no such thing as a sure thing.

Contract Document

Get it on paper. This is something I can’t stress enough, and something which still gets forgotten or overlooked so often it makes me doubt our capacity for learning as a species. If you need any evidence about the necessity of a contract document, look no further than the recent kerfuffle between TechCrunch and Fusion Garage over the CrunchPad/JooJoo device.

You don’t have to spend hours putting together a huge and complex contract before you start doing any work. At one firm I used to work with, we would issue proposals that included an abbreviated contract component. It wasn’t much, and it didn’t require a massive amount of time upfront when we weren’t yet getting paid, but it did ensure that clients felt the agreement was strong, and protected the interests of all parties.

Simple Mission/Objective Statement

The key to the document I’m talking about in this section is that it be simple. Make sure that you can express in plain language what it is the project is meant to achieve. Ensure that both you and your client agree on the wording, and agree on what it means before you set it in stone.

It will also help if this statement details a specific product or project endpoint that’s measurable. Otherwise, you might run into problems with an unknown quantity or an ambiguous endpoint that could result in a contract that drags on to a point where it isn’t really profitable for you to work on it any further.

Scheduled Check-Ins

Just like your significant other, your client is going to want you to check-in once in a while to make sure everything is still OK. It can become quite annoying, depending on the client, though you should always remember that the client is risking money on you as a contractor, so progress updates really are their due.

However, you can make it easier on yourself. At project outset, set up a regular schedule for progress updates, and hopefully that will curtail some of the unnecessary looking over the shoulder clients tend to do. It will also give you mini-goals to work towards between your larger milestones or deliverables, which should keep you on target.

Scope Change Documents

This isn’t strictly always necessary, but if it looks like the scope of the project is going to change, then it’s a definite must-have. I have a template of this type of document ready to go at project outset, in fact, because I end up using it so often, even though it only comes into play when the project you find yourself doing deviates from the one you set out to do.

As soon as you anticipate having to do more or different work than you and the client had agreed upon, the best thing for all involved is to provide them with a scope change document for approval before proceeding, unless you absolutely know that you have free reign. You’ll be protecting yourself from a whole heap of trouble, believe me.

Needs and Wants

Not every client will want all of the things I’ve listed here. In fact, a good many of them may try to talk you out of some of these. The fact remains that I think they’re necessities, and most clients will, too, once you actually use them. In the end, it’s all about making sure everyone involved gets what they want out of a project, not just what they think they want.

Do you agree with this list? Is there anything missing?

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Digital Signatures: The Facts

A digitally signed contract is just as legitimate as one signed by hand in most countries. There is plenty of precedent dating from the time when people were first signing and returning contracts by fax. If you ever need to, you can take someone to court to enforce a contract signed electronically. However, policies on accepting digital signatures can vary from company to company. Where one company will be perfectly comfortable accepting all your paperwork by email, another may want you to fax or mail in signed documents. We’re moving towards being able to do business without hard copies of our documents, but we’re not quite there.

The Strength of a Signature

There are several different ways that you can sign a document electronically. The big difference is in how the signature is verified:

• Your computer: Some software timestamps your signature and records the computer you used.
• Your IP address: Especially common with online services, your signature is recorded along with your IP address
• Public Key Infrastructure: Your signature is verified with a certificate issued by a trusted third party.

There’s a trade-off between the options: It’s harder to verify the first two options than PKI, but it can be difficult for an individual to get the required certificate for PKI. There are some online applications that use their own certificates in order to verify your signature, such as RightSignature. In comparison, Adobe Acrobat Professional allows you to create a digital signature that is verified based on the computer used. It can also use a certificate, but if you do not provide it with one, Adobe Acrobat will rely on your computer for verification.

Choosing a Signature Solution

Assuming that your employer or client doesn’t have an online application or a software package that they’d prefer you to use for your digital signatures, you’ll have to decide which option works best for you. It’s hard to find an option that is free as well as trustworthy. As long as you’re willing to spend a little bit of money, though, you can manage your contracts inexpensively. Personally, since I already have Adobe Acrobat on my computer, I rely on it, although I do not have a certificate to use with the software. While this is considered to be a less secure system than PKI, I haven’t had any problems with any document I’ve signed (even my 1099s). The downside is that Adobe Acrobat does not manage the entire signature process in the way that many online applications can — some will even send out emails reminding people to sign contracts.

What app do you use for digital signatures?

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• Consulting agreement
• Finder’s agreement
• General release
• Non-disclosure agreement
• Non-circumvention agreement
• Promissory note
• Sale of goods agreement
• At-will employment agreement
• Intellectual property agreement

Each template is fairly basic. The consulting agreement, for instance, offers spots to fill in information about both parties, as well as nine terms (each of which you can choose to remove, as well as an option to add further terms). Each term is constructed in legal terms, but most have several spots that are filled out with something along the lines of “Insert description of services and schedule.” You can also customize agreements with your own logo.

The web site provides a service beyond simply letting you put together templated agreements. It also allows you to acknowledge contracts, effectively signing them online without the back and forth or hunt for a fax machine that a printed contract can require. The interface can also make negotiating contract terms relatively simple, including a messaging system that allows you to walk through each term with a prospective client. You can also email forms, and save them as PDFs from the interface.

If you read through FastDue’s documentation, you’ll come across the suggestion that you run any legal agreement you make past a lawyer before you sign off on them. In general, I can’t recommend anything else — the fact is that we all really ought to run any contract we sign past our lawyer. But things don’t always work out that way. For web workers, it’s not unusual to sign a contract with a client in another state or even another country. Most lawyers are very familiar with the laws in their home state, but aren’t as comfortable with how laws in other states or countries can affect your agreement. To make matters more complicated, some freelancers and other web workers take on new projects often enough that taking each new contract to a lawyer has a prohibitive cost.

It’s not a perfect solution — after all, not all jurisdictions recognize electronic signatures on contracts yet. But FastDue does make it possible to get an agreement in place quickly, making it easier for web workers to create new contracts and legal agreements on the fly. As long as you feel comfortable with handling your contracts online, FastDue is a good solution to simplify the process.

Where do you get your legal documentation drawn up?

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A new report by TheStreet.com says industry pricing strategist Michael Cote thinks it likely that AT&T will go to further lengths to attract new blood. Specifically, he thinks they’ll drop the price of the entry-level iPhone plan by $10, from $69 a month down to $59. Such a drop would appeal to those customers who’ve put off a purchase to date because plan pricing is too expensive, which is a fairly large group, if Cote is to be believed.

Cote believes AT&T is considering the cut in part due to recent rumors that Apple might enter into partnership with Verizon in order to gain growth. It makes sense that AT&T would answer with some kind of concession that would allow Apple to continue broadening the reach of their device in order to convince them to stay a one-man girl, so to speak. $10 may not seem like much, but if you’re counting the total cost of the contract as the actual cost of the phone, a $10 decrease ends up saving you $240 over the duration, which is nothing to sneeze at.

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