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iPhone 3GS: commentary on upgrade and tethering pricing…

Categories: Ideas and rants,
By: , IntoMobile
Monday, June 15th, 2009 at 3:32 PM

iphone3gs2

I’ve been reading the InterWebs of within the last week or so, and there’s been ‘quite a bit’ (wow, that’s the understatement of the year) of negative feedback on the costs of both the tethering (using the iPhone 3GS as a wireless modem), and also the cost of the new iPhone 3GS itself.

I can definitely see the arguments from the consumer side – Apple announces a desired new feature and just says “tethering” – great, everyone thinks, now I have a wireless modem too – but they don’t give any detail on the service cost. Likewise, they announce the device, but focus on features. Of course, when reality strikes, suddenly the costs of ownership/usage hit home!

But lets look at this reasonably – that is one fairly expensive device, so was it ever going to be (close to) free to upgrade? No. Does the tethering feature cannibalise the Operators’ USB modem strategy, removing what would have been potential customers? Yes. So you can see from the Operator side of things, they need to cover both the cost of the device, and the fact they now have extra traffic (generated by tethered iPhones) using the data access on their networks heavily.

The sting in the tail for the tethering issue is that most iPhone owners have some form of unlimited web access added to their contracts, so in theory you would think that it might include the tethering too – wrong. Unfortunately Laptop browsing (via the tethered iPhone) would occur at an entirely different usage rate that people just browsing on-device – and hence the Operators need to charge for this in order to cover costs.

But the biggest issues that I can see are really those of consistency and context – last time, with the 2G to 3G device, there was an upgrade path, and it was offered to customers – this time round, people have to bite the bullet. That’s just not consistent. Likewise, with the tethering, no real context was given when it was announced – and people get the wrong idea (about it being effectively free).

Ultimately it’s all about how the powers that be communicate their product and service offerings – if you aren’t clear or you don’t offer explanations, then you end up with a whole series of issues, and potentially LOTS of disgruntled customers. I can’t help think that with consistency and context on-point, a lot of this could have been avoided.

Having said that, it doesn’t matter does it – Apple will still sell loads of iPhone 3GSs!

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About The Author

Ben Robinson

Ben is a 10+ year veteran of the Mobile industry – starting his career when SMS was a still a relatively new concept for most people (!), he has now consulted on everything from bleeding-edge Mobile content, to the next-gen accessories you might view it on. As a result he has a broad and deep knowledge in numerous areas of Mobile – from network operators to device vendors, to infrastructure and middleware vendors (not to mention content delivery) – and has worked for companies in all of these areas! He is based in the UK, a hotbed of activity for mobile, and recently became a father for the second time – as oppose to in his younger years when he was happy spend time tweaking all manner of mobile devices to 'nth' degree, he now looks for services and hardware that provide the most efficient, compact, and reliable improvements to his already manic life! It’s his opinion that Mobile solutions should be there to help to make your life better – if a particular solution (be it service or device) isn’t doing this, he believes you need to ask the very important question of why you continue to use it... His focus at IntoMobile is mainly on Mobile content, services, and infrastructure, particularly as regards the UK market – and with the occasional look at devices. Additionally, using his extensive experience in the industry, he will provide commentary on the industry at large, with regular (and hopefully thought-provoking) articles.