Salt Lake City, Utah, is going to be installing payment systems throughout the city that can take payment from customers using their smartphones. Image from Wikimedia Commons.

Salt Lake City, Utah, will soon begin experimenting with a wireless payment system in conjunction with three wireless networks. The system, called Isis, is set to debut in 2012 and will use cellular phones to wire payments from a person’s credit or debit line with a bank.

Cell phone credit card technology takes another step forward

Several months ago, the iPhone was equipped with near field communication (NFC) technology to be used as a wireless payment system. A computer chip is installed in an iPhone that can be picked up by a reader system. The bank account or credit card account connected to the chip’s owner is then charged by merchants. One merely needs to wave their iPhone with the NFC chip, and a deduction is made from the appropriate account. Many believe this will be a great leap forward in financial technology. Because so many phones have internet access, people can already use a smartphone to do banking transfers, balance their checkbook or get online personal loans.

Wireless payment network to debut in Salt Lake

Salt Lake City, Utah, will be equipped with an NFC system, according to NPR. The public transportation system will have NFC readers and fares can be paid by waving a phone by the NFC reader. Three major wireless carriers — AT&T, T-Mobile and Verizon Wireless — are forming a partnership venture with the city using Isis, the NFC system that those carriers are using.  Those carriers still have to come out with NFC equipped phones besides the iPhone. Sprint, according to BusinessWeek, is still developing its own NFC technology.

Tech not widespread enough

Critics have observed that NFC technology is not widespread enough to turn Salt Lake into the “place where you can leave your wallet at home,” as the ad campaign on the Isis company website contends. However, smartphones are beginning to become far cheaper to buy and payment technology is moving toward wireless systems.

Sources

NPR

BusinessWeek

Isis corporate site

AT&T has offered $39 billion for T-Mobile -- if regulators agree. Image: Flickr / mrvjtod / CC-BY-SA

In a deal valued at $39 billion, AT&T has made a bid to buy T-mobile. This deal must be approved by the Department of Justice and Federal Communication Commission, which may prove a challenge. If approved, this deal would prove to be both good and bad news for most consumers.

The basics of the AT&T / T-mobile merger

T-Mobile is currently the fourth largest wireless provider in the United States. Owned by Deutsche Telekom AG, T-mobile was entertaining offers from both AT&T and Sprint-Nextel. AT&T has offered $39 billion in cash and stock to purchase and merge with T-mobile. Combined, the two cell phone companies would have about 130 million customers, more than Verizon Wireless. Before the merger can go through, it must be approved by the Department of Justice and FCC. The DOJ must certify that the new business is not a monopoly. The FCC must certify that the AT&T / T-mobile merger would not violate communications law. These regulatory approvals could take a year or more.

Why the AT&T merger is good for your wallet

If the AT&T / T-mobile merger is eventually approved, there are some definite upsides for customers. Regulatory agencies will likely require that the new, merged company provide extended service to underserved areas. The merger will also reduce the strain on the spectrum of available wireless networks. The merger would also expand the availability of high-speed wireless broadband. In short, the new company would be able to provide expanded service to wireless customers.

How the AT&T merger could hurt your wallet

The proposed merger is expected to increase income by $3 billion per year, most of which will come from the short term loans of customers. Combined, the new AT&T and Verizon would serve 75 percent of wireless customers in the United States. This duopoly would reduce the downward pressure on prices, increasing the price paid for wireless service. The combined company would likely follow AT&T’s lead in limiting wireless data and charging higher prices for overages.

The increasing cost of wireless service

Outside the proposed merger of AT&T and T-mobile, the cost of wireless service is likely to continue increasing. Cities, states, and municipalities often charge taxes over and above the federal tax on cell phone service. The combined tax rate on cell phone service often ends up being very near the tax on cigarettes and alcohol. Nationwide, the average tax is 16 percent. This tax is regressive — individuals with lower income end up paying a higher percentage of their income for the same service, at times with no credit check payday loans. Landline telephone service, on the other hand, averages a three to five percent tax.

Sources

Bloomberg
A Growing Burden: Taxes and Fees on Wireless Service (PDF)

U.S. Cellular, a mostly regional cell phone carrier in the Midwest, ranked number one for cell phone carriers in a Consumer Reports survey. Image from Wikimedia Commons.

Recently, Consumer Reports unleashed its rankings of cellular service providers, and U.S. Cellular came out on top. Oddly enough, AT&T, which carries the iPhone, was rated the worst of major providers. However, Apple disciples can rejoice as the iPhone was one of the best-rated smart phones.

US Cellular rated the best, serving mostly Midwest

U.S. Cellular, in the annual Consumer Reports cell phone survey about carriers and models, was rated best cell phone carrier, according to Computerworld. The small carrier, with about 6 million subscribers in 26 states mostly in the Midwest, scored an 82 out of 100. On the other hand, the mighty fell drastically, with AT&T rating only 60 out of 100. AT&T received less than 60 points on average with consumers in nearly all major metro markets. San Franciscans seemed to hate AT&T’s guts, as the carrier received a 52 out of 100 overall from the city by the bay. Verizon and T-mobile both lost a point since the same survey last year, dipping to 74 and 69, respectively. Sprint climbed to 73 to claim third overall.  AT&T was raked over the coals by consumers for poor reception, data access, dropped calls and customer service.

iPhone rated among best smartphones

The survey of about 58,000 consumers also rated smartphones. One of the best-scoring smartphones was the iPhone 4, which received a score from consumers of 76 out of 100. The iPhone tied for first with three other smartphones, all Samsung phones operating on Android. The three Samsung models were the Samsung Captivate, Epic 4G and Vibrant models. A brouhaha developed earlier this year between Apple and Consumer Reports, as Consumer Reports listed the iPhone 4 as a model of smartphone the organization did not recommend buying.

AT&T responds

AT&T immediate fired back, saying that the company is committed to quality and is going to set about changing its image in consumers’ eyes. It appears that the company has a lot of work to do for that to happen.

Sources

Computerworld

The Verizon MiFi device creates the link that makes a Verizon iPad possible. Image: scriptingnews / Flickr / CC-BY-SA

Verizon Wireless today announced that on Oct. 28 the Apple iPad will be available in its stores. Though the Verizon iPad will not use the 3G cellular network, it will be bundled with cell-network Wi-Fi to provide internet access. This workaround, long touted by iPad users who are also Verizon customers, will be sold for $629 plus access charges.

Verizon’s iPad network solution

The Verizon iPad will not use the CDMA network, despite many who were hoping this would be the first step to getting the iPhone on Verizon. Instead, Verizon Wireless will bundle the Wi-Fi iPad (usually sold for $499) with the Verizon “MiFi” device. The MiFi takes cellular network signals and transfers them into a local wireless network. Sold together, the MiFi and Wi-Fi iPad combination will be able to access Verizon Wireless’s 3G network. The monthly access charge will start at $20 for 1 gigabyte of data transfer.

Verizon iPad means more Verizon iPhone rumors

There has long been a rumor that Verizon wireless would start offering an iPhone. Neither company has officially announced a Verizon iPhone release date, and neither has confirmed any rumor up to this point. AT&T still carries the exclusive contract for the iPhone. AT&T will also be selling an iPad in store. The $629 price will be the same as Verizon, though the data access charges will be $25 for 2 gigabytes.

Creating your own Verizon iPhone

Though it is not yet legal to jailbreak an iPhone, it is possible to create a Verizon iPhone legally. An iPod touch is a Wi-Fi enabled device that does everything an iPhone does, except make phone calls. A Verizon MiFi device creates the mobile Wi-Fi hotspot needed to run it. The Google Voice app and functionality, loaded onto the iPod touch, turns your device into a cell phone. Access charges, depending on your data usage, could even be less than the standard iPhone — and you get Google Voice functionality that not even iPhones can offer.

Smartphones may be taking the place of credit and debit cards soon. (Photo Credit: CC BY/Edmund Jenks/Symbology)

Banks and credit card companies have made a great deal of money off consumers who have depended upon them for both impulse and emergency purchases via short term credit. However, there may soon be a way for consumers to escape the wheel of revolving interest debt if AT&T and Verizon Wireless have their way. According to Bloomberg, the swipe-and-pay “PayPass” technology used on some smartphones is ready for a revolutionary – many say evolutionary – step. Smartphone pay for purchases and bill pay may become a reality soon, making credit cards and even debit cards obsolete. Mobile billing via the wireless carriers would simply place charges on the consumer’s monthly wireless bill.

Smartphone pay threatening Visa, MasterCard

A proposed partnership between AT&T, Verizon Wireless and T-Mobile would work through Discover Financial Services and the Barclays banking conglomerate. Consumers would be able to pay with a “contactless wave of a smartphone,” according to the Bloomberg report. Considering the growing popularity of smartphones in the United States, more than 1 billion plastic cards could be in danger of hitting the junk drawer if smartphone pay takes off as experts predict it will. Wireless technology consultant Richard Crone called the proposed payment technology a “game-changer” that will fit naturally into the mobile billing industry, as America’s carriers are “the biggest recurring billers in every market” and they are “experts at processing payments.”

What Visa and MasterCard stand to lose

Visa and MasterCard combined handled $2.45 trillion of U.S. consumer spending on general-purpose cards in 2009. That’s 82 percent of U.S. spending within that market, according to industry newsletter Nilson Report. That kind of dominance contributed to $3.54 billion operating income for Visa and $2.27 for MasterCard last year. ATM interchange fees (aka swipe fees) on debit card purchases also generate a significant amount of money for banks, as much as $40 billion per year. Smartphone pay won’t completely replace credit cards, as mobile billing won’t necessarily offer revolving credit, but debit cards in particular could be severely damaged. Short term credit such as payday loans could show  significant gains against credit cards, particularly through mobile applications.

Younger consumers leading the charge

A study by Boston-based consulting firm Mercatus LLC indicates that 80 percent of consumers between 18 and 34 years of age are ready to begin using smartphone pay and similar mobile financial services. There are retail barriers that must be overcome first, according to the Federal Reserve Bank of Boston, but there would also be incentives. According to Bloomberg, it costs retailers approximately $200 for each credit card reader. If smartphone pay becomes universal, that would save retailers money and only cost smartphone manufacturers another $10 to $15 per handset. Retailers would also likely be able to send rewards and other information directly to consumers via the smartphone pay interface.

Sources:

Bloomberg

Federal Reserve Bank of Boston

Your smartphone can also serve as a retail credit card terminal

Is the iPhone 4 headed to T-Mobile? This celebrity spokeswoman won't say. (Photo Credit: Nhy Nguyen/Flickr/CC BY-SA)

Apple may not be recalling the iPhone 4, but it certainly isn’t because the company is strapped for cash. Its profit in fiscal third quarter 2010, per PC Magazine, was massive thanks to the iPad. Apple made $3.25 billion net profit on revenue of $15.7 billion. Yet that may not even be the most explosive news coming out of the land of Steve Jobs. If the Cult of Mac’s “highly placed source” is accurate, T-Mobile may begin selling the iPhone 4 by third quarter 2010. PC World writes that talks are far along between Apple and the carrier, and that there’s an “80 percent chance” this will happen in two months.

iPhone 4 would make T-Mobile a heavyweight

Currently the fourth-largest carrier in the U.S., T-Mobile would certainly vault over AT&T, Verizon and Sprint if the iPhone 4 deal happens. According to PC World, there could be a major stumbling block regarding T-Mobile’s 3G frequencies. As the carrier uses a non-standard band (1700/2100 MHz) and it is unknown whether the iPhone 4 will work at the lower end of T-Mobile’s frequency range, there could be major reception issues.

Another day, another iPhone 4 rumor

PC World reminds us that Cult of Mac’s predictions don’t always stick, so don’t get too excited yet. Considering the network cap problems Apple has encountered with AT&T (and the relative animosity Verizon has shown toward Steve Jobs and crew), it could be that T-Mobile has the bandwidth to spare for iPhone users and an as-yet clean and clear relationship with Apple. Another plus on T-Mobile’s side is that Apple already works with its parent company (Deustche Telekom) in Europe.

Smartphone owners: would you make the jump to T-Mobile?

If T-Mobile does indeed enter a partnership with Apple, the pool won’t stay sparsely populated for long. Antenna issues aside, iPhone 4 remains wildly popular. It is the most serious competition for Droid and other top smartphones. Let us know what you think by sounding off below.

Sources:

PC Magazine

PC World

iPhone happenings, straight from the Techno Buffalo’s mouth

Steve Jobs put the record straight at the Apple press conference, and there will be no iPhone recall. Image from Wikimedia Commons

In the wake of turmoil over a possibly faulty antenna on the iPhone 4.0, an Apple Press Conference was scheduled for today. A potential iPhone recall was on a lot of minds, but there will be no iPhone recall. Instead, iPhone 4.0 owners can sign up to get a free case for their iPhones to fix the antenna problem. Apple CEO Steve Jobs addressed the antenna as well as some other issues at the Apple press conference.

Hardware issues dubbed ‘Antennagate’

A partial transcript is available on the Wall Street Journal website. Steve Jobs began the Apple press conference by referring to the issue as “Antennagate”  and saying the issue is common to all smartphones, not just the iPhone 4.0. He pointed out that other smartphones, like the Blackberry, have the same problem.  Jobs did confess that the iPhone 4.0 dropped more calls than the iPhone 3GS, but the rate at which the new iPhone dropped calls was less than one more per 100 calls than the iPhone 3GS.

What will Apple do about it?

There are bumpers for the phone, but there aren’t enough to go around. Instead, Apple is offering a free case to everyone that owns an iPhone 4.0. The offer will be good until Sept. 30, and anyone who bought bumpers can get a refund for the bumpers and a free case. However, those who bought a case from a third party for iPhone 4.0 won’t get refunds. For the next 30 days, people who still aren’t happy with the iPhone 4.0 with or without the free case from Apple can return the phone for a full refund.

What ‘Antennagate’ was all about

What happened in “Antennagate” was that first, a design flaw common to all smartphones was discovered in the iPhone 4.0.  It drops an almost negligent amount of calls more than the iPhone 3GS. Essentially, what happened was that a small amount of people (just more than 0.5 percent actually complained to Apple about the phone) noticed this flaw. It was then exploited by the media.

Apple is working on fixing it and spent $100 million designing the antenna to begin with. AT&T reported to Apple that less than 2 percent of iPhone 4.0 buyers have returned their phones, compared with 6 percent of iPhone 3GS buyers.

Sources

Wall Street Journal live coverage

Providing your e-mail address to activate your iPad 3G may have turned out to be a very bad idea, thanks to an iPad e-mail leak. Image from Flickr.

An iPad e-mail leak has revealed every single one of more than 114,000 early-adopter iPad e-mail addresses. These e-mail addresses were required for 3G iPad owners to activate their devices. This iPad e-mail leak has compromised not only the e-mail addresses of people like your tech-savvy neighbor down the street but White House Chief of Staff Rahm Emanuel. This information leak not only exposes hundreds of thousands of AT&T customers to security concerns, it raises questions about the exclusive contract between Apple and AT&T.

iPad e-mail leak affects all iPad 3G users

The iPad e-mail leak has, as far as most sources can tell, affected all owners of the iPad 3G. AT&T requires an e-mail address to activate the wireless data capabilities of the $800+ device. On the market for only two months, the iPad 3G has been purchased and activated by more than 114,000 users. Each one of these e-mail addresses is associated with an ICC-ID, an integrated circuit card identifier — essentially, proof of identity of the device. With the ICC-ID and e-mail address, hackers could easily launch a mass attack to gain access to the information contained on the iPad.

Big names affected by the iPad e-mail leak

The iPad e-mail leak affects many people, but there are serious concerns about some of the biggest names. The list of leaked iPad 3G e-mail addresses include William Eldridge, commander of a strategic bomber group in the air force. Hundreds of U.S. Department of Justice, NASA, FCC and Army addresses are included on the list. Federal court system employees, House and Senate staffers, FAA, National Institutes of Health, Citigroup, Microsoft and Dow Jones corporate e-mail addresses were also found. It is certain that some of these companies and agencies have used developers to create extra layers of security; but unlike Android devices, the notoriously closed-loop Apple systems can be difficult to upgrade the security on.

Exposing the iPad e-mail leak

The iPad e-mail leak is based on a vulnerability within the AT&T network that was released by Goatse Security. This security group has revealed security holes in Amazon, Firefox, and Safari in the past. According to Goatse, they used only data and scripts that were publicly available to find the security hole that the iPad e-mail leak exploited. Before going public with the iPad e-mail leak, Goatse notified AT&T, who closed the security hole. AT&T has not yet notified owners of the iPad 3G whose e-mail addresses may have been compromised, two days after they were informed of the security hole.

Questions about the AT&T/Apple Contract

The iPad e-mail leak is just the latest in problems that Apple device users have encountered with AT&T. The carrier, more than anything, has become known for slow networks and dropped calls on the iPhone and iPad. The problems with AT&T’s network have gotten so bad that even Steve Jobs couldn’t get the new iPhone to work during his WWDC presentation. Apple has announced that AT&T has an exclusive contract for their devices for at least a few more years. Given security breaches like this, slow networks and a lack of customer communication, one has to wonder if that contract will be honored.

AT&T's new data plan's success will hinge on the reaction of other carriers. Image from Flickr.

AT&T has announced new data plan pricing for smartphones and tablets that will go into effect on Monday. This new AT&T data plan pricing is intended to help reduce network usage while providing more transparency in the billing process. The real question, though, is whether other wireless carriers will follow suit.

AT&T data plans will eliminate ‘unlimited’

When the iPhone was first introduced on the AT&T network, the one-size-fits-all data plan was a $29.99 a month “unlimited” plan. The definition of “unlimited” however, was sometimes brought into question. Some AT&T customers got huge data-use bills that seemed to indicate there was a limit to network usage that they were not aware of. Some customers have claimed that they had to get no fax payday loans just to pay their bills. Heavy use of the data network has also led to dropped calls and slow data speeds that have been a tough sticking point between the carrier and customers.

The new AT&T data plans

The new data plans revealed by AT&T will have three “levels” of data use. The first will be a $15 plan that will allow 200 mb of data per month. A $25 plan will allow 2 gb of data per month. Tethering, or connecting a laptop to the internet through an iPhone, will be an additional $20 per month. These new AT&T data plans will send a free text message to users when they are approaching their data limit. These data limits will not apply when the smartphone or tablet is being used at a WiFi hotspot – only the 3G network. Users that already have a contract with AT&T will be allowed to keep their “unlimited” plans and pricing, even when renewing their contracts.

Effects of the AT&T data plans

While the new AT&T data plans will reduce cost for light data users, heavy data users will feel the strongest effects. Many wireless carriers and app developers have been working to move streaming video and data-intense applications onto smartphones and tablets. By limiting data use so heavily, AT&T will be limiting the available applications on its 3G or 4G network. The chairman of the FCC has expressed repeated concern over the “bandwidth crisis” that smartphones have created. If other wireless carriers do not follow the AT&T data plan model and limit their data usage, then heavy users will probably just switch carriers. Though demand for wireless data services has increased dramatically in the last few years, capacity is growing at a much slower rate.

Net Neutrality is the idea that all legal internet traffic should be treated equally. Image from Flickr.

Net Neutrality is the idea that all legal internet traffic should be treated equally. The concept of net neutrality seems simple enough, but a recent ruling by a Federal appeals court puts the FCC’s ability to protect net neutrality in question: Can the Federal government  protect net neutrality, or will internet service providers be able to determine which payday loans online web sites users can visit?

Net neutrality ruling strikes down FCC action

The net neutrality case that the Federal appeals court just ruled on is Comcast Corp. v. FCC, 08-1291. In 2008, the Federal Communications Commission sanctioned Comcast Corporation for deliberately slowing internet traffic. Many users, some trying to apply for payday loans no fax, complained to the FCC about the slowdown. The FCC claimed that by slowing internet speeds for high-volume users, Comcast was preventing access. Comcast sued the FCC with the argument that the FCC was stepping over the legal authority given it by congress. The Federal appeals court ruled in Comcast’s favor on April 6.

The legal framework of net neutrality

Currently, net neutrality does not have an enforcement framework in the United States. The Federal Communications Commission does have the legal authority to regulate telecommunications services, which the commission refers to as “Title II” services. However, broadband internet service is currently classified as a “Title I” information service. While President Obama and Congress have discussed creating a new legal framework to protect net neutrality, no specific legislation is currently under consideration.

Arguments against net neutrality

Currently, most large providers are warning the FCC that reclassifying broadband service as Title II would be a “very bad idea.” Threatening years of legal challenges, providers such as Verizon, Comcast and AT&T are speaking out very loudly against net neutrality protections. The basic argument of these service providers is that the government has no business regulating their network management. Each internet service provider is saying that net neutrality actions would illegally violate their right to manage their businesses as they see fit.

How can the FCC protect net neutrality?

The FCC, as well as the Federal government, puts quite a bit of stock in the concept of net neutrality. The National Broadband plan rests heavily on a neutral internet. At this point, the FCC has three options. First, it can classify broadband service as a Title II service. Second, it can ask Congress to present a legal framework for net neutrality. Finally, the FCC can appeal the net neutrality decision handed down today to the Supreme Court.

Sources:

Computer World
Wall Street Journal

Dell was first to bring us Netbooks.

Techies and gadget lovers must feel like their heads are going to explode this week — and the Consumer Electronics Show hasn’t even started yet! This week Google has shaken up the smartphone market big time with the release of Nexus One. The new gadget, which Google is calling a “superphone” is offered at a $350 discount if you get a T-Mobile contract.

It appears AT&T is responding with a resounding “Oh no you di-in’t!” Of course after the release of the Droid, only available with Verizon, and Google’s deal with T-Mobile, I expected AT&T to answer, and here’s what it’s saying: “Dell Mini 3.” No word on the price of this baby yet, so don’t fill out you  pay day loan application just yet.

Oh, just you wait

The Dell Mini 3 is not a brand new smartphone; it has been available in China and Brazil for a few months. Now, it’s the latest player in a game I like to call “Who’s The Smartest of Them All,” which is played in the U.S. and pits smartphones that run on Android processors against each other.

But Dell Mini 3 is only the very first step in AT&T’s game plan for how to combat Droid, Nexus One and all of the other phones Google will be offering through it’s brand new online cell phone store. AT&T says it will introduce five new Android phones in the next few months. Maybe the next few weeks.

Dell Mini 3

The Dell Mini 3 is similar to other smartphones out there, in both looks and operations. It has the same processor as the Droid, and it looks like the Nexus One, if I do say so myself. There’s nothing particularly remarkable about it as far as whether it has something to offer that other phones don’t. But it does run on AT&T’s network and Google’s processor so … there’s that.

As far as what we can expect from the new offerings, there’s not a whole lot of detail yet. From AT&T’s press release:

AT&T today announced plans to launch five new devices from Dell, HTC and Motorola based on the Android platform. The company also announced a major initiative to expand the universe of mobile applications beyond smartphones to more mobile phones – and spur future app development for emerging consumer electronics devices, its U-verse TV platform, and enterprise and small business workplaces.

Clearly,this announcement was just made to keep AT&T in the game, as the only real information is that “Dell Mini 3 is coming to the U.S. … sometime. Soon.”

IPhone image from Flickr.

The Wall Street Journal has reported that online sales of iPhones in New York City have been halted. People who live in New York City can still purchase an iPhone from an AT&T store or an Apple store, but as of right now, you can’t place an online order for an iPhone in New York City.

Not surprisingly, the companies involved are keeping quiet about why you can’t order an iPhone in New York City. It is also not surprising that the companies are taking steps to slow sales in the most populated city in the country. Don’t worry, you can still get payday loans with no credit check online.

Theories about the iPhone in New York City

It’s no secret that there’s a limited supply of bandwidth out there, and sometimes it is impossible to be prepared for how the population will respond to new technology. The Wall Street Journal says:

Although AT&T has beefed up its network, complaints about dropped calls and Internet interruptions seemed to have increased.

This can’t be good news for AT&T, which has recently gotten into a public, heated rivalry with other networks, and the iPhone is battling it out with other smartphones.

Smartphone wars

Verizon recently marketed its Droid phones, which use the Google Android operating system, as a superior alternative to the iPhone. Furthermore, Verizon commercials have incorporated 3G coverage maps attempting to show that Verizon’s coverage area is better than AT&T’s. The message wasn’t lost on consumers, and it certainly wasn’t lost on AT&T, which fired back with ads that compare iPhone functions with Droid and other smartphone functions.

The AT&T ads emphasize the fact that users can use the Internet without interrupting a call and vice versa. I can’t say this feature, which they are using as their primary marketing stragegy, is the actual cause of the fact that you can’t order an iPhone in New York City. The companies involved could confirm or deny this suspicion, but don’t worry, they won’t.

How long are online sales suspended in NYC?

One AT&T customer service representative blamed the online sales suspension on the fact that there aren’t enough cell phone towers in New York City to support iPhones. Others have said it was because of excess fraud. But the official word from AT&T was “We periodically modify our promotion and distribution channels.”

There is no word on when people in New York City can order iPhones online again. For now, when someone uses a New York City ZIP code when trying to order an iPhone from the AT&T store online, the response is “There are no phones and devices that match your search criteria.” Though that bit about “modifying distribution channels” indicates that this could be a permanent change, I highly doubt it. However, if the true cause of suspending sales of iPhones in New York City is that the infrastructure to support them simply isn’t there yet, this could take a long time to fix.

In many countries outside the U.S., cell phones have replaced credit cards. In Japan and Finland, for example, travelers rarely carry cash, checks or credit cards, but rather swipe their phones or send text messages to pay for train rides.

In the U.S., the cell phone hasn’t yet reached this capability, mostly because of carriers who cannot settle on how that service’s revenues would be divided amongst each company. One up-and-coming company, however, thinks it just may have a handle on how to make it work. Paymo is a mobile payment network and it has so far confirmed deals with AT&T, T-Mobile, Cellular One and Virgin Mobile, allowing consumers to make online purchases with their phones.

Their business model is quick and simple. When a consumer decides to purchase an item, they click on a Paymo logo, much like the PayPal logo. This takes them to the online checkout area where they enter their cell phone number. A text is sent via Paymo to their cell phone asking for a verification on the purchase. Once the customer replies, the transaction is verified and completed. The item will then be either deducted from the owner’s prepaid account or be itemized on their next cell phone bill.

Paymo in the U.S.

Paymo is used in about 45 countries, and it’s slowly working its way into the online business world. Credit card companies, banks and mobile carriers have tried in the past to work out a deal that allows for online pay tied to cell phone accounts. So far two methods have been tried in the U.S. The first allows customers to wave their phones in front of a reader for payment. The second allows them to pay via a text message confirmation process. Neither one has taken off with the American public.

Paymo, a San Francisco-based company, still thinks paying with cell phones will become mainstream in the U.S. once people understand its true value. CEO and co-founder Paul McGuire stated, “Paymo will succeed by serving cell phone and website users who don’t have credit cards. They want to buy stuff online but need an easy way to pay. And what better way than via a mobile-phone account?”

Will cell phone companies bite?

Most cell phone companies supplement their phone packages with additional items, such as ringtones, wallpapers, games, news, e-mail retrieval and web-browsing. Because of the economy, they are looking for more revenue-building ways to bring services to consumers.

Paymo believes it has the perfect solution and is hoping to woo cell phone companies into using their product. With Paymo’s proposal, cell phone carriers would walk away with 20-50percent of revenues generated by online sales. The remainder would go to the retailer and Paymo.

Paymo is no longer alone

Although Paymo does have an aggressive pay structure, it is not alone in trying to break into the cell phone payment market. PayPal has been working on the same thing for a few years now and met with the same success rate. Zong and Mobilcash are two more companies working hard make cell phones replace credit cards. With this type of competition it will be hard for Paymo to gain its market share in the US.

Image from Flikr.

After AT&T delayed the launch of the iPhone multimedia messaging service (iPhone MMS) multiple times, the new, free feature will finally be available on iPhone 3G and iPhone 3GS. If you have an iPhone 2G or iPhone 1G, the wait is not over for you. There’s no word on when iPhone MMS will be available for those models. It might take as long as reaching tax resolution or longer.

PC World reports that AT&T, the exclusive iPhone carrier, would not allow iPhone MMS to launch until the network was ready to handle the additional traffic. PC World also thinks that this was an unnecessary precaution because “the service in question has been out for years on other handsets and hasn’t exactly taken the mobile world by storm.”

What is iPhone MMS?

The new iPhone MMS feature allows users to send photos, audio recordings, video clips or contact information and has a short messaging service. AT&T expects iPhone MMS to create record traffic volumes. In June, when Apple announce the iPhone MMS was ready, AT&T was concerned that it would crash the network.

While the same service on other phones has not generated groundbreaking levels of traffic, in my experience iPhone users have a tendency to take advantage of every feature they can, whether they need to or not.

Analyzing iPhone owners

Why do I think that iPhone users will take advantage of iPhone MMS more often than others have used multimedia messaging services? Well, let’s start with the fact that I at any given moment, in any place, I can tell you which of the people who I know in the room have an iPhone.

I do not know what type of phone anyone else has. I’m not even sure what type of phone my boyfriend has. But I know who has an iPhone. That is because iPhone users are constantly pulling out their phones to play games, look at pictures and most often to show people something after saying “Hey, check out how cool this is.” So my guess is that AT&T traffic will indeed spike because iPhone users will want to use iPhone MMS just because they can.

The whole truth

Is it fair for me to stereotype iPhone users? Maybe not. But any iPhone users reading this already know the truth: I taunt because I am jealous. I can’t tell you how many times I have been sitting on a bus or in a waiting room or some other situation where I really wished I could listen to music or play a game or surf the Internet on my phone.

If I had an iPhone, I would probably use iPhone MMS. As it is, I often send my friends songs through instant messaging services online. I am not much of a picture-taker, but I think if I had a device that could both take photos and send them to people that would probably change. I would probably use it on a daily basis, just to send my friends photos with messages attached that said things like “Look at this cute puppy!” or “Get a load of this guy’s hat.”

I am aware of the fact that this is what I would use my iPhone for, which is why I haven’t sprang for one yet. Someday, though, I’m sure I’ll realize I cannot live without being connected to the internet at all time. I’m already pretty close.

Get made and "Take Back the Beep!" (Photo: mypre.com)

The first time I signed up for cellular telephone service, it was with Cingular. I wanted two phones so that my fiancée and I could communicate during our wedding planning phase, so I signed up for a family plan with shared minutes. At first the bills were reasonable, but soon they began to balloon out of control. It was at that point that I realized that while cellular-to-cellular calls between us were free, checking the massive number of voice mails we left for each other throughout the day were not. Leaving them, retrieving them and listening to them all counted against our monthly allotment of minutes, and we began to run over frequently. I even used a cash advance or short term loan on occasion to help hold the line between paydays.

But did you know that even the automated 15-second instructions on how to use voice mail counts against your minutes? Consider how often you’ve sat through that automated voice; it adds up to a lot over the life of a two-year contract. This is something customers from all the major carriers have put up with for a while, to their detriment. Now, with movements like “Take Back the Beep” in full swing behind them, consumers are standing up to the bloated, greed-driven wireless carriers like AT&T, Verizon, T-Mobile and others. Progress has come in small spurts, but Take Back the Beep founder (and technology writer) David Pogue is enthusiastic that the response the campaign has received from consumers thus far will make it impossible for the carriers to ignore.

How you can get involved

According to Pogue, there have been over 28,000 blogs written on the topic of Take Back the Beep. He has done numerous radio and podcast interviews on the topic, and thanks to the effectiveness of this consumer information campaign, America’s big four carriers have been flooded with “thousands and thousands” of complaints. For those of you who would like to contribute to the cause, here’s how to get in touch with your carrier:

• Verizon: Post a complaint @ http://bit.ly/FJncH
• AT&T: Direct E-mail complaints to customerissues@attnews.us
• T-Mobile: Post a complaint @ http://bit.ly/2rKy0u
• Sprint: Mission accomplished! The voice can be disabled easily by the consumer.

We all know how to use voice mail

So please stop insulting our intelligence with needless directions. We refuse to pay for it any more.

Three of the four big wireless carriers have responded to the Take Back the Beep campaign so far. That’s one too few, Verizon. Get on the stick and do what’s right. You’re confirming in my mind why it was a good idea to leave you for a different carrier – that, and I wanted an iPhone.

AT&T wants to offer visual voicemail to all handsets

Speaking of the iPhone, here’s how AT&T responded to Take Back the Beep. “We are going to make some changes” is their general statement. They have made an E-mail address available, and that in box has been full most of the time. Executive Director of Media Relations Mark Siegel told Pogue that the overwhelming response has made them “look again” at how they handle voice mail. For iPhone customers, visual voice mail eliminates the automated introduction, but the majority of AT&T customers do not have that expensive smart phone. Thus, they have to deal with the air time waster. Siegel’s response to this is that visual voice mail will be made available on other devices in the near future. Until then, they’re working on “how to shorten” the message.

Mind you, if you are aware of the cellular carrier for the person you’re calling, there is a key you can press to skip the automated instructions. If they’re AT&T or T-Mobile, hit #. For Verizon, press *. For Sprint, the magic key is the number 1. However, you won’t know most of the time which carrier the person you’re calling uses, so a universal standard would have been nice.

T-Mobile is paying attention

The response from T-Mobile has been less illuminating, but at least there has been a response (get it, Verizon?) According to T-Mobile’s media relations machine, “T-Mobile is always looking for ways to improve our customers’ experience, and this issue has our attention. We appreciate the feedback we’ve received from our customers, and these comments are being taken into consideration in our planning.”

Even though I’m not a T-Mobile customer (as much as I’m a fan of Catherine Zeta Jones), I’d still like to hear more than the typical PR claptrap. AT&T has set the bar high here, so get moving, T-Mobile.

But not as high as Sprint

Why is that? Because Sprint has actually given their customers what they want. What a concept! And Take Back the Beep wasn’t even necessary, as the option to disable the voice has already been around for some time. According to Pogue, it’s very easy to do. Sprint customers, make haste and do this:

1. Access your voice mail box.
2. Press 3 for personal options.
3. Press 2 for greetings.
4. Press 1 to change your personal greeting.
5. Press 3 to add or remove the caller instructions.
6. Follow the prompts to turn instructions on or off.

And the Verizon guy remains silent

Verizon’s PR contact hasn’t responded to my request for a progress report.

What your cellular carrier wants from you (Photo: flickr.com)

Apparently a media relations guy for Verizon said in an ABC News interview that customers can turn the automated voice off. Unfortunately, that’s a lie. I don’t imagine that someone Verizon entrusts to speak to the media is ignorant of product features, so the representative lied. Pogue called him on it via Twitter, and the representative claimed he was “misquoted.” What he supposedly was getting at is that voice mail can be turned off completely.

Say what?

Pogue shares our outrage over such a non-intuitive, arrogant response by asking us “Isn’t that like saying, ‘My son bites his nails, so let’s chop off his hands?’” I say that Verizon is due for a good chopping.

Yet to their credit, Verizon is responding to every single complaint that they receive about the Take Back the Beep campaign. However, the response is canned: “The voice mail instructions are there to assist the many callers who may be unfamiliar with the correct prompts.”

Thus, they attempt to justify their greed

I’m very happy I’m no longer one of your customers, Verizon. We all know the “wait ’til the beep” routine. You don’t need to charge us for the hand-holding. I hope you receive virtual truckloads of complaints and lose customers until you become customer friendly. You exist because of us; we do not use your services simply because you exist. Please your customer base or face the flames at your peril.

Take action today, consumers!

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Personal Money Market recommends you take action and give your cellular provider a piece of your mind. Even if you aren’t a customer but feel strongly about this issue, send an E-mail or leave a post letting them know. The higher the flood waters, the less chance there will be that the fat cats find dry land. And you know how much cats hate water… as much as the Center for Responsible Lending loves a cash advance or short term loan for life’s little beeps. If you want to keep your budget dry, click the button to apply.

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