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

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

T-Mobile is offering a free phone promotion on June 19, and it reportedly includes Android phones. Image from Flickr.

The rumor mill is running high speed about the possibility of a T-Mobile free phone on June 19. The cell phone company has been gearing up for a big sale for the last few weeks, but what exactly the promotion might be has been kept quiet. A leaked commercial script and other indications seem to say that the sale will be a T-Mobile free phone. The T-Mobile free phone comes with a few caveats, however.

T-Mobile free phone promotion

The T-Mobile free phone promotion seems to be set to go live on June 19. The script for the commercial was obtained by T-Mobile gossip site TMONews. The T-Mobile commercial script seems entirely legitimate and highlights the T-Mobile free phone promotion. Basically, the commercial script says any phone in the store is free with a family plan. Supporting evidence includes that all T-Mobile stores have been informed they will be opening two hours early on July 19 in preparation for a “promotion” with “details to be provided soon.”

The details of the T-Mobile free phone sale

The T-Mobile free phone sale offers every phone in the store for free. T-Mobile free phones are not being handed out entirely without caveat, though. The T-Mobile free phone will be handed out when someone signs up for a family plan with T-Mobile. Anyone who “switches” to a family plan will get a T-Mobile free phone – including the Android smartphones that run apps developed for the platform. There is no word yet on whether individuals already on a family plan can upgrade their plans to get a free phone.

Cost comparison for the T-Mobile free phone sale

Getting a T-Mobile free phone on June 19 seems like a great idea. Currently, with-contract phone prices at T-Mobile run anywhere from free to $199.99. T-Mobile also has a monthly payment option for its most expensive phone — the HTC HD2 — and it is $62.50 per month. If you are already considering switching to a family plan, then the T-Mobile free phone sale could definitely save you a few hundred dollars. Keep in mind, however, that even the least expensive family-share plan on T-Mobile is $60 a month, and a family-share plan on T-Mobile that has smartphone data can be as expensive as $140 a month. T-Mobile, in general, has some of the least expensive cell phone plans available, though its coverage is not as extensive as other carriers. In short, if you are already looking to switch, then the T-Mobile free phone sale would be a great time to do so.

Sources:

TMONews
T-Mobile.com
BillShrink.com

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.

Sidekick image from Wikimedia.

Last week, one of the biggest tech companies in the United States experienced a server outage. Several Sidekick smartphone owners lost personal data such as appointment dates, phone numbers and other information when Microsoft’s server went down a couple of weeks ago.

Data services for Sidekick users whose information was stored on a Danger server went down completely Friday, Oct. 2, and slowly returned over the weekend. Three days after the server outage, Microsoft sent a message to users that said “Affected customers should not remove or ‘hard reset’ their device, doing so may cause Address Book and Calendar information to be lost.”

Woman sues over lost data

Naturally, for many, it was too late. All the guaranteed payday loans in the world can’t make a person’s digital contact list reappear, and an Atlanta woman has filed a class-action lawsuit against Microsoft and Sidekick maker T-Mobile, saying:

Defendants negligently failed to invest the resources, including hardware, software, procedures, maintenance, security, back up procedures, and the training and testing necessary to insure that the functions and operations Defendants assumed would operate to permit Plaintiff and the members of the Class to access and keep safe and secure that data they entrusted to Defendants.

The woman who filed the suit is Maureen Thompson from Atlanta. She says her daughter, an aspiring singer and model, lost appointments, business contacts and song lyrics she had stored on her phone. She filed the lawsuit in U.S. District Court for the Northern District of California and invited any other negatively affected customers who wished to seek damages to join.

Microsoft’s predicament

Microsoft has managed to create products and services that people “need,” which has made the company very, very rich. But as we learned from Spider-Man, “With great power comes great responsibility.”

Microsoft’s ability to develop products that people rely heavily on has made it one of the most powerful companies in the world. Microsoft and other high-tech companies have completely changed the way people conduct business and communicate. I think this lawsuit is going to be tough for Microsoft and T-Mobile, because their only defense will be “You shouldn’t have counted on us.” Not good PR. T-Mobile has issued statements saying the server outage was all Microsoft’s fault.

Will suit be silenced with a settlement?

Because of the damage a trial could do to Microsoft’s reputation, I predict the company will settle the lawsuit out of court. T-Mobile already has offered Sidekick users a free month of service and a $100 gift card. Because the server outage was Microsoft’s fault, T-Mobile might end up getting off the hook.

However, if it’s discovered that the hardware was responsible for data loss or customers were led to believe that the hardware would provide data backup, T-Mobile could end up having to pay damages as well. Both companies can easily afford to pay out-of-court damage settlements to customers, but I don’t think they can afford the cost of the public viewing them as unreliable.

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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