Some time ago, when it was first announced the iPhone 3G would be coming to Australia, I quietly (and sometimes publicly) hoped that the 3 network would be the network to launch the iPhone. I thought the only way we’d get decent data charges was if 3 had the phone – given how tremendously awful those charges on other networks are.
As the launch approached, I watched as telco after telco announced that they would be stocking the iPhone: first Vodafone, then Optus, then Telstra.
It’s worse than it appears
As expected, all of them have awful data plans. Optus is by far the most reasonable. Chatting with a friend the other day, they asked “isn’t 500MB enough?” in reference to the Optus plan. Given the pitiful data plans offered by carriers to date, the 500MB option from Optus seems like a good step forward, but I think that for the iPhone this is not enough for all except casual users on a device like the iPhone.
Mark Pesce in a post for the Future of Media blog: iPhail, writes:
“My guesstimate is that the average iPhone user would use somewhere between 2GB and 5GB of mobile data a month – a figure that’s bound to rise as 3G/HSDPA units reach the field.”
Before Mark published his post, I’d come to a similar conclusion. One of the new features of the 3G iPhone is “Mobile Me”, which pushes calendar, contacts and other data to the phone. That will chew up a significant amount of bandwidth. And as Mark points out, that 500MB could pretty easily be chewed up by an avid reader of the SMH.
But I think what has been missed by the telcos is the fact that the iPhone interface, especially the browser and applications (the Apple iPhone App Store also launched yesterda), changes the way iPhone users will use the phone for browsing – increasing it’s use as a truly mobile internet device.
Think about it – using Google Maps on my Sony Ericsson W880i is a “last resort” because of how small the screen is and how difficult it is to input addresses and navigate the maps (I do dig my phone, but that aspect of it is crapful). On the iPhone, I suspect Google Maps will be a “first resort” application – and it will take a fair chunk of data to support that kind of use.
Could Apple have done better?
With the launch of iTunes – which took an enormously long time only to result in a reduced catalogue at higher prices than our U.S. counterparts – Apple Australia demonstrated they had difficulty negotiating the kind of deals that their U.S. compadres could manage.
The inability of Apple to select an exclusive partner (due to legislation restricting the practice) in Australia no doubt didn’t help their cause. But the deals (especially Telstra’s pitiful efforts) are really, really poor – even compared with existing mobile broadband offerings from the same providers. Mark Pesce calls this discrepancy an “Apple tax” – and I think that’s a pretty fair assessment.
So what about 3?
Of course, the glaring omission on that list of telcos is 3. On their blog, 3 claim that Apple are not allowing 3 to carry the iPhone. I find that hard to believe – and I wonder what 3 are asking for that’s holding things up.
But, according to the SMH blogs, word is that Apple and 3 will come to an agreement by August. The general gist of the blog post is “wait” – see what 3 offers. One expects 3’s deal will be stronger than competitors to make up for the fact they missed out on the launch hype. And that, in turn, might apply pressure on other providers to rethink their offerings.
Sounds like good advice to me.
Suckered by the hype
With all this in mind, I’ve been saying to friends for the past few weeks “I’m going to wait a few weeks after the iPhone is launched before I buy one – just to see if there are any issues and to see what 3’s offer is.”
But walking past the lines at the Apple store, Optus and Telstra stores, I got sucked in and decided to at least find out if I could buy an iPhone outright and use it with my current carrier (which is 3).
I went to the Apple store, expecting that as the maker of the device they would be selling the iPhone outright. I waited until the line was a reasonable length and joined in. A friendly Apple staffer was walking the line and asked me “You’re here for the phone?”. Umm, yes. “Do you have 100 points of ID?”. Check. Yep. “OK, so you know we’re not selling the phone outright?”. Umm. No.
I find it quite incredible that Apple are only selling iPhones on plans. But the friendly staffer suggested I try Telstra (across the road) as they were selling it outright.
So across I went, into another line. I get to the (clearly exasperated) staffer. “So what are your plans?”, I ask. He silently hands me a bit of paper (clearly exhausted). Same crap plans. No mention of outright purchase. “So can I buy this outright?” Yes, I’m informed. “But the phone is locked to the Telstra network and we can’t unlock it.” What do you mean, you can’t unlock it? “I don’t know. ‘They’ just said we can’t unlock it. I think it’s something to do with the demand.”
At this point I’d spent enough time in lines to decide I should stick to my original plan and wait for 3’s offering, so I didn’t bother going to Optus and press the issue.
So on the launch day of the iPhone, I was unable to buy one outright… Seems like an odd sales strategy to me. But perhaps, in the end, I’ll be better off being made to wait. One can only hope…
Bad for industry
As an aside, John Allsopp on the Web Directions blog talks about how this affects the web development industry more broadly in iPhone in Australia – now for the bad news.
OK, in the scheme of things, this is not really a huge deal. World hunger is a big deal. But, this is not just the lament of some yuppie who wants a cheaper phone deal. To me this will actually have a huge impact on Australia’s capacity to become a serious player in the next wave of web innovation – mobile web applications and services. People simply won’t use mobile web services (except the “free” access to carriers own services – my bet is that this will come soon enough). Which means little if any incentive for local companies to innovate in this, a space with almost limitless potential. In markets with inexpensive data charges, all the innovation will take place, and when affordable mobile arrives here, those innovators will be ready to swoop on our market, with local companies in no place to play catchup.
I have to agree.