Waiting patiently...

Well it's iPhone 3GS launch day and as expected, there aren't throngs of people queuing down at the Apple or O2 stores here in the UK.

What a shocker - NOT!

With the pricing debacle, the large numbers of existing 3G users locked into a contract and the ability to pre-order for home delivery, long queues and the usual buzz about the launch was never going to happen, at least, not to the extent of the previous iPhone launches.

As an aside, I witnessed first hand the huge leap in usability the new 3.0 software has proven to be.

I'm one of those who decided to pre-order and first thing this morning, I had to nip out to the Doctors for a routine blood test. So, sitting in the waiting room with 10 minutes to kill, I did my usual thing of whipping out my iPhone 3G and checking Tweetie.

I casually tweeted that I wondered if my new phone would be delivered today. I've ordered it from the CarPhone Warehouse and other than an order confirmation, I'd received no word on delivery.

A minute or two later, I received a tweet back with a link to the CarPhone WareHouse tracking page - excellent (Thanks @HadleyHope)

Now to find the order number?

Switched over to my email client and realised that the order confirmation was in an Archive mailbox on the MobileMe service. No problem! Using 3.0 I can access that mailbox and enter a search term. 3.0 couldn't find it on the cached version of the phone and asked if I'd like to search the server. Result!

A few seconds later, the email was there in front of me.

The order number was only 8 or 9 digits but with my short term memory being what it is (!), a quick tap and I was able to copy the number using 3.0, switch back over to Safari and paste it in.

The order tracking details popped up, along with a link to the carrier.

Tapped on the link and was sent over to the carriers website with the tracking number auto filled and bingo! The iPhone was out for delivery today.

So that's just two elements of the new 3.0 release that helped me out here but they make the iPhone just so much more useable.

Looking forward to seeing the performance increases on the new iPhone 3G S when it arrives later today.

BTW I didn't faint during the blood test - I was a brave boy :-)

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The iPhone Tethering Epiphany....

By now, most iPhone 3G users will have been able to download the new iPhone 3.0 OS upgrade. Contained within the upgrade is a feature to allow the iPhone to act as a Internet connection to your Mac, otherwise known as "Internet Tethering"

Apple have done a great job in implementing this feature, allowing you to use either Bluetooth or USB to connect your Mac to the iPhone and then use the iPhones internet connection to view your email, access Twitter, etc. It's all pretty seamless.

Plus, we're fortunate to have this switched on from day one over here in the UK, unlike our friends in the US who are having to wait for AT&T to get their act together.

However, there is a fly in the ointment - the cost!

Now the iPhone comes with an unlimited data plan included as part of the contract. This was a masterstroke by Apple when negotiating with deals with the carriers for the exclusivity of the iPhone as without unlimited data, the iPhone would not have taken off as well as it has. Sure, there have been other "internet enabled" phones before, but even if you could use the internet on the phone, it was an appalling user experience, plus you needed to be constantly aware of the charges you were building up.

The iPhone was the first phone with a credible user experience which actually made using the Internet on a mobile device easy. It's the first phone where you truly do have the Internet in your pocket, and the removal of the barrier of worrying about data charges just enhances that experience.

The problem with the iPhone 3.0 is that "Internet Tethering" is seen as an extra by most of the carriers (kudos for Rogers in Canada for not charging) and is currently being priced separately as a bolt on to the existing iPhone contracts

Over here in the UK, O2 are charging:

As pointed out in the comments, those prices are for Business users, it's even more expensive for normal users (Thanks Peter)

That's quite an expensive proposition if like me, I'd only really use tethering occasionally. Heck, I only use the thing as a phone occasionally and I'm already being charged £35 per month for minutes I don't use.

To wonder why they've done this (other than the knee jerk reaction of it being a money grab) you have to take the historical perspective. Back in the early days of "internet enabled" phones, people really didn't use the phone for internet access, it was just too painful. But hook up a computer and it worked. The metered data charges were still exorbitant, but we really didn't know any different and besides, it was pretty cutting edge!

Spring forward to today and we have 3G with pretty fast connection speeds and unlimited data on our phones at an all inclusive price.

So what about this epiphany?

Well, a couple of days ago I was in Starbucks with my laptop with the intention of doing an hours work. I fired up the browser to check out the options for wifi and was met with a demand for £4.95 for 90 minutes.

No way!

I took out my iPhone, checked a few messages, checked a few tweets and then carried on working on my laptop. After I'd finished (and after moaning about the cost via a Tweet) someone asked why I hadn't tried tethering. I'd never even thought to try!

After mulling this option over for a day or two, I realised that, even if I had been able to use tethering to access the internet via my iPhone, my usage would have been exactly the same. I would have accessed the same services via my tethered laptop, exactly as I'd done on my iPhone.

Exactly the same.

In fact, I'd even go so far as to say I would have used the exact same amount of data, regardless if I was using the iPhone on its own, or using the laptop tethered to the iPhone.

Yet, 02 want to charge me a minimum of £9.99 or up to £23.88 per month extra for the privilege.

But I thought on further.

It's possible that tethering could actually result in less data being used in some cases. Let's say:

Scenario 1: You're sitting in the coffee shop with your iPhone and your laptop with no tethering. So you pop out your iPhone and spend half an hour on line. No point getting out the laptop is there.

Scenario 2: You're sitting in the coffee shop with your iPhone and your laptop with tethering. So you pop out your laptop and spend 10 minutes online and then realise that you may as well get on with that proposal or presentation for a bit, seeing as you've got your laptop open.

OK, a bit simplified but it's possible! In fact, on my Starbucks visit, I spent more time online on the iPhone than I wanted to, had the laptop been tethered, I probably would not have.

The bottom line is with tethering, I wouldn't be using any additional data over and above what I would have used with the iPhone, in fact, I might even use less.

The old model of charging for tethering based on usage is just that, an old model, valid when data was metered. It makes no sense when used on the iPhone with an unlimited data plan.

So I guess my knee jerk reaction was correct - it's simply a money grab.

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Changed my mind....

Been a strange week with regards to the iPhone 3G S

If you read my previous post, you'll assume that I'd pretty much decided to go with the PAYG option to save myself a few quid.

Well this week I very nearly decided not to upgrade at all. With all the discussions and upset over the pricing of the new iPhone, I really felt like I couldn't be bothered. A couple of podcasts later though, and I'm fired up again and will in fact be getting a 32GB with a standard 18 month plan.

Why?

Well if we put aside the reason for buying a new phone in the first place (it's my job, etc...) I sort of decided to put up with the extra expense as an insurance for the future. I know you have to configure the iPhone differently for PAYG and I just felt that it's possible I may miss out on some features when traveling. Plus I'm wondering if O2 may come to their senses in the future about tethering and implement some reasonable charging or even some sort of PAYG option just for tethering. What I'd really like to see is the ability to offset unused Phone minutes in exchange for tethered data - that would be perfect for me.

In fact, let me just Tweet that!

Right, done. - http://twitter.com/DonMcAllister/status/2175581591

One thing I've done differently this year is to pre-order from the CarPhone Warehouse.

I really couldn't cope with the palaver of dealing with the O2 store again, after queuing up for an hour or two only to see their network go into meltdown at 9am. Hopefully, I'll get the phone on Friday but this time round, I'm not that bothered if it takes an extra couple of days. Actually, I'm wondering if there will be much in the way of queues anywhere this year. The backlash over the pricing may well suppress the demand this time round, especially here in the UK, so expect much doom and gloom in the Press about the lack of buzz this time round.

Footnote: If anyone is interested, lost another 3lbs this week on my sensible eating plan. That brings me down to 14st 4lbs (200lbs or 91Kgs) Apparently, my target weight is 12st 4lbs so I'm estimating on loosing approx 2lbs per week (ManMania9 weeks excluded) so it could take me three months or so to get there. It's really no big deal at the moment and isn't causing me any grief, just eating sensibly and upped my exercise.

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The aftermath...

OK, So I was wrong about the new iPhone and they did announce it at WWDC 09. I have to say, they left it so late that I did think they might have missed it!

But it will be with us next week and yes, of course I want one!

Lots of gnashing of teeth and lots of upset people over on twitter about the pricing and lack of upgrade pricing here in the UK.

First off, the tethering pricing is just ridiculous, really. Totally off the wall.

Secondly, there is no subsidised upgrade path for existing users - Ouch!

Basically, you need to pay off your existing contact on the 3G iphone (in my case £245) then buy a new phone and a new 18 month or 12 month contract. That would take the cost of the new 32GB iPhone 3GS to over £500 plus £30 per month.

The problem here is that O2 took the hit with the upgrade for existing users from the 1st Gen iPhone to the 3G. I presume the numbers don't work out to do it a second time, so although it looks horrendous, a contract is a contract and there's not a lot you can do about it. In hindsight, perhaps it would have been better to offer 12 month contracts knowing that a new iPhone would be launched in 2009 (well a pretty safe bet!) Had a 12 month contract been available, I probably would have gone for that.

The experience has influenced what I'll be doing about the new iPhone 3GS.

Of course, I need one for my show (no I do, really), so it's a legitimate business expense (phew!) so I could write off the existing contract and let the business pay for it. It would make it feel better to say it's not actually a phone but my mobile Mac. I'd feel better paying £500 for a state of the art mobile internet device (which really what it is). The thing that really grates is having to take out another 18 month contract for £30 per month. I just don't use the phone that much, and what happens in another 12 months time?

The next iPhone is released with HD support, front facing camera, built in iChat, 802.11n, etc, etc.

So we'll be in the same boat again!

Some figures on the new 32GB iPhone 3GS and my options

Terminate contract and Pay Monthly = £245 + 274.23 + 18 x £29.38 = £1048.07 over 18 months

OMG!!!

Now luckily, I have an escape route.

My lad is off to University in September and will need a decent phone. So he will be the lucky recipient of my iPhone 3G with another 5 months contract left on it. So I won't cancel the contract. Yes, I'll still have to pay the £245 over this time but at least it will be getting used, I'll not be just giving O2 a nice present! This leaves me with two options for buying a new iPhone:

Pay Monthly = £274.23 + 18 x £29.38 = £803.07 over 18 months

Pay As You Go = £538.30 over 12 months

PAYG also includes 12 months unlimited web and Wifi. £25 worth of calls will probably last me a couple of months! There's no visual voicemail or call merging but that's no big deal for me, I hardly use it as a phone. There is also no Internet tethering but at the current prices, who cares.

So in 12 months, when the next phone is available, I'll have no contract and can upgrade with no penalties.

So in my eyes, the PAYG deal is the better deal for me!

What have I missed?

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