iPhone service pricing: Verizon vs. AT&T (FAQ)

The long-awaited launch of the Verizon WirelessiPhone is almost here, so how much will Verizon charge new iPhone users on its network?

When Verizon Wireless first announced a couple of weeks ago it would begin selling the CDMA version of the iPhone, the company didn't disclose pricing of the service plans. And for the past two weeks, the company has been rather cagey about talking specifics of the pricing plan.

Even though Verizon has danced around the idea of offering usage-based billing with various pricing tiers for months, the company has now revealed that it will charge iPhone subscribers the same price it's been charging other smartphone customers.

The news has left many would-beVerizon iPhone customers pondering what they should do. The Verizon iPhone that goes on sale February 10 is the same model that Apple launched in June 2010 on AT&T. Most of the features are the same. The networks are different, which will be the deciding factor for many customers. But for bargain-hunters looking for the best deal in terms of service for the iPhone, Verizon isn't giving them much to get excited about.

So far, it doesn't appear that Verizon is taking any aggressive steps in pricing to win customers from AT&T, which has been the only carrier in the U.S. to offer the iPhone since it was launched in 2007. But the carrier is hoping to entice some consumers by continuing to offer its unlimited data plan for $29.99 a month, at least for now.

To help iPhone fans get a better handle on service pricing from Verizon and AT&T for the iPhone, CNET has put together this FAQ.

How much will it cost me per month to own the Verizon iPhone?
Your individual monthly bill will depend on what features you add. But for now Verizon plans to charge iPhone users the same fees it's charging its other smartphone customers. So this means you will have the choice between different voice plans that range in price from $39.99 for 450 minutes of voice time to $69.99 for unlimited voice. Verizon also offers texting plans, including a $20 unlimited texting plan.

The data plan, which is required when you subscribe to any Verizon smartphone, costs $29.99 per month. And it is unlimited. Verizon caps data usage on its wireless data cards that are used to connect laptops to the Internet. And it also applies a data cap on devices that connect to its network via a MiFi device. But for pure smartphone Internet data usage, such as subscribers using the iPhone, the service is considered unlimited. So there are no hidden overage charges from Verizon when using an unlimited data service on your smarpthone in the U.S.

Didn't Verizon offer a cheaper data plan for smarpthones that only cost $15? What happened to that?
Verizon has eliminated the $15 a month plan that offered 150MB of data per month. The company said that this service, which it introduced in October last year, was a promotion. That said, the company has indicated that it will offer tiered services in the future. So perhaps it will change the amount of data or the price tag in a future offering.

How does AT&T's iPhone service compare in price to what Verizon will offer with the iPhone?
In terms of voice services, AT&T and Verizon offer almost the exact same plans that range in price from $39.99 to $69.99 a month for 450 minutes to unlimited, respectively. AT&T also offers texting options, which include a $20 a month unlimited texting plan.

Where the price differs between the two service providers is in data. AT&T no longer offers an unlimited data plan for new smartphone customers, including new iPhone customers. Instead, new customers can choose between a $25 a month plan that offers 2GB of data and a $15 a month plan that offers 200MB of data.

What about tethering? How much does it cost from either AT&T or Verizon?
Each carrier offers tethering. And they each charge $20 extra a month to use the iPhone or any smartphone as a modem to connect at least one other device to the Internet. But beyond the basic prices, the plans work very differently and that can factor into the overall cost of the service.

That sounds complicated. Can you explain how Verizon prices the tethering plan for the iPhone?
It is sort of complicated. So the way it works for Verizon is that a customer who wants to tether can pay $20 on top of the $30 data fee for the ability to use their iPhone as a modem. The added benefit of Verizon's tethering plan is that turns the iPhone into a Wi-Fi router, and you can connect up to 5 devices to the Internet via the iPhone. The $20 additional fee will give you 2GB of data that is separate from the unlimited data that you can use when using your iPhone as an iPhone. But if you go over the 2GB cap, Verizon charges an additional $20 for every 1GB that you use over the cap.

How is this priced differently from the tethering feature that AT&T offers on the iPhone? Can the AT&T iPhone be used as a hot spot, too?
AT&T offers the ability to turn the iPhone and other smartphones into a modem to connect one other device to the Internet. But it does not turn it into a Wi-Fi hot spot, like the Verizon iPhone does.

Like Verizon, subscribers to the service must pay an extra $20 a month on top of the $25 2GB a month data fee.

But one key difference is that 2GB of data usage is for both regular iPhone data usage and also any data usage incurred by a device connected through the iPhone. This means it's very easy to eat through the allotted data on this plan. But the overage charge is cheaper than Verizon's. It's only $10 extra for an additional 1GB of data if you exceed the 2GB limit.

I've heard that Verizon is only offering the unlimited data plan for the iPhone on a limited basis now. When will they stop offering limited data plans?
You are correct. Verizon representatives have said that the unlimited iPhone data deal will only be offered for a limited time. After that the company plans to offer some kind of tiered service that provides buckets of Gigabytes per month. That's all they are saying at the moment. They haven't said how long the promotion will last or what the new plan will look like in the future. But if you get an unlimited data plan while it's offered, you will have that unlimited plan until your contract expires.

What happens after my contract expires on Verizon? Will I be able to get a new phone and keep my unlimited data plan?
The terms and pricing of your Verizon data plan only apply for as long as you are within your contract period. After your two-year contract expires, you can keep your phone and keep the unlimited data plan. But if you want to upgrade to a new phone, you'll have to sign a new contract and be subject to whatever the new pricing is at that time.

I've heard that if you already have an unlimited data plan on AT&T's network that you get to keep that for life? Is that true?
AT&T has "grandfathered" all its smartphone subscribers who were using its service before June 2010. This means that existing customers on contract can keep the unlimited data plan. And if they don't change their plans, they can keep the unlimited plan as long as they like, even if they upgrade to a new phone. For customers who bought their phones after June 7, 2010, they must choose one of the two plans currently offered.

How important is it to have unlimited data service? Should this even be a factor in my decision between getting the iPhone on Verizon or AT&T?
It depends on how much data you think you will use. But for the average person, the 2GB plan from AT&T offers plenty of data usage each month. And for some very low-data usage customers, AT&T's $15 a month plan with 200MB of data is sufficient. And it offers them a way to save some money. But most people will need the 2GB plan, which at $25 a month is only $5 cheaper than Verizon's current unlimited data plan.

AT&T and Verizon offer tools on their Web sites to help you estimate your data usage.

Who would benefit most from an unlimited data plan?
If you plan to stream a lot of media or use applications that you must constantly refresh then you might benefit from an unlimited data plan. For example, listening to Pandora for three to five hours at a time could be a problem. Watching one or two movies a day could also get your monthly usage close to the 2GB mark. Using Google Maps several hours a day every day could also almost reach that limit. Using Skype as the primary way to call people will also get consumers close to their data limit.

But if you are using these applications in moderation, or if you use them mostly in Wi-Fi hot spots, which does not count toward your data usage totals, then you probably would be fine with AT&T's 2GB service. You can also cut down on your data usage by not installing or upgrading apps over the air. You can upgrade them without consuming wireless data by syncing your phone to your computer.

One thing to keep in mind is that data usage will likely increase as more data-hungry applications are introduced. So for many people, the unlimited data plans are really an insurance policy to guard against potentially heart-stopping data overages at the end of the month.

Correction 3:25 p.m. PT: An earlier version of this story misstated the number of minutes available on Verizon Wireless's $39.99 voice plan.

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Sony bringing PlayStation games to Android

Sony's new Next Generation Portable will be able to play games designed to run on Sony's Android gaming ecosystem.

(Credit:Sony Computer Entertainment)

Sony, apparently eager to profit from the still relatively immature Android gaming market, announced a program to bring olderPlayStation games to Android devices--phones andtablets--that pass the company's certification tests.

The new PlayStation Suite initiative "will not only deliver the PlayStation experience to a wider base of users around the globe, but will also be able to offer game developers and publishers the potential to further expand their business opportunities to these devices," the Sony Computer Entertainment division said today. Also announced is an accompanying developer program to make it easier for programmers to create suitable games.

Sony plans to deliver the first games later this year, but there are a number of qualifiers. First, Sony will begin with original PlayStation 1 games, not the latest titles for newer hardware. Second, phones will require the newest "Gingerbread" release of Android, version 2.3.

And third, hardware makers must sign up for the PlayStation Certified license. Through it, device must pass tests "to ensure the delivery of PlayStation quality experience across various devices" before Sony will grant a license to use the appropriate logo.

And as is increasingly common in the world of Android, there's another app store to reckon with.

Sony "also plans to open PlayStation Store where users will be able to download content in an easy to use environment, directly via the Android based portable devices," Sony said. It's not immediately clear whether that will be the sole means of distribution.

As the developer kit indicates, the program isn't just for legacy PS1 games. And games developed for Sony's Android gaming initiative will also work on the newly announced Next Generation Portable, Sony's successor to the PlayStation Portable.

Also unclear at this stage is which device makers might participate in the licensing program. One obvious one is Sony itself, of course, with its expected Android-based PlayStation phone.

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Nokia profits continue to slide

Nokia's headquarters in Espoo, Finland.

(Credit:Nokia)

Buffeted by ever more intense competition in the mobile phone market, Nokia saw its earnings fall for the final quarter of 2010.

Net profit for the quarter ended December 31 declined 21 percent to 745 million euros ($1.02 billion), compared with 950 million euros in the year-ago quarter. Sales, though, were on the upswing, reaching 12.6 billion euros ($17.2 billion), a gain of 6 percent from 2009's final quarter.

Nokia attributed the downturn to the heated competition in the mobile phone market as well as various component shortages and challenges meeting supply and demand. The company has been facing a rough climate in the high-end smartphone market as it sheds share to rival players such as Apple and Samsung. But it's also been losing out on the low end to mobile phone makers in China and other emerging countries.

For the quarter, Nokia said that its global slice of the mobile phone market dropped to 31 percent, a decline from its 35 percent share in 2009's fourth quarter but a slight gain from a 30 percent share in the third quarter of 2010. The company sold a total of 123.7 million mobile devices in the fourth quarter, down 3 percent from the prior year. But sales volume for converged mobile devices (smartphones and mobile computers) reached 28.3 million units, a jump of 36 percent from a year ago.

The fourth-quarter results also managed to handily beat the forecasts of analysts polled by Dow Jones Newswires, who were anticipating a 45 percent decline in earnings and only a 3 percent gain in sales.

"In Q4 we delivered solid performance across all three of our businesses, and generated outstanding cash flow," CEO Stephen Elop said in the company's earnings report. "Additionally, growth trends in the mobile devices market continue to be encouraging. Yet, Nokia faces some significant challenges in our competitiveness and our execution. In short, the industry changed, and now it's time for Nokia to change faster."

Nokia's profitability was hit hard in 2009, a year when the overall industry was feeling the effects of the global recession. Since then, Nokia has tried to battle back through cost cuts, a reorganization, and staff layoffs.

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Twitter blocked as protests hit Egypt

Egyptian police crack down on second day of protests By the CNN Wire Staff STORY HIGHLIGHTSMain opposition party, the Muslim Brotherhood, says 149 members are arrestedWebsites of 2 newspapers shut down, journalists group saysTwitter is blocked, but some people have used proxies to get information outDemonstrators have been demanding ouster of President Hosni MubarakAre you in Egypt? Share your protest images with CNN iReport.

Cairo, Egypt (CNN) -- Protesters taking to the streets in Egypt on Wednesday felt the wrath of security forces, a day after an unparalleled display of public rage at the government and full-throated cries for the ouster of the longtime president.

Police turned water cannons and tear gas on protesters in the early hours of Wednesday morning to try to break up anti-government demonstrations as the Interior Ministry warned it "will not allow any provocative movement or a protest or rallies or demonstrations."

In the heart of Cairo, people were being beaten with sticks and fists and demonstrators were being dragged away amid tear gas. Witnesses saw security forces harassing journalists and photographers. Demonstrations continued into the nighttime hours.

Egypt's official MENA news agency reported that at least 90 people were detained Wednesday while trying to demonstrate in downtown Cairo's Tahrir Square.

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AT&T iPhone vs. Verizon iPhone: All You Need To Know to Make an Informed Decision

Verizon is essentially selling the same iPhone to its customers as AT&T is (with the exception of the antenna set, obviously), so for iPhone shoppers, the decision of which carrier to go with can be broken down into three questions, so let’s quickly look through them.By Glenn Derene

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Sony reveals PlayStation Suite framework, store for Android gaming

Sony just dropped a bomb on the Japanese stage -- not a single PlayStation Phone, but a PlayStation Phone experience for everybody. The company unveiled a cross-platform software framework called PlayStation Suite, which sounds rather boring in those words, but what it amounts to is an official PlayStation Store filled with games for your Android tablets and cellphones. Sony's starting with an emulator for existing PlayStation Portable titles and is promising an Android game store later this year, but soon it might be much, much more: the company's calling PlayStation Suite a "hardware-neutral" development framework to make games portable for all sorts of handhelds.

Sony will sponsor a first-party licensing and quality-assurance scheme called PlayStation Certified, and provide the marketplace as well, likely hoping to attract major game developers to build top-tier titles for mobile and get a piece of the action too. If your device doesn't have have a pop-out gamepad handy, it looks like PlayStation Suite will emulate touchscreen controls, and you won't necessarily need a phone to get in on the action, as Sony says the next-generation PlayStation Portable will be compatible with games developed for PlayStation Suite right off the bat. Doesn't look like we're getting any details on game prices or compatible devices, but we imagine one particular phone will change all that at Mobile World Congress next month.
Sony reveals PlayStation Suite

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