Choosing a cell phone or handheld device can be a daunting
task. The market has so many smartphone options available and new devices are being
released all the time. Depending upon where you live in the world, there are
completely different ways of making a decision.
When 3G first started becoming available, like with most new
technologies, there were a number of competing formats vying for supremacy.
Unlike the United States (U.S.) who decided to let each phone company choose
their own communications standard, the European Union (EU) decided it would be
better for all cellular carriers to use the same type of network, and settled
on Global System for Mobile Communications (GSM) as the network of choice. In
the U.S., AT&T and T-Mobile also chose to go with GSM, while Verizon and Sprint picked
Code Division Multiple Access (CDMA) as the backend for their 3G network.
Locked in the USA
Due to the various networks deployed throughout the country, along with the
shady tactics of US carriers to sell "locked" versions of their phones, each
phone is usually only compatible with a single cellular provider. U.S. cell
carriers also subsidize the price of phones while locking users into a two year
contract that can only be broken with a ridiculously expensive early
termination fee.
Unlocked in the EU
Purchasing a cell phone overseas is very different than buying one in the U.S.
Because all 3G cell networks in Europe and Asia rely on GSM, users are free to
purchase any handset available in those areas and be confident that it will
function properly on any service they choose. The service provider then gives
the customer a Subscriber Identity Module (SIM) card that can be inserted into
any unlocked GSM phone.
Some customers would rather have the cheaper phone and be
locked to a specific carrier, while others would rather pay the full price for
the phone and have full control over what they do with their device.
 The iPhone Example
No one can argue that Apple's iPhone hasn't been a game changer since it
came to market 3 years ago. AT&T has sold over 15 million devices in the US
alone. Despite the recent onslaught of Android handsets putting a large
dent in Apple's marketshare and outselling iPhones in 2010, the iPhone remains near
the top of the pack (but also below RIM's Blackberry).
The iPhone is the perfect example of the stark differences
between U.S. and EU cell phone policy. It is widely known that in the U.S., iPhones
are currently only available with a contract from AT&T. In Europe however,
the just-released iPhone 4 is available from a multitude of carriers including
O2, Vodaphone, Orange, T-Mobile, SFR, Bouygues Telecom, and SoftBank.
Would you rather have a "locked" phone at a discount and
sign into lengthy contracts, or pay more for your
device up front and have the freedom to do whatever you please with it?
Check back next week for a rundown on the upcoming 4G technologies.
More Info:
Buying the Right GSM Cellular Phone for Europe
Why U.S. Wireless Pricing Sucks
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Re: Choosing a Phone… or a Network?
