Saturday, January 29, 2011

To iPad or Not to iPad? A Decision By the Numbers

Many business people are dragging around their little iPads lately. Showoffs they are.

I see them at meetings, on the plane. The little case or portfolio that they use allows them to have them at an incline on a table to easily view and type on the cornea display.

Some say that an iPad's more convenient than a laptop...it's lighter, you can access almost any document pending you have the right app, and they're very portable. Alternatively, of course, there is the Mac AirBook...

Options, Options
So what are the options if you're also considering an iPad as part of your mobile toolset?

First of all, you need to decide whether you want the Wi-Fi model, or you want to spring for the more expensive 3G and the required data plan.

According to the Apple iPad page, the Wi-Fi model come in these flavors:
  • 16G for $499
  • 32G for $599
  • 64G for $699
The 3G models come in these flavors:
  • 16G for $629
  • 32G for $729
  • 64G for $829
That's an increase of $130 just so they can insert a 3G chip!

Wi-Fi vs. Data Plan
Wi-Fi models can survive munching off free Wi-Fi from Starbucks, some hotels, and other generous locales. Meanwhile, the 3G will only work wherever the 3G network extends to. But there's also a third option: using the Wi-Fi model with a Mi-Fi card. A Mi-Fi is an intelligent mobile hot spot you can use for a laptop, a tablet, your Wi-Fi enabled smart phone, and more.

When it comes to iPad service providers, you have AT&T and Verizon. I looked at Verizon's iPad page first because they're the recent partners and may have some exciting propositions to compete against old hat AT&T.

The Verizon Proposition
I was surprised to learn that the Verizon iPad page offers only a Wi-Fi version of the iPad (all three memory size offerings) bundled with a Mi-Fi 2200 mobile hotspot.

The plus here, is that their Mi-Fi comes free in this bundle for the price of the iPad at whatever memory tier you're picking, and with a one-year ($70) or two-year (free) contract for the data plan. Typically, the Mi-Fi only goes for $269.99.

So if you go for Verizon's iPad, you get the three memory option iPads at face value, the Mi-Fi hotspot for free, and service at these levels:
  • 1G data for $20 monthly, $20 per GB rate after allowance
  • 3G data for $35 monthly, $20 per GB rate after allowance
  • 5G data for $50 monthly, $20 per GB rate after allowance
  • 10G data for $80 monthly, $20 per GB rate after allowance
Verizon calculates a Gigabyte at 1024 Megabytes. They also estimate that a low-res digital photo ranks at around 500KB.

Is it me or are they making most of their money off of people who don't know how many G they need and end up paying over after the allowance? Hm.

Plus:
  • mobile insurance for $4
  • line activation $35
  • you should add I-Dial if you like roaming
  • tolls, taxes, and surcharges @ anywhere from 5-39% of your monthly bill
  • monthly Federal Universal Service Charge on interstate and international telecom charges @ 15.5% per line
  • monthly regulatory charge up to .02 per line
  • monthly administrative charge up to .06 per line
This information was last updated on the Verizon site on January 1, 2011.

The AT&T Proposition
On the other hand, AT&T seems to be offering the Wi-Fi+3G option in the three memory levels. They seem to assume that if you want the non-3G you'll just step into your nearest Apple store to get the device on your own.

The AT&T Wi-Fi system includes over 200,000 Wi-Fi spot locations. You can find one of their hot spots using their Find an AT&T Hot Spot site.

The AT&T 3G plans come in domestic or international flavors:
Domestic

  • 250MB at $14.99 a month 
  • 2GB at $25 a month
With these two options, you will get an on-screen reminder of when your data is low.

International with usage limit and 30-day expiration

  • 20MB at $24.99
  • 50MB at $59.99
  • 100MB at $119.99
  • 200MB at $199.99

Plans automatically expire when you run out of data or when the 30-day cycle comes to an end. Plans automatically renew every 30-day cycle.

My personal experience with the 3G network under AT&T is that it doesn't typically provide healthy coverage during our vacations. If you're hoping to use the GPS feature to help guide you to and fro your travel itinerary destinations, it can get scary. Have paper maps or a real GPS unit. Let me tell you, it's not a fun surprise to find out your iPhone signal isn't available when you're in the middle of the road between Santa Fe and Taos, New Mexico, or out in swampland highways in the middle of Louisiana.

AT&T has a Coverage Viewer page where you can look up the data coverage provided by their network in the US.

I was unable to locate small print fee information for the AT&T data package.

Before finalizing your decision, it's best you go somewhere in person and 1) play around with the device yourself, and 2) talk numbers and specs with the attendant there.

I hope this helps someone out there trying to make heads or tails out of the service plans, and hoping to make their iPad buying decision soon. Good luck!

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