Verizon Wireless is launching its Android-based Droid handset on Friday, and already confusion is swirling about how much the new handset will cost you. PC World's sister site, InfoWorld, reported on Tuesday that it will cost an extra $15 to use Droid's built-in Microsoft Exchange ActiveSync feature. This started a frenzy of other reports around the Web accusing Verizon of "nickel and diming" its customers with service fees. But is the Exchange cost true, and more importantly how much will the new Droid cost you versus competing phones like the iPhone on AT&T or the Palm Pre on Sprint?
With all the confusion out there, I've put together a handy chart comparing these phones to set the record straight. But before we get to the cost comparison, let's review a few things about Droid and Microsoft Exchange.
What is Exchange Support?
Many corporations and other businesses take advantage of features found in Microsoft Outlook that allow you to receive your e-mail on a mobile device and share information like contacts and calendar appointments with other users on your company's network. But to do all this, your company has to be running a Microsoft Exchange server, a physical piece of equipment that runs these services for a closed network of users. This is very different from equivalent services such as Gmail and Google Calendar that anybody can sign up for and access for free using their mobile device or home computer.
Business vs. Personal Use
So will it cost you an extra $15 to use Exchange on Droid? I spoke with Verizon spokesperson Brenda Raney about this issue, and the answer, it turns out, is yes and no. Just like any other wireless network there are different prices for business and personal accounts. On Verizon, data access (Web and e-mail) costs personal users $30 a month and business users pay $45 a month. If you're a business user, with a phone provided to you by the company you work for, then yes it is costing an extra $15 to use Exchange Active Sync support on your phone. But since your company is paying the access fees, the cost doesn't directly impact you, the end user.
On the other hand, if you're a personal user paying $30 a month, you could, in theory, still use Exchange Active Sync since the service is built-in to Droid's operating system, Android 2.0. But here's the question I have for you: how are you going to use it? As I noted above, using Exchange requires you to have access to an Exchange server, which is not a piece of technology the typical home user has access to or even needs. But if you do need Exchange access on your personal phone--which I'll say again is typically a very rare thing--don't worry about it, you won't be forking over any extra cash to Verizon every month.
And now, the comparison
I based my cost comparison on an individual, personal use customer, buying a handset under a new two-year contract. I assumed the person would want 450 anytime minutes (AT&T's iPhone plan has a minimum of 500 minutes), unlimited Web and email access, as well as unlimited SMS. These costs also factor in each carrier's activation fee, but remember this cost is often waived during special sales promotions. One last thing I should point out is that these costs don't factor in each carrier's sneaky fees like regulatory and administrative fees that range from ninety-nine cents on Verizon to as much as two dollars on Sprint.
Sprint's Palm Pre comes in the cheapest with estimated plan costs at $1865.75, but that's assuming you take advantage of Sprint's $100 mail-in rebate. Since Sprint folds in that extra step, I assumed a good number of people
Comments
On the question on how to use ActiveSync if you're not a business user, that's easy. Google Gmail uses Exchange ActiveSync to push calendars and email to iPhones and Windows Mobile phones. It would be interesting to see if any users with personal Verizon accounts can use the ActiveSync protocol with Gmail on their Droid phones.
Ian Paul clearly needs to do more research before typing up his articles (0r at least this one). This article seems to be a direct slam against verizon but in fact there are just too many facts left out. Let me clarify a few things. Verizon is currently charging $175 for its term fee which declines $5 each month you are under contract. The term fee is said to increase, but only on smart phones, and then the term fee will decrease $10 each month. Also as far as the exchange service is concerned, yes, it is an extra $15 per month over a pop3 or imap service. This however has been the case for all smart phones Verizon has carried for quite some time. This $15 is due to the extra security, instant backup of contacts, calander, tasks ect. This is no different then the extra $15 charged on a Blackberry to hook up with a Bes. The pricing comparison is probibly accurate, but then again you are talking about a difference about $20 per month and many times you dont really need unlimited everything. Everyone should really compare what they need with what their plan can offer them. You will find that prices become much more comparable with each other. On another note, lets compare the current 3G data netowrks that these three phones are using. I am sure most everyone has seen the new Verizon commercials. These are an accurate representation of the difference in 3G coverage. I could get an iPhone, but I am going to get rediculously slow speeds when I am using AT&Ts overwhelming 2G coverage area. Verizon has nearly if not compleatly built out thier own network to be 3G. I for one would rather pay the extra $5 or $10 dollar difference to have a network that can stand behind its reputation.
I agree , BRAVOOOOOOOOOO
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