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A few days ago came the rumor from Wired, that the upcoming iPod Touch will have a microphone and camera, making it one step closer to becoming an iPhone. One of the things the article mentioned was the ability to use Verizon’s Mi-Fi service and turn the iPod Touch into a mobile device through the use of Skype or the new Google Voice service.

I thought about maybe doing this as I looked at my AT&T bill and saw how much was being drained every month and wanted to give Mi-Fi a shot. But before doing so, I had to do some research on the costs and if it’ll even be worth the hassle.

Cost of my current AT&T Plan and iPhone:

Monthly iPhone bill after FAN discounts: About $90 with data, text messaging plan and taxes.

Cost of the iPhone 3G: $299 for the 16GB

Cost of the Mi-Fi device, data plan and an iPod Touch.

iPod Touch 16GB: $299

Mi-Fi: $99 from Verizon after online discount. That’s with a 2 two-year data contract. One-year contract from Verizon costs $169.99. The price jumps to $270, if you decide to go with a month-to-month plan.

Data price: $60 a month without text messages or phone service.

Assuming I get a two-year deal like the iPhone plan, I’ll pay a total of $459 for the first month, before any taxes. That includes the cost of the iPod Touch, Mi-Fi device and data plan.

My first month’s cost of the iPhone 3G plan equaled a little over $400 after activation and other charges, including the cost of the phone.

Every month after, it’s $90 or more for the iPhone plan, while the Mi-Fi plan is $60 before taxes.

Now that you have all the numbers set, the iPod Touch with Mi-Fi service still lacks text messaging and calling. You’ll need to make phone calls and text right?

I have the Google Voice service and have been using the VoiceCentral App to send texts and make calls. With the Mi-Fi providing internet service, I can use the Google Voice service for free.

- After a two-year iPhone contract, I would have paid over $2,460 with the cost of the iPhone.

- After a two-year Mi-Fi contract, I would have paid $1,840 after the cost of the iPod Touch and the Mi-Fi device.

- iPhone 3G Battery Life: Lasts over a day with mild game play, phone calls and texting.
- Mi-Fi Battery Life: About 4 hours of active use.

The savings on the device are pretty solid, over $600, and the Mi-Fi does have the added benefits of providing wireless internet for more than one device and with Verizon’s coverage, you can have access in many places you normally won’t with AT&T and Sprint.

After doing some of this research, I was still intrigued with the Mi-Fi device and actually wouldn’t mind going through the hassle to test out the service. Now, if the savings were higher, I probably would have made the switch for at least a year.

I don’t know how many people are willing to go through the hassle of carrying two gadgets and using a 3rd party software to make calls and send text messages, while dealing with battery issues, to save $600 bucks. Would you?



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5 Comments

If you are bothered that much about the iPhone price to degrade down to a system this clunky then maybe you shouldn’t be spending money on iPhones and iPods in the first place

that loos like a very cool phone

Finally, someone gets it!!! AT&T does everything they can to disguise the total cost of ownership. Every iPhone you see, represents about $2400 of revenue for AT&T. I would say at least 50% of that is pure profit.

I bought used iPhone from Craig’s list. I get WiFi internet coverage all over the hospital campus where I work, not to mention at home and quite a few public hotspots around town. By the way, WiFi speed is greater than the highly touted “3G” cellular data speeds.

I activated my iPhone on TMobile, and don’t have a contract. Nor do I have the mandatory $30 month data plan that ATT holds you hostage to. Sure, there are a few times when I want data and can’t get it (i.e. in the car), but considering I’m saving $360 a year, I’m OK in between hotspots!!

fdsfdsfds said: If you are bothered that much about the iPhone price to degrade down to a system this clunky then maybe you shouldn’t be spending money on iPhones and iPods in the first place

Lame comment. Some people prefer the sleeker, less expensive iPod Touch. With Skype (or some other VoIP), a headset, and wifi, the iPod Touch is an attractive alternative to the iPhone. I doubt anyone who makes the move will do it purely for the savings, but it helps to know that there are savings to be had. As a current Verizon customer, I can now have the relative equivalent of an iPhone without changing carriers and without the higher monthly bill. Unfortunately, I would have to settle for a slimmer device with better speed and battery life than the iPhone. Shucks.

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