Cell Phone Contracts

Today my second Sony Ericsson cell phone stopped working on me, and of course I was in the magical realm where my warranty had expired and I was not eligible for an upgrade. So, for those of you like me who had never paid attention to cell phone contracts, here is how it works (at least for AT&T):

The minimum contract is for two years, and the phone comes with a manufacturer's warranty for one year. That does not include water or physical damage, so if you damage it own your own you are completely s.o.l. My wife actually dropped her's in water one month after we got our phones, and they let us buy a new one for about $120, as this was by far our best deal out of anything. Eighteen months after signing the contract you are eligible for an upgrade, where you get a phone at the new customer price, plus an $18 upgrade fee. That means for the six months between the warranty and upgrade you are again completely s.o.l.

This realm of purgatory was where I found myself today, as I could have either spent $250 on the cheapest phone out there (as that is their suggested retail price) or purchase a go phone until I was eligible for an upgrade. Right at the point of giving up, the woman helping me out on the phone actually moved my upgrade eligibility up to today, so I was able to get a phone at the new customer price. Needless to say this made my day and saved me a lot of cash.

A further note is regarding insurance. They do offer insurance for cell phones that is $5/month, which does cover water and physical damage. That said, there is still a $50 deductible if you have to buy a new one. While $50 is a lot better than the full $300+, we all have to make our own decisions.

Although I have read many complaints online, the three times my wife and I have had to deal with Cingular/AT&T to get our phones replaced they were pretty helpful. Their products are cheaply made and not very durable, but every time we have talked to someone on the phone with a normal American accent and they have given us a decent deal. I still contend this is sad that I am considering this a good deal; I know you get what you pay for, as our phones were originally free after mail in rebates, but I would definitely be willing to pay for something that I know would last. Unfortunately I have never found a cell phone that will last for two years, but for those of you that have enjoy not having to worry.

I guess the morale of the story is hope you are lucky if you are not willing to pay for insurance, and read the contract carefully as it does not look like policies will be changing any time soon (current reference being AT&T's mandatory contract for the iPhone). Don't know if that is taking a pessimistic view, but then again the battle over coltan has further destroyed the Republic of Congo as 80% of the world's supply lies there. So, not only are we getting crappy products for cheap, hundreds of thousands of lives are destroyed just so we can get those crappy products for cheap. [Specific reading can be found in A Game as Old as Empire or, of course, on Wikipedia.]