Continuing the tradition of charging for hardware

Ah, finally I have time to sit down and actually write something, I apologize for the delay but my new boss has me working at all hours and even weekends!!

I've been working on a few things here and there, but I wanted to focus on Sprint's Epic 4G and the "continuing tradition" of advertising with bullshit marketing schemes that try and get consumer's to look at the dangling shiny object and not look at what they're really purchasing.

As you can see, this is a photo that I took of an advertisement that I got in the mail from Sprint.  It is describing that Sprint has a tradition of "firsts" that it's continuing.

The FIRST and only 4G Super AMOLED screen in the world

Are you.. serious?  That is freaking amazing!  This is a historic day!  Sprint has found a screen that will provide a "4G" service.. but wait, that can't be right.. a screen is just a screen, it can't use DATA right?  Let's keep reading!

The FIRST 4G slide-out QWERTY keyboard

Similar to the screen, we see that Sprint has somehow combined data with hardware of their phone.  It appears that this claim to have the FIRST "something" makes this better than the competition.   Let's just forget that Samsung manufactured the "Galaxy S" series for all 4 carriers and the only difference between them and Sprint is that this phone has a physical keyboard AND the opportunity to use 4G service, IF you are in a 4G area.

You might ask, "So the only difference between these four devices is that one of them has a keyboard, and the rest don't?"  Well, yeah, that's exactly what a consumer who doesn't live in a 4G area is going to consider when looking at these phones.   Some people love hardware keyboards and some people loathe them, but that's up to the buyer.

Scenario: Billy and Susan are friends who live in New York.  Billy currently has the HTC Touch Pro 2 with Sprint and Susan has the Samsung Omnia with Verizon.  Both of them love their current carriers and want to purchase the latest Samsung Galaxy S series phone and stick with their current plans.

Susan goes to the local Verizon store and upgrades her plan to purchase the Samsung Fascinate and Billy goes to the Sprint store and grabs the Samsung Epic 4G.

Both of them purchased basically the same phone, but on different carriers.  Susan is continuing to pay the same price that she's been paying for the last 2 years on her contract.  The thing is though, is that Billy now has to budget in another $10 for "Premium Data" even though he's getting the same phone as Susan!  Since they live in a 3G only area, there's no increased 4G speeds.

So, now Billy's upset at Susan because she keeps teasing him that her phone didn't cost anything "more" a month.  Billy has to remind Susan that his plan is cheaper, but still.. he's upset because it's the principle.

Billy, now fueled with anger after being taunted by Susan, gets the courage to email Sprint and ask "why!?" and here's the response he received:

Dear Valued Customer,

Thank you for writing to Dan@Sprint.com.  I have reviewed and understand your concerns regarding the $10.00 premium data add-on associated with the Samsung Epic. The Samsung Epic signifies a shift in the data features and services that Sprint is able to deliver to customers today.  The Epic device experience is far and away better than any other 3G device in the market because of a host of product innovations.  The Epic holds a faster processor which allows better mobile broadband experiences with gaming, uploading, downloading, and  connecting in addition to the massive 4.0” display with dual cameras for videos, photos, and video conferencing.

The richer data experience requires Sprint to allocate additional resources to its data networks to continue to provide an optimal data experience.  The $10.00 premium data add-on is intended to help cover the costs associated with these resources and will only be assessed on customers who have purchased devices that are capable of taking advantage of this robust data experience. Customers can experience this richer data experience on either the Sprint 3G or 4G networks. Sprint notes that the required $10 premium data add-on is clearly and conspicuously disclosed in all relevant sales and marketing materials, and is directly confirmed with the consumer as part of the purchase process.  Customers who do not want to pay the $10 premium data charge are always free to select from Sprint’s robust device line-up and enjoy a quality data experience.

Again, I sincerely appreciate the opportunity to address your concerns.

If you have any other questions you can contact me at (757) 555-5555. I am in the office Tuesday through Friday from 8:00 AM to 6:00 PM EST and Saturday 8:00 to 12:00 PM EST.

Thank you for your continued business and loyalty to Sprint. Have a great day!

Sincerely,
#######
(757) 555-5555
Sprint

Wait, what?!  Sprint actually emailed Billy and told him that the Epic device "experience" is far and away better than any other 3G device in the MARKET, because it has a FASTER processor and a MASSIVE 4.0" display with dual cameras?

But, wait!  Look at what they're saying!  The Epic requires the $10 "premium data" fee because it's better than ANY OTHER 3G DEVICE IN THE MARKET.  Even the phones made by the same manufacturer (Samsung) and the SAME brand - "Galaxy S".

Are they serious?  Billy doesn't believe it, so he sends another email!

Dear Sprint,

1. Can you define "robust" in this terminology?

2. How will a user in a 3G area only be able to experience a "robust data experience"?

3. Does the $10 premium data add-on allow unlimited data, or does the service plan?

Sprint quickly churns out another auto-reply:

Dear Valued Customer,

Thank you for the email response.  Sprint offers customers the best 3G network experience with the best price value, and where available, the speed experience of 4G. By describing the experience as robust, we believe that the Samsung Epic will provide a rich data experience whether in the 3G or 4G Sprint network. Its features and specs make it one of the best phones available on any 3G network and provide the added benefit of being one of the two devices to take advantage of the 4G speeds where available.  The $10 premium data plan is for  unlimited 3G or 4G data while on the Sprint network with the Samsung Epic.

I thoroughly understand your concerns and apologize for any misunderstandings surrounding the $10 premium data fee associated with the upcoming Samsung Epic device; however this fee will be applicable should you purchase the Epic device and can not be waived or discounted.

Should you have any other questions concerning your Sprint account, please feel free to contact me at (757) 555-5555.  My office hours are Tuesday through Friday from 8:00 AM to 6:00 PM EST and Saturday from 8:00 AM to 12:00 PM EST.

Thank you for choosing Sprint.  Enjoy the rest of your evening!

Sincerely,
#######
(757) 555-5555
Sprint

Well... here we are again. "By describing the experience as robust, we believe that the Samsung Epic will provide a rich data experience whether in the 3G or 4G Sprint network".

Or in other words; "By being vague, we believe you won't question our unclear answers."

The last sentence though in the first paragraph is what stands out.  "The $10 premium data plan is for unlimited 3G or 4G data while on the Sprint network with the Samsung Epic."  If this is true, then this is big.  How can Sprint come out and state that their "UNLIMITED DATA" plans are NOT unlimited with all of the phones on that plan?  They are stating that you need "Unlimited, plus a 'lil extra", kinda like when you were a kid and said "Infinity+1" to outrageously declare something.

Sprint, this isn't junior high!  You can't ask someone to pay for "Infinity+1" when you're selling "Infinity" at a flat rate.

At the start of the article I mentioned how Sprint was "boasting" their 4G firsts; wouldn't it be great if they could only be first in other categories?

This charts and graph was extracted from a press release by J.D. Power and Associates (publisher) and the J.D. Power and Associates 2010 U.S. Wireless Customer Care Performance StudySM–Volume 2 was the source.

Reason for the lack of new content..

Hello everyone!

Thank you all for the emails and continuing to post about this on my site and other Sprint sites!  I just wanted to give a little update about what's going on in my life, since there hasn't been an update from me in almost a month.

At the end of July, my wife and I welcomed our first son into our lives and honestly, I thought I could juggle this side project and the kid, and well... he won this fight.

I'm working on a few things for the site, especially with the EPIC 4G coming out on August 31st.  Please check back soon for updates and I hope everyone understands the reason for the lack of updates.

Note:  My goal was to make people question Sprint's reasoning behind the fee.  If I were to shut the website down today (which I am NOT doing), I would have accomplished my goal.   I have had so many emails, read so many comments on forums and seen other websites talk about this fee and the fact that it is not being ignored is what I wanted.

Thank you all for being so supportive and I can't wait to post my new updates.

Can You Spot the Odd Man Out?

Explainthefee.com welcomes a new guest writer, Airen!  Thanks for the article Airen!

Click on the picture for an Engadget article with information about the 4 different Galaxy S phones coming to the US.

As most of you all know, Samsung is releasing the Galaxy S series phones across all four major carriers in the US.  Each carrier has their "Galaxy S" under their own specific name with their own specific software customizations, but they are all basically the same phone.  The odd man out though, is Sprint's version (dubbed the EPIC 4G), which has a slide out keyboard, front facing camera, and 4G WiMax connectivity, which the other 3 US Galaxy S phones do not share.  The base hardware configuration in the Galaxy S phones includes:

• 1ghz Hummingbird Cortex A8 processor
• 4" 800x480 Super-AMOLED screen
• 5 megapixel camera with 720p video recording

And a few other special features like Bluetooth 3.0, Wifi b/g/n etc.  No matter which flavor you pick, you can't go wrong in terms of the phone being great.  However, as many of you know, Sprint has also announced that their Epic 4G will require the same $10 Premium Data add-on that the HTC EVO requires.  So what does this "Premium Data add-on" get you for this phone?  According to Sprint, you get:

• A wicked fast processor to make your apps run smoother and faster on our Sprint 3G and 4G network
• Top quality media experience with oversized screen, high resolution video and HD recording
• High-quality pics to snap and share with friends and family

Now, if we look at T-Mobile's Vibrant, AT&T's Captivate, and Verizon's Fascinate, we can see that they have all three of those features that Sprint is charging the $10 Premium Data add-on for.  What they don't have however, is any sort of extra fee for those features.  That's right, T-Mobile, AT&T, and Verizon don't require any sort of add-on or extra fee for their versions of the Samsung Galaxy S, while Sprint does.  How are T-Mobile, AT&T, and Verizon able to provide these features at no extra cost, while Sprint makes you pay for a mandatory "add-on"?

The only major carrier-related difference between the EPIC 4G and it's 3 sister phones is that it has 4G/WiMax connectivity.  Sprint claims the fee is not for their 4G service, but so far, the only devices on their network that require the Premium Data add-on are their 4G phones (the 4G data cards do not require the add-on).  Add to that, Dan Hesse also said 4G would be free.  So what exactly is the Premium Data add-on for?  Why don't the other carriers need Premium Data too?  Why is Sprint the odd man out?

Sprint says “Premium Data” is for “Shrimp and Crab”.

This is a phone conversation that took place on July 1st, 2010, between myself and a Sprint Executive Analyst.  This conversation took place due to my complaint at the Better Business Bureau.  I was asked to speak with them, so that we can talk about my complaint.

The person I am speaking with is who responds to the BBB complaints and other inquiries with the executive offices.  This isn't a regular call center Supervisor, this isn't a Sprint.com/chat Supervisor.. this is Sprint's "voice of the company" department.

I have provided a transcript here and also added the transcript in the video.

It's a little long, but it's .. a great listen.

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Highlights:

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7:02 minutes

Sprint: [..] the fee was decided at a last minute, just because of the amount of data that we expect you using the EVO.

20:30 minutes

Me: [..] it appears that the manufacturer of the phone is describing their device, and you are in addition describing the device as well, is the customer who is paying the $10 fee for premium data, are they paying for a hardware device for everything month for $10 dollars?

Sprint: it’s the amount of data, it’s the additional amount of the data that they'll be using on our network because of that processor.

Me: so, would the speed of the processor of the hardware processor, which was described to me by the Public Relations manager and let me see if I can quote her, she stated that the.. the super-fast snapdragon processor, it includes a camera, it includes a super-fast snapdragon processor so that navigation on the phone is quicker and the apps load faster, so does the phone as described by her, it what she is basically saying is that the apps will load faster, because that’s what a processor does, not necessarily data usage

Sprint: [mumbled] and therefore, you would be able to multi-task, and use data on multiple applications at the same time, and on other phones, you would not be able to do that.

38:00 minutes:

Me: Your reply to me is that the $10, the $10 premium data add-on is for unlimited data usage, my plan already has unlimited data, what would be the difference between this and I went to say, an all you can eat buffet, that was basically all you can eat, and this term, this is all you can use, what is, why would the $10 premium data fee ensure that I have unlimited data?

Sprint: it would be for shrimp and crab.

Me: OK um..

Sprint: The shrimp and crab is not included in the regular buffet.

Me: OK, what is shrimp and crab, what is the comparison to shrimp and crab on the HTC EVO?

Sprint: the high quality video, like I said, the YouTube application, it’s the other phones have, they do have the YouTube applications, they do have the ESPN and things like that,the ESPN that you’d be able to stream on the EVO is different , it’s higher quality, like I said, it requires more data, when you’re using that actual feature.

39:50 minutes

Me: OK and you said that in the applications you can use Sprint’s TeleNav, and Google maps, are you aware that the Samsung Moment has those applications as well?

Sprint: Right, but it’s not the same applications, it’s a little bit different.

Me: What is different about it?

Sprint: It has more features and the actual quality of the product is superior to what you have on the Moment.

Me: Because I can see it clearly?

Sprint: Yes.

Me: Using the hardware of the phone that I purchased?

Sprint: Right.

Me: And that’s what the $10 add-on adds?

Sprint: The hardware and network go hand in hand, we’re going to go round in circles, we’re not going to get anywhere, the $10 fee is here to stay, it’s not, I mean it’s not.. we’re not really getting anywhere.

Check out the video or read the transcript.  I spoke with his Supervisor a few days later and will be posting that conversation as well... it gets even better.

Note:  I am located in New York and New York State Law states that I am able to record this conversation since there was at least one party aware of this recording.