Fuzzy Math — the Data Plan is Separate from the Subsidized Netbook
It’s time to let off a little steam about something I keep seeing over and over on the Interwebs. The growth of the subsidized netbook segment regularly has someone chime in that the “$300 netbook” is really a “$2,000 netbook” due to the cost of the data plan over two years. I understand the logic, but I’m going to call it for what it is — fuzzy math.
The fact of the matter is that the data plan is a separate item from the netbook, no matter the subsidy. Sure the carrier will knock off a few hundred dollars so you’ll buy the netbook, but the real product they are selling is the data plan. Subsidy or no, netbook or notebook, if you don’t need a two-year data plan then don’t buy it. If the data plan is important to your work or other need, then get it and view the netbook as a throw-in on that deal.
What most fuzzy mathematicians fail to note is that carriers will let you move the data plan to any other device, even if you bought a netbook from them. You can move the plan to a “full” notebook down the road if you decide the netbook is too restrictive. You can move the plan to one of those fancy MiFi devices, or even a USB modem. It’s your data plan for two years and you can do what you want with it (except cancel it without penalty).
So don’t buy a data plan to get a cheap subsidized netbook — they are all cheap already. Buy a data plan because that’s what you need, and if you get the cheap netbook so be it. It’s still a cheap netbook — not a four figure netbook no matter what anyone says.
Thank you James. I agree 100%
All good points as the data plans (these days) tack on $1,440 or more over the two year commitment.
“What most fuzzy mathematicians fail to note is that carriers will let you move the data plan to any other device, even if you bought a netbook from them. You can move the plan to a “full” notebook down the road if you decide the netbook is too restrictive.”
Very true, but worth noting so that people don’t misunderstand: while you *can* move the data plan to a new device, but you’re not likely to get said new device at any sort of a subsidized discount. You got the subsidy on the first device in the contract, so don’t forget this very important point as you’ll likely pay full price for the new device.
Agreed, but then you can get a sweet USB modem like we’ve both used and plug it into anything.
Or a brand-new notebook with 3G built-in. Those would also qualify, except instead of calling in to activate service, you would call in to register your new device on your existing plan.
I still say the 5GB cap sucks, especially with a MiFi, but buying separate plans for each device is at least no longer necessary with something like that.
Finally, someone calling it like it is. Those comments calling a netbook a $2000 device just work my nerves.
Thank you for that. With our needs becoming more about data and less about phone calls, it’s like someone complaining that you need a plan with your iphone. It’s a service that people pay for, and while expensive, many enjoy having. Though, yes, 10gb a month would be more reasonable.
I think some people confuse this with the cellphone subsidies and plans. Which is why I prefer unlocked cellphones so that you can put any sim in the phones that i have and it will work. I have multiple laptops with internal 3g modems and i just do the sim swap when i need to use it. I have even put a data sim in a phone and been able to use it also. (AT&T just charges by the minute for calls but you can add texting plans to it if you like)
I understand the pain about the 5GB limit but since i don’t have that I don’t worry. I was glad to get a data plan before they were popular and get all-i-can-eat so I eat all I want with it and don’t worry.
I disagree with the premise of this article. At the very least the cost of early termination fees should be factored in to the cost of subsidized netbooks. Especially in today’s economy people are wary of adding expensive monthly contracts to their expenses. Since I don’t make many phone calls I’m considering ditching my AT&T mobile phone voice and data plan and using an iPhone paired with a Verizon Mifi and Google Voice. I advise people to consider what they’ve committed themselves to when they buy a subsidized mobile phone or netbook. Most people can’t get by without a mobile phone, but can make do without a netbook.
If you are signing up for a data just to get the netbook, you have a good point. The netbook is gonna cost you a few grand.
If you need a data plan, why not go with a carrier that will give you a free or reduced cost netbook.
The product is the data plan. The netbook is an incentive.