Cell phone data networks are swamped. Now carriers want you to pay more money – and use your own resources – to help them deal with it.

AT&T has made little secret of the fact that iPhone users’ voracious appetite for Internet bandwidth has loaded down its 3G network to its breaking point. But rather than upgrading its 3G network like T-Mobile, or going full throttle on 4G deployment like Sprint and Verizon, AT&T plans to fix the problem by… asking consumers to bear the load for them, and charging them money for the privilege.

The company’s new 3G MicroCell acts like a miniature cell phone tower, routing calls through your home Internet connection – the one you probably pay at least $30 a month to access – rather than burdening AT&T’s 3G network with your traffic – which you will continue to pay at least $30 a month for.

How nice of you.

In exchange for taking your weight off its creaking, overburdened network, AT&T will happily charge you $150 for the 3G MicroCell, and continue to deduct minutes from your plan when you use it, even though you’re paying another company to handle your traffic, and paid out of pocket for the device to do it. If you want to reap any benefits, AT&T will stop deducting minutes from your plan whenever you’re in range of the MicroCell – in exchange for slapping another $20 bill in its hand every month.

The story of Tom Sawyer tricking another boy into whitewashing a fence for him and collecting an apple in payment comes to mind, but I can do one better.

Imagine a bus company that charges you $100 a month for a bus pass, but the busses get so crowded you can barely use them. The bus company’s solution: Offer to sell you a bicycle for $150, so you can help free up room on its busses by not using them all the time, even though you’ll continue to pay $100 a month as if you did.

It almost offends me that AT&T thinks we’re dumb enough to fall for this, but I know many consumers will be. By promising better reception around the house with the 3G MicroCell, as the company is bound to do in advertising it, many cell customers will happily shell out $150 for one, unaware of the traffic they’re moving to their home Internet connections, or the favor they’re doing to AT&T. Just like Tom Sawyer’s pal.

In AT&T’s defense, it’s no guiltier than any other carrier in attempting to dupe us with the 3G MicroCell, which is part of a larger class of electronics known as femtocell devices. Verizon’s Wireless Network Extender, launched last year, costs a whopping $250, doesn’t provide 3G, and won’t even let you stop others – like neighbors with Verizon plans – from leeching off your service for better reception. Sprint’s Airave pulls similar shenanigans.

I don’t mean to vilify femtocell technology. It’s actually marvelous stuff that could help uncongest airwaves and speed up mobile Internet access, but AT&T and others haven taken a completely backwards approach to implementing it. Ultimately, these devices should be free to anyone who agrees to actually use it – subsidized by carriers in exchange for the lightened load on their networks. And because you cost carriers less, not more, when you use them, unlimited calling with no minute allotment should be a given on any femtocell device as an incentive to use it as much as possible, not an extra you pay monthly for.

As long as evil geniuses with big marketing budgets get their way, that won’t happen. In the mean time, the best you can do is stay as far away from Tom Sawyer’s whitewashing scheme as possible, and wait until he offers a real incentive to pick up the brush.

Maybe I’ll flick off the Wi-Fi on my iPhone in protest and soak up even more of AT&T’s precious 3G while at home. Just kidding. No act of protest is worth voluntarily subjecting myself to that network more than necessary.

If you would like to leverage your home Wi-Fi connection to make cheap calls without scratching AT&T’s back while you’re at it, make sure to check out our list of iPhone VoIP apps that can help you pay for fewer minutes and get more.

Showing 10 comments

  1. Overlooked and underrated gadgets and technology at 5:33am 17th July 2011 [...] in my house (from any carrier) and now I have full voice and data service on my iPhone. Yes, it should be free since you are already paying quite a bit for ATT cell service. However, it’s only $50 after [...]
  2. Overlooked and underrated gadgets and technology | Make Electronics at 5:23am 17th July 2011 [...] in my residence (from any carrier) and now we have full voice and information use on my iPhone. Yes, it should be free given we are already profitable utterly a bit for ATT dungeon service. However, it’s usually $50 [...]
  3. Overlooked and underrated gadgets at 5:01am 16th July 2011 [...] in my house (from any carrier) and now I have full voice and data service on my iPhone. Yes, it should be free since you are already paying quite a bit for AT&T cell service. However, it’s only $50 after [...]
  4. Viper4ever05 at 5:13pm 14th June 2010 truly pathetic, this stupid corporation still doesn't know who lines their pockets. How about they invest and try to upgrade your crappy network before they try scamming people. They can't be worried about short term profits at the expense of long term profitability. The iphone is going to loose its exclusivity soon, they need to be thinking ahead and try to figure out a way to improve their network because when the iphone jumps ship to other carriers, they will find themselves with a lot less customers and they need to entice these customers to stay with them or they really are screwed.
  5. TEG at 7:52pm 1st April 2010 Rebuttal here - http://geekinthecity.com/?cat=568
  6. Sam at 11:06pm 24th March 2010 I think you are giving AT&T too much credit. I am sure the company is just trying to recoup the cost of their hardware upfront.

    Nick is pointing out how the network is trying to trick customers that there is a solution to their crowded network, and the solution is so good that you will want to pay for it. Nothing more than a gold-plated turd.
  7. Jeff at 10:46pm 24th March 2010 Good points Nick- One quick observation is the perceived value of the device.... Meaning that if it were free, there would be none. It's sort of lilt the couch on the sidewalk with the free sign on it that sits there for a week, but when you put a $50 sign it gets stolen the next night.

    And not to play the devil's advocate.... But if you don't want voluntarily subject yourself to AT&T's network any more than you have to..... Why do you?
  8. Ian Bell at 6:08pm 24th March 2010 I am sure that is a case-by-case scenario too don't you think? I can't imagine Sprint would advertise or promise to give users that femtocell unless they had to. Paying for the unlimited plan is a joke too.
  9. emellaich at 6:01pm 24th March 2010 I believe with Sprint (not sure, you'll have to check with your rep) if you tell them that you don't have service in your home they'll give you their femtocell for free with no monthly charge. However, it will still use minutes off of your plan. You do have to pay for an unlimited plan (which as you note, makes no sense). However, at least the first version is reasonable
  10. Ian Bell at 5:34pm 24th March 2010 So when someone uses the micro-cell at home, is it technically a VoIP call at that point since its using your homes net connection?

    This is a total scam and it's sad to see AT&T try to spin it this way instead of simply upgrading their network to handle the load.
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