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DISPOSABLE COMMUNICATIONS
Fiedor Report On the News #284 ^ | 8-25-02 | Doug Fiedor

Posted on 08/24/2002 10:25:03 AM PDT by forest

Two questions were under discussion with merchants in the neighborhood: When is inexpensive and disposable stuff junk? And, just because something is inexpensive and disposable, should we call it junk even when it is very useable and quite handy?

Nonetheless, "junk" was the first impression most of us had as we read over the information I researched for this new product. At least, that was our impression until we thought about it for a while.

Most of my adult life was spent tethered to a beeper and/or cell phone. Now, in semi-retirement, I adamantly refuse to carry either again. The last thing I want is to "take a call" while driving, shopping or eating in a restaurant. Unless there is an important family emergency, whatever the problem can wait.

Still, there are certain times when one would like instant communications with family or officials. Driving around the back roads of Kentucky, I have come upon crashes by people who drove too fast to stay on the winding roads. In an urban community, I sometimes see feral street cretins up to no good. And, sometimes someone nearby just needs an immediate call for help. In those instances, having a cell phone comes in handy.

On the other hand, I do not wish to carry around something I really do not want to use. So, in a nutshell, there's the problem.

Which brings us back to the inexpensive and disposable. Some enterprising American businesses have come up with a new product that basically fills a need in the modern communications gap while not costing a lot of money for the user.

Cell phones are still relatively expensive. And, as stated above, many of us just do not wish to receive calls outside of our home or office. Besides, most cell phones are still too bulky to carry around comfortably.

Now comes the new wave of personal communications: the relatively inexpensive, disposable cell phone. Generally speaking, these do only one thing. They call out. All the bells and whistles are removed and the bear-bones circuitry allows the telephone to be produced in a small package.

From Garden Grove, CA comes a small company named Hop-On.com Inc.(1) In Orlando, Fla., there is New Horizons Technologies International Inc. Both are scheduled to begin sales next month. Reports are that New Horizons plans to make 1.2 million phones during the next 12 months.

"All the phone companies want to do is get you to use their fancy applications so they can charge you a lot of money. I think a lot of people just want to make a phone call," Hop-On.com Chairman and Chief Executive Peter Michaels told reporters.

As reported by the Washington Times last Tuesday: "New Horizons' least expensive model will cost $39.95 and have 10 minutes of calling time. Another model with 30 minutes of calling time will cost $44.99. Hop-On.com's phone will cost $39.95 and have 60 minutes of calling time. Neither company will charge a monthly fee or activation fee."

These are still a little pricey for those who talk a lot. But there is important competition coming, which means the price will be coming down fast.

Most interesting is Diceland Technology of Cliffside, N.J. Diceland designed a cute little cardboard phone.(2) Unfortunately, it seems that Diceland handed the project off to General Electric, so it may take a while for that corporate bureaucracy to get something on the market.

Unlike most of the new disposable phones, the New Horizon Technologies Cyclone will also be able to receive calls.

"We believe Cyclone fills a glaring void in the industry," says Stephen Romeo, Sales VP for New Horizon Technologies International, creators of the Next Generation Disposable Cell Phone.

"Wireless manufacturers continue to build products geared to the high-end user, constantly adding more bells and whistles and making phones prices higher and higher. No one is building a product for the masses -- until now. We've designed and built Cyclone with 1/3 the parts of a normal cell phone, making it much less expensive to build and service. Our phone only has one bell and one whistle -- make a call and receive a call. That's all most of us really need."(3)

Most of the new cell phones will not be exactly disposable. That is, there will be a $5.00 rebate given on used phones returned and they will be reworked and refreshed to be used again.

At the moment, various price schedules are proposed and some are much too expensive. Initially, most will probably be sold at about $30.00 for 60 minutes of talk time. However, there are rumblings that one company will be selling semi-disposable cell phones for just $10.00 for 60 minutes talk time.

We look for some type of inexpensive phone that can be left in the automobile glovebox until needed in an emergency. Such a device seems to be on the horizon. I'll take two.

-----------------------------

1. http://www.hop-on.com

2. http://www.dtcproducts.com/home.html

3. http://www.cyclonephone.com

 

 END


TOPICS: Activism/Chapters; Business/Economy; Culture/Society; Editorial; Miscellaneous; Unclassified
KEYWORDS: cellphones; convenience; cost; useconvenient; useemergency; wireless
Now comes the new wave of personal communications: the relatively inexpensive, disposable cell phone. Generally speaking, these do only one thing. They call out. All the bells and whistles are removed and the bear-bones circuitry allows the telephone to be produced in a small package. These are still a little pricey for those who talk a lot. But there is important competition coming, which means the price will be coming down fast.

We look for some type of inexpensive phone that can be left in the automobile glovebox until needed in an emergency. Such a device seems to be on the horizon. I'll take two.

1 posted on 08/24/2002 10:25:03 AM PDT by forest
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To: forest
Very good to hear. I share the writer's perspective.

I prefer using my phone(s) as little as possible. Monthly fees are undesirable. Unlimited minutes have zero appeal.

I feel like I am in the minority on this, given the heavy usage of cell phones I observe daily. God willing, I shall never join that throng.

These disposables sound great to me! Thanks for posting this item.

Regards,
2 posted on 08/24/2002 10:42:27 AM PDT by Museum Twenty
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To: forest
One advantage it would seem the outgoing-only phones have over "normal" ones is that they don't need to use any current at all when they're not placing calls. Since the lifetime charge requirements can be predicted, it's simple and easy for the manufacturer to include enough disposable battery capacity to meet it. Since disposable batteries generally don't lose charge on the shelf like rechargeables do, this would render the phones suitable as 'emergency use' items.
3 posted on 08/24/2002 10:57:28 AM PDT by supercat
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To: supercat
bump
4 posted on 08/24/2002 11:25:14 AM PDT by timestax
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To: forest
Nice idea, but at those prices it probably ain't gonna fly, because it's a terrible deal.

We recently lost our cell phone. I called to order a replacement from AT&T wireless. The price? $20, including charger.

"All the phone companies want to do is get you to use their fancy applications so they can charge you a lot of money. I think a lot of people just want to make a phone call," Hop-On.com Chairman and Chief Executive Peter Michaels told reporters.

Well, let's just look at his claim. One of these guys is charging $4/minute, and another is charging the "bargain" price of $1.50/minute!!!

By comparison, my calling plan is pretty bare-bones: our bills run ~$20-30/month, and my wife uses the phone for a lot longer than 10 minutes -- per day.

Bottom line: if you shop around, you can beat these guys' price every time.

5 posted on 08/24/2002 12:12:55 PM PDT by r9etb
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To: r9etb
Nice idea, but at those prices it probably ain't gonna fly, because it's a terrible deal.

I agree that at the current prices there's no chance of this thing flying. On the other hand, from what I understand of some of the manufacturing techniques here, it should be possible to manufacture the phones for under $5 in quantity, allowing them to "retail" for $20 and sell for $15. The prices quoted here are absurd, as is the notion of selling a phone with only ten minutes (even a 911 call may have to last longer than that!) Still, if they can get the price down it may be a decent product.

6 posted on 08/24/2002 12:23:55 PM PDT by supercat
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To: r9etb
Only if you intend to use the phone a good bit. If you only want to use the phone for emergencies or unusual situations, calls generally only take about a minute or two, and you will get a years worth for $30. At even $30 for the phone and $20 a month, that year will cost you $250.

Another advantage is privacy. Since you can buy these phones cash and carry, there is no tie to you through a credit card or telephone company. I have heard that at least one major cell phone company records all calls, which is not hard to do in these days of cheap data storage. With these phones, it would not matter, as there is no connection to you. You are simply buying communication, pure and simple, instead of volunteering your life history into a data base. There is clearly a market for these phones.

7 posted on 08/24/2002 12:24:12 PM PDT by marktwain
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To: r9etb
We recently lost our cell phone. I called to order a replacement from AT&T wireless. The price? $20, including charger.

The "real" cost of even the cheapest cell phones is in the $80 range. Many wireless companies sell them at a loss because they expect to recoup the money in service and airtime charges. Obviously that business model doesn't work with these disposable phones.

8 posted on 08/24/2002 12:26:03 PM PDT by supercat
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To: marktwain
At even $30 for the phone and $20 a month, that year will cost you $250.

Yes, but if you really need the phone just for emergencies, I believe cell phone companies are required to carry all 911 calls, whether or not the phone from which they originate is subscribed to, or has billing arrangements with, their network.

9 posted on 08/24/2002 12:34:27 PM PDT by supercat
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To: marktwain
yeah,access to a phone without being traced.Call from anywhere absolutley anonomous.I think this might appeal to some crooks if you ask me.Of course terrorist would love it also.Two or more people,anywhere accross the country,discussing activities to be scheduled,with out the fear of being tracked,just wonderful.
10 posted on 08/24/2002 12:35:14 PM PDT by eastforker
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To: marktwain
Another advantage is privacy. Since you can buy these phones cash and carry, there is no tie to you through a credit card or telephone company.

Well, there is one tie, and it's a pretty big one. No, not identity directly, but you've still got to be able to reach a compatible cell tower with one of these things. So not only are you limited to using this phone in places where these companies serve (there goes a lot of the rationale for an emergencies-only phone), but your phone still has to be recognized by the system in order to work. IOW, they can track the phone. And it's not at all unlikely that the FCC would require buyers of these things to be matched up to the phones they buy.

11 posted on 08/24/2002 12:53:06 PM PDT by r9etb
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To: eastforker
Or the tin-foil hat crowd that hasn't been implanted yet.

Or don't want to be called on the cellphone for fear of a small charge going off in their ear.

Or those of us who do not want to be tracked by the latest and greatest marketing techniques.

I guess there is that area of NC (IIRC) that has an exclusion against *any* broadcasting.

Even the paranoid have real enemies.

But I can see your point. The biggest market for them is going to be the bozos in the State Department and NYT/WP
reporters giving them out to their "sources". Probably one and the same.

Then there is the Senatorial staffs of Kennedy, Daschle, Leahy, Clinton, Boxer, Feinstein, Feingold, Kerry, ...

12 posted on 08/24/2002 1:10:27 PM PDT by Calvin Locke
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To: forest
Sounds like a stealth infomercial.
13 posted on 08/24/2002 1:13:28 PM PDT by Consort
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To: Calvin Locke
The only time i talk to my in-laws is when i call them?

Priceless, on my way to buy one !!!!

14 posted on 08/24/2002 2:24:48 PM PDT by TYVets
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To: Calvin Locke
These sound like perfect stocking stuffers for the kids and grandkids. I'd want everyone to have one, and give them instructions on how and when to use them.

Your child just got a car? Sure, you have a roadside emergeny plan in the insurance policy, but you have to be able to contact roadside assistance for the plan to be of much use.

Child made an adolesent error and ended up at a beach party with lots of underage drinking, and she doesn't like the way it is going? Nice to have the emergency phone to call a ride.

Want cheap insurance that you can call the police, even if the phone line is cut, but don't want to pay $250 a year on a fixed income in a bad neighborhood? That $30 phone sure is looking good. Need to call a local bureacracy from work, they aren't open during working hours, and your employer has a strict "no private use" policy? The uses of these phones are endless. I predict that they will be extremely popular, and will quickly become capable of being called. It can all be put on one chip, and any chip, produced in quantity, has its price fall below a buck. If the government doesn't prevent this, we will have them on the market for $10 for an hours worth of calls in five years. This is a great step forward for practical liberty.

15 posted on 08/24/2002 5:39:23 PM PDT by marktwain
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