I have done previous analysis of the iPhone TCO (and updated it here for the 3G version). Depending on type of usage, I looked at 4 scenarios which over 5 years show iPhone TCO ranging from $ 7,500 to over $ 20,000.
So how does the Google/T-Mobile/HTC - the G1 - package compare? Final details on pricing are still not out - I imagine nuances will be coming out till the product ships October 22. Indeed, T-Mobile just clarified its 1 GB limit on data plans will not apply to this phone.
At the base TCO scenario level, the 900 minute AT&T plan at $ 89.99 a month plus unlimited text messages at $ 20 for a total of $ 109.99 plus taxes - are roughly equal in minutes/data/text messages to the T-Mobile myFaves 1,000 minutes plus at $ 59.99 plus unlimited data/messaging at $ 35, for a total of $ 94.99. (Of course there are differences - AT&T has rollover minutes and unlimited calls to other AT&T, T-Mobile allows unlimited calls to 5 most called numbers, T-Mobile included nights end at 6.59 am, AT&T's at 5.59 am though for another 9.99 a month AT&T extends night time coverage to start at 7 pm rather than 9 pm). But at the base level, there is a slight advantage to T-Mobile helped by the slightly cheaper price for the device - $ 179 versus $ 199 for the iPhone (of course, not every subscriber qualifies for the low device price)
The second TCO scenario I had covered mobile salespeople or regularly traveling (in the US) business folks. This is where T-Mobile with its much wider range of hotspots than AT&T and its previous policy of not adding extra for tethering - using the device as a modem should have a significant advantage. (The iPhone does not support tethering - other AT&T phones like my HTC 8925 does). But as GigaOm reports they are not going to allow for tethering included with the G1. I could not find what T-Mobile would charge additional for hotspot coverage or if that would also cover a laptop in addition to the device. For larger document downloads and when you need a fuller screen it is nice to get the Wi-Fi access on your laptop.
The third TCO scenario covered US subscribers traveling overseas. This is another area where T-Mobile with its better coverage in Europe (being part of Deutsche Telecom) should do better. But they do not appear to be much better than AT&T. From Germany, the roaming rate is 99c a minute as is AT&T. From India it is 2.99 a minute, same as AT&T. For data roaming, not sure if T-Mobile will offer a plan similar to what it offers on the Blackberry for $ 29.99 a month. If it does it could be a significantly better than AT&T's international data plans.
The fourth scenario covered European users. I will update those as they become available from T-Mobile around the G1.
Overall, I am surprised given its limited 3G coverage to start with, and the fact it is chasing a iPhone juggernaut, it has not come up with much more aggressive pricing.
Given how pervasive they are at airports and other locations, T-Mobile could use their hotspots as a significant differentiation. Similarly they could put distance between themselves and AT&T with better international roaming rates - both for voice and data.
Hopefully, they will reconsider prior to the October launch.
