Cell phone and wireless technology in Canada: an overview, part 2

As a followup to my initial post on Canadian wireless technology, here’s some additional information on hot topics.

For those not in the know, consumer data rates in Canada absolutely suck. In the States, technically (if not truly) unlimited plans are available starting at $20 per month. The best comparable plan in Canada is Telus’ 1024MB for $100 option. Part of the reason for this situation is our (comparatively limited) selection of wireless providers and population concentration near the border.

What’s all this I hear about “unlocking” phones?
When you buy a phone directly from a GSM carrier like Rogers, it comes with a provider lock on it. This means that the only type of SIM cards that can be used are those provided by your original carrier – so if you buy a Rogers phone, you’ll need to use a Rogers SIM card with Rogers service. If you put a SIM from any other provider in the phone, the only number you’ll be able to dial is 911.

Since most cell phones are subsidized by the wireless provider and people like low initial prices for phones (for example, the phone you get for “free” for signing a contract costs something), the carrier will lock the phone to ensure that you stick with their service. The carrier also likes getting paid for extras such as long distance and out of area calling. Due to the global nature of GSM networks, the better solution for the consumer is to buy a prepaid SIM card when travelling. This way, you’re only paying 20 to 50 cents per minute rather than $1.95/minute. Locking prevents this from happening.

The solution is to unlock your phone, removing the restriction on the carrier. This process can be done for free with some models of phone (the original Razr, for example, can be unlocked fairly easily) and a few minutes of Internet research, or you can find an independent dealer that should perform the operation for a fee. A good place to look is Howard Forums, since Rogers will not give you the unlock code for your phone even if you’re out of contract. Unlocked phones carry a higher resale value on eBay, since any buyer can use their own GSM provider at will.

Public interest in unlocking phones has spiked since Apple’s release of the iPhone, which up until this point has always been shipped with a lock to AT&T in the United States. Since it’s not possible to get an AT&T phone plan from outside the US, and a prepaid card would have astronomical roaming fees for being on a different GSM network, users who want to play with shiny, lickable iFruit have been looking for an unlock solution.

This post comes at an interesting time, since tomorrow Apple is expected to release a European version of the iPhone on the O2 network. The latest news from Rogers about Apple’s device is that negotiations are still ongoing; don’t expect anything until 2008. In the meantime, you’ll not only have to unlock the iPhone to use it properly here, but you’ll need a data plan that will likely be more expensive than any cell bill you’ve ever received.

Of course, with the recent unlocking progress, it’s possible to disable cell data and simply use the phone for your calls, and WiFi for Internet browsing when you’re in a hotspot. Still, at that point, it’s the same price to buy a 16GB iPod touch, pair it with a cheap Nokia for $0 on contract, and call it a day.