My $23/month iPhone (updated)

calling-with-skype1

Acquir­ing the iPhone

So a while back I was lucky enough to acquire an unlocked iPhone 2g for a killer deal from a good friend who upgraded to the 3g. I decided there was no way I was going to pay the $65/month voice & data + 2yr con­tract ser­vice plan just to have and use the world’s best phone. So nat­u­rally, I started search­ing for alter­na­tive ways around this awful money-pit.

Jail­break + Unlock­ing the iPhone

I first jail­broke my iPhone using Quick­pwn, the pop­u­lar DIY easy jail­break­ing appli­ca­tion. But I soon found the mac ver­sion of Quick­pwn doesn’t incor­po­rate the steps to unlock the phone. I instead needed to use iPhonePWN (for mac) to unlock the base­band on my iPhone. Unlock­ing the base­band enables me to use vir­tu­ally any GSM enabled SIM card in my iPhone to send & receive calls.

The GoPhone®

Once my base­band was unlocked, I promptly drove down to the local AT&T store, and bought a $25 Pay-as-you-go  GoPhone card (which comes with a new SIM card) and had them port my pre­vi­ous Ver­i­zon phone num­ber to the newly acquired GoPhone account.

gophone-att-logo

To be safe, before acti­vat­ing my GoPhone account, I down­loaded the iPhone app Boss Prefs in order to dis­able the Edge capa­bil­i­ties of my phone. We don’t want it pulling data down for 1¢/kb and suck­ing up my $25 card. I popped in the new SIM card, then acti­vated my account and VOILA! Send­ing & receiv­ing calls on my iPhone with a pay-as-you go card! The one catch – no visual voice­mail. That is acti­vated through AT&T’s iPhone only ser­vice plans.

The Skype Plan

In order to take this one step fur­ther, I decided to see if my GoPhone — iPhone GoPwn could use the Medi­anet® ser­vice offered to reg­u­lar GoPhone cus­tomers. Hoo boy! Full inter­net access for $20 per 100mb — not bad. Now I can use my edge again… This would never be suf­fi­cient for teth­er­ing to my lap­top, but just enough to browse the web and reap the many ben­e­fits of an edge/3g enabled iPhone.

SKYPE!! So next I down­loaded the newly released Skype app. It works bril­liantly! Skype to Skype calls with the iPhone are no prob­lem! There was one catch… Skype app is lim­ited to WIFI net­works only. So I down­loaded the jail­break app VOIPover3G and this tricks Skype into think­ing the phone is always on WIFI.  I bought a Skype num­ber for 9 bucks and an unlim­ited Skype callilng plan to get inbound and out­bound calls to any phone for $3/month.

Skype calls on the Edge data net­work are just fine and use hardly any band­width. I also down­loaded the jail­break app Back­grounder so I can keep my Skype app run­ning while the phone is locked & in my pocket.

Con­clu­sion

That’s my story! I will keep some credit on my GoPhone account for emer­gen­cies, or occa­sional lazy moments, but besides that just a $20 refill for the data plan, with a lit­tle extra work using the Skype app, and I save myself a bun­dle using mobile VOIP!

++Extra Bonus — No con­tract, I can just stop pay­ing if I need to!

My next goal is to some­how tie this in with my Google.com/voice account!

iphone-screenshot

Update… April 23rd 2009

After about a month of using this setup and the enor­mous pop­u­lar­ity of this post, I decided to follow-up and address some of the ques­tions that have been asked.

Does this really work?

Yes, this works. That’s why I wrote about my experience.

Is this for me? Can I do this to my iphone?

No. This is not for every­one. It is cer­tainly not a fully func­tional, flaw­less method of using an iphone for $23/mo. If you are how­ever some­what tech savvy and will­ing to take some extra steps to save some money and you hap­pened to get a contract-free iphone like I did for $80, then go for it.

What about Skype how well does that work?

Skype works as it should (over WIFI).  I have heard sto­ries of it crash­ing fre­quently on jail­bro­ken iphones. This has not been the case for me. I am on iPhone soft­ware 2.2 (5G77) and it has worked fine. How­ever, Skype over Edge has been a dif­fer­ent story. While it does work, it has it’s issues. For instance: Con­nect­ing a call can take any­where from 10 to 20 sec­onds. 1 out of 5 or 6 times the call is dis­con­nected. There is a lit­tle lag between calls from VOIP to Voice and some­times appli­ca­tion lag. Also, Skype will not con­tinue work­ing when chang­ing net­works. For exam­ple, when leav­ing a WIFI and switch­ing to Edge the Skype appli­ca­tion must be relaunched in order to send or receive calls.

What about bat­tery life with Skype run­ning 24/7?

The bat­tery life has been fine for me so-far. This is likely due to the fact that I’m a graphic designer and I have the lux­ury of leav­ing my phone plugged in for at least 4–6 hrs a day.

Is the 100mb/mo sufficient?

The 100mb Medi­aNet is a ser­vice from goPhone for the price of $20. This data expires after 30 days. I am around a WIFI prob­a­bly 80% of my day. So the other 20% of my life I’m not on WIFI, I reg­u­larly checked my email, looked up maps, made calls and watched the occa­sional video. I used about 65mb in 30 days of usage. This 100mb would never be suf­fi­cient for teth­er­ing, but it works just fine for all the iphone apps which call for inter­net usage.

What about SMS?

If your feel­ing ambi­tious, there are sev­eral iPhone apps that let you send free text mes­sages VIA data. They have their draw­backs (unable to reply some­times, and hav­ing to check a web­page for incom­ing mes­sages… The other solu­tion is to use Skype’s SMS ser­vice, but they have their own fees which aren’t much bet­ter than AT&T’s SMS plans. I am not a huge tex­ter so I have just been buy­ing blocks of SMS mes­sages on my GoPhone account — $4.99 for 200 messages.

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171 Comments

  1. Bradley N. Anthony
    Posted April 22, 2009 at 4:55 pm | Permalink

    This still does not beat my $25/mo Sprint Employee Plan with 3,000 min­utes, Nights at 7/Weekends, unlim­ited mes­sag­ing, unlim­ited data, Sprint to Home, with my Treo 800w. I use the Sprint to Home to steal min­utes via for­ward­ing and Google Voice. That and my phone has a REAL oper­at­ing sys­tem. Not just some­thing that can run fart­ing apps.

  2. John
    Posted April 22, 2009 at 6:04 pm | Permalink

    To tie it into a Google Voice like account go to http://www.phone.com and use their Vir­tual Num­ber ser­vice. You can port over your exist­ing num­ber, and if you sign up 5 friends then the ser­vice is free, else wise it is $4.88 a month. You can also get voice­mail to text emails (so no need for visual voice­mail — one step better).

  3. James
    Posted April 22, 2009 at 7:43 pm | Permalink

    If you want to imple­ment with Google Voice just use Gizmo.

    I have to work on some­thing like this with a pre­paid T Mobile plan, but not nec­es­sar­ily with an iPhone.

  4. eQ
    Posted April 22, 2009 at 7:46 pm | Permalink

    Nice post. I can appre­ci­ate the effort.

    Man, there are lot of iPhone haters out there! Hav­ing tried just about every smart­phone, noth­ing com­pares to iPhone for the depth and qual­ity of apps. Though the Pre shows promise if they get it off sprint and it works as advertised.

    That being said I use a Nokia E71 because I refuse to pay the $30 for inter­net. I pay $15 which gives me unlim­ited 3g inter­net access. Joikus­pot cre­ates a wifi hotspot which I use with my iPod Touch and net­book. The E71 has real key­board, amaz­ing bat­tery life, great cam­era and a native Skype app.

    My upfront costs were more because I pur­chased two devices. My monthly costs are only slightly higher. But I get all the ben­e­fits of Apple apps and the free­dom of Nokia hard­ware with­out all the hacking.

  5. James
    Posted April 22, 2009 at 8:13 pm | Permalink

    Also, you should have gone with T-Mobile. They have a $100, 1000 minute pre­paid plan that doesn’t expire for 1 year. Then they have an unlim­ited data plan for $10 per month with no fees or con­tract or any­thing. It ends up being about $18 per month, and you don’t really need to con­serve T Mobile min­utes. You can prob­a­bly get that $100 down if you have reli­able WiFi and can depend more on VoIP. You’d have to check their other pre­paid plans though.

    Again, if any­one uses VoIP, go with Gizmo. They have an ultra cheap pre­paid plan that links fully with Google Voice. They do SMS also.

    Thanks for this arti­cle. I’ll be going a slightly dif­fer­ent route, but it still helped.

  6. Adarro
    Posted April 22, 2009 at 8:33 pm | Permalink

    @Bradley FYI OSX is gen­er­ally con­sid­ered a ‘real os’, whereas Win­dows is usu­ally ridiculed, let alone a crip­pled Win­dows Mobile. How­ever, Kudos 2 ya for hav­ing a sweet cor­po­rate deal non-the-less.
    Not @Bradley:
    Per­son­ally I’m an Android fan.
    Dig for this guy who got what he wanted at a price he was happy with and nice enough to share. I always won­dered why peo­ple talk so much trash about some­one elses idea when it doesnt do what _THEY_ want. It’s kinda say­ing a guy who bought a porche 911s for $300 is an idiot because it has no off-road abil­ity and YOU love to go off-road.

  7. FJ
    Posted April 22, 2009 at 8:36 pm | Permalink

    Whats an I-Phone — fun read.

  8. kato7000
    Posted April 22, 2009 at 9:02 pm | Permalink

    Bradley N. Anthony is an idiot,

  9. radioburger
    Posted April 22, 2009 at 10:23 pm | Permalink

    @Bradley N. Anthony
    Not every­one sells phones for a liv­ing so stfu and stop brag­ging about your deal. One day you won’t have that job and you’ll be trolling blogs like this to save money because you never had to bud­get for a real plan. I have the same plan but I don’t brag about it because most peo­ple have jobs that often more pos­i­tively impact the world, and how­ever more deserv­ing they are, they don’t get dis­counts like us. So, cut the nar­cis­sism and get back to the topic in dis­cus­sion. Nobody cares how much of a tool you are.

  10. Mark
    Posted April 22, 2009 at 10:36 pm | Permalink

    $20 per 100MB? I rou­tinely use up to 500MB per month in data on my iPHone, which would mean a $100 month bill before what­ever data I used for Skype. That would be a sig­nif­i­cant increase from my cur­rent monthly bill.

    I make fairly heavy use of stream­ing audio apps, which is likely the biggest con­tribut­ing factor.

  11. Posted April 23, 2009 at 1:56 am | Permalink

    nice one

  12. Posted April 23, 2009 at 2:26 am | Permalink

    Genius! I wont be jail­break­ing my iphone though — wait­ing for the 3.0 release… push noti­fi­ca­tion could help make VOIP become main­stream — let’s hope so :D

  13. rg
    Posted April 23, 2009 at 6:11 am | Permalink

    I am plan­ning to buy a porsche but I can’t afford insur­ance and gas for it. My plan is to push it around and coast down hills for fun. Sim­i­lar to own­ing an iPhone with out the bells and whis­tles? Absolutely. Con­grats on a com­plete waste of time.

  14. Ryan
    Posted April 23, 2009 at 7:14 am | Permalink

    Good work. If it the time and effort was worth it for YOU then that’s all that mat­ters. Don’t lis­ten to every­one whose bring­ing you down. They’re just jeal­ous. Sure there are some lim­i­ta­tions but if you can live with them — what does it matter?

    I have an iPhone 3G and I have yet to find another phone that would make me give it up. So I guess — in other words — it’s the best phone money can buy.

  15. Posted April 23, 2009 at 7:17 am | Permalink

    I don’t under­stand how these state­ments work together.

    So a while back I was lucky enough to acquire an unlocked iPhone 2g for a killer deal from a good friend who upgraded to the 3g.”

    To be safe, before acti­vat­ing my GoPhone account, I down­loaded the iPhone app Boss Prefs in order to dis­able the Edge capa­bil­i­ties of my phone. We don’t want it pulling data down for 1¢/kb and suck­ing up my $25 card.”

    In order to take this one step fur­ther, I decided to see if my GoPhone — iPhone GoPwn could use the Medi­anet® ser­vice offered to reg­u­lar GoPhone cus­tomers. Hoo boy! Full inter­net access for $20 per 100mb — not bad. This would never be suf­fi­cient for teth­er­ing to my lap­top, but just enough to browse the web and reap the many ben­e­fits of an edge/3g enabled iPhone.”

    The 2g (edge) phone only uses edge and wifi. Media net uses Edge.

    So if you dis­able edge, no media net.
    Also, why then call your phone an edge/3g enabled iphone. — it’s edge enabled.

    –con­fused.

  16. Posted April 23, 2009 at 7:34 am | Permalink

    …just to have and use the world’s best phone.”

    and that’s when I scroll to the bot­tom to remind you how much of a sheep you are.

  17. Sara
    Posted April 23, 2009 at 9:10 am | Permalink

    I am not tech savvy and don’t have an iphone but I will per­son­ally (depend­ing on your loca­tion) fly and come see you and pay you to do this for me or you can post one on ebay.….…pretty please with a cherry on top

  18. Rudy in Mount Clemens
    Posted April 23, 2009 at 9:37 am | Permalink

    BUT.….

    . .… Can you hear me now ?

  19. Los
    Posted April 23, 2009 at 9:56 am | Permalink

    @Cody Thanks for the post, great info!

    I’m a lit­tle corn­fused. Do you use the GoPhone and skype to make/receive calls? Or do you use Skype for out­go­ing, but Go-phone for incom­ing? Does the GoPhone plan allow 911 calls? I cur­rently have the plan men­tioned by Bradley N. Anthony, but my phone is a dis­grace, almost all Sprint phones I’ve had are just crap. I love my iPod Touch, but don’t want to carry a phone plus iPod.

    Thanks!

  20. picklini
    Posted April 23, 2009 at 1:51 pm | Permalink

    OMG!!!! you have the endame pop­ping key­chain!!!! isn’t it fun?! i love mine! did you buy yours on thinkgeek.com?

  21. ledheadman
    Posted April 23, 2009 at 1:55 pm | Permalink

    what about texting?

  22. Eric
    Posted April 23, 2009 at 2:16 pm | Permalink

    I’m going to spain this sum­mer and really need to find a cheap way to call home. I have skype portable app, but don’t like the idea of hav­ing to pay for inter­net cafes or remain com­pletely sta­tion­ary and locked on my com­puter screen for the doubtlessly hour long calls i’ll be mak­ing to my girl­fr­riend and par­ents. If I some­how (don’t ask me how) acquire an iPhone, and take the steps required, would skype work for me in Spain? Is there any rea­son I shouldn’t believe that for around 28$ a month i can call every­one i need to from a mobile phone?

    Also, I recently got my hands on a palm treo, its safe to assume that i have no way of using skype on that device, right?

    So to leave an open-ended ques­tion for every­one out there, how best would use a u.s. mobile phone while in spain to con­tact other mobile phones in amer­ica? Or would you just rely on rebnet?

  23. Gary
    Posted April 23, 2009 at 5:09 pm | Permalink

    So how does this work? Don’t you need to go through the ‘Pick Your Plan’ pre­paid option, which requires a min­i­mum voice plan of $29.99?

  24. bitter consumer
    Posted April 23, 2009 at 5:33 pm | Permalink

    it sucks that we con­sumers have to go to such extremes just to avoid get­ting roy­ally fucked over by all the cor­po­rate mar­ket­ing bullshit.

  25. Dirty Donkey
    Posted April 23, 2009 at 7:20 pm | Permalink

    This was pho­to­shopped. RIDICULOUS. you guys are so gullible!!!!!!!!!!!!!

  26. Zeroquest
    Posted April 23, 2009 at 8:15 pm | Permalink

    Just wanted to say thanks! Just got this setup today. For those won­der­ing, sign up for the .25/min option, then once acti­vated call 611 to enable the data plan. It will deduct $20 from your account. Works great, but seems to burn through band­width fast. I tested a cou­ple apps over edge, all I can say is be CAREFUL and reset your phones usage every month when you renew. 100MB is NOT MUCH… (500KB using google maps and 1 street level view — 256KB using the woot app — if this helps anyone…)

    Thanks again!

  27. L5
    Posted April 24, 2009 at 1:57 am | Permalink

    TIP: You can get used iPhone 2G’s (as the author has) or even pre-JAILBROKEN iPhone 3G’s on eBay. If you buy a new one, you MUST have a con­tract, but eBay.com is the best source if you want to get an iPhone with­out a contract.

  28. P.B.
    Posted April 24, 2009 at 2:26 am | Permalink

    My dandy voice makes the most. Anti-choice granny’s panties moist

  29. what
    Posted April 24, 2009 at 3:17 am | Permalink

    What? This isn’t commo knowl­edge?
    Wow, I bought my iPhone just so I can jail­break it, wich ‚btw, also enables you to install apps for free, as long as you have a source for the .ipa-s ;)

  30. Todd Allcock
    Posted April 24, 2009 at 8:11 am | Permalink

    To help mit­i­gate the Skype over 2G issues, you might try Fring. Fring is a VoIP ser­vice that uses its own servers and low-bandwidth codecs to pro­vide usable voice over GPRS (even slower than EDGE.)

    It sup­ports Skype, so can use your Skype account through the more bandwidth-friendly Fring servers…

    I’ve used it on my Win­dows Mobile EDGE phone and the sound qual­ity is quite rea­son­able at EDGE– bet­ter than Skype, at least on WinMo, which had more latency and was often “choppy.”

  31. Posted April 24, 2009 at 11:19 am | Permalink

    This is fab­u­lous! Any chance this works on other phones besides the iphone?

  32. Taylor
    Posted April 24, 2009 at 3:32 pm | Permalink

    It looks like you have to use the GoPhone Pick Your Plan to get 100MB for $19. How did you get Medi­anet at that level on the pay as you go plan?

  33. will
    Posted April 24, 2009 at 4:20 pm | Permalink

    hi, is it pos­si­ble to use this sort of teather­ing way, but use a capped sim­card in the 2g phone?

  34. Posted April 24, 2009 at 7:07 pm | Permalink

    @Taylor Once you have suf­fi­cient funds in your Pay-as-you-go account you can just buy fea­tures by dial­ing 611. One of the fea­tures is 100mb of data for $20

  35. NRav
    Posted April 24, 2009 at 11:04 pm | Permalink

    does this work with the iPhone 3G?

  36. Posted April 24, 2009 at 11:49 pm | Permalink

    Hey Cody con­grats on mak­ing the front page of Stum­ble­upon. Kickin’ rad.

  37. Posted April 25, 2009 at 9:12 am | Permalink

    I am very impressed and very,very jeal­ous! KUDOS.I am now hooked on your posts.Thanks for help­ing “us” lit­tle guys.

  38. NRav
    Posted April 25, 2009 at 10:44 am | Permalink

    one more ques­tion, if you have EDGE dis­abled then how are you using
    SKYPE over EDGE when you’re not in a WiFi Zone?

  39. Posted April 25, 2009 at 10:51 am | Permalink

    @NRav Yes this works just the same on 3G, and once I had the Medi­aNet enabled on my account I just turned edge back on with bossprefs.

  40. NRav
    Posted April 25, 2009 at 10:58 am | Permalink

    How much usage does one call over 3G take on Skype?

    Also, which part of the data accounts for the 100MB, “sent” or “recieved”?

  41. Anonymous
    Posted April 25, 2009 at 1:08 pm | Permalink

    The iPhone is hardly the best phone in the world. Offers no USEFUL fea­tures that a 6 year old Treo or Black­berry doesn’t already have. And they’re not locked down over­priced lumps of plas­tic, either.

  42. nr
    Posted April 25, 2009 at 9:24 pm | Permalink

    Was hop­ing you could send out a google voice invite? Please? thank you

  43. John
    Posted April 26, 2009 at 12:12 pm | Permalink

    G

    Because the writer believes that the iPhone is the great­est phone in the world, does not mean that it is a state­ment of fact. I would con­sider it his opin­ion, as that is exactly what it is. He believes, as do many other peo­ple, that the iPhone is the great­est phone in the world. No big deal. My uncle has a twelve hun­dred dol­lar cell phone that he claims is the great­est in the world, who cares.

  44. mikke
    Posted April 26, 2009 at 6:40 pm | Permalink

    Quote.…the world’s best phone…unquote!!!

    Enough said!!!

  45. toni
    Posted April 26, 2009 at 8:55 pm | Permalink

    How much do you charge for the service?

    Thanks

  46. Posted April 27, 2009 at 10:11 pm | Permalink

    When I first tried the Skype app for a non-jb’d phone I didn’t rate it well and then I vis­ited Sin­ga­pore and din’t fancy pay­ing extor­tion­ate data roam­ing charges so I tried it again.
    This time I have to say I’m dead impressed — it’s not quite per­fect but given the cost advan­tage it’s absolutely fan­tas­tic.
    Enjoyed your blog and to the one or two peo­ple who ques­tion whether the iPhone is a great phone — whilst it may not be the world’s best phone (call qual­ity isn’t the best) it is one of the best pieces of kit you can carry. I defy the iPhone haters to try one for a week or two… believe me, you won’t want to give it back!

  47. Posted April 28, 2009 at 2:36 pm | Permalink

    Is any part of this illegal?

  48. NRav
    Posted April 29, 2009 at 10:33 am | Permalink

    Cody can you please answer my questions.

  49. c r
    Posted April 30, 2009 at 1:25 pm | Permalink

    iPhone text mes­sage app is the biggest pile of sh!t I’ve ever used.

  50. Posted May 4, 2009 at 7:31 pm | Permalink

    good!

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