Is everything better in Europe?

Last week I returned from the GSMA World Congress in Barcelona, Spain. In case you don't know, GSMA (formerly 3GSM) is the premiere cell phone trade show in the world. It's all about GSM handsets but that doesn't stop the giants of the mobile world from coming to Spain to show their best and brightest devices.

As expected, GSMA made me just a bit jealous. Though I've always agreed that the selection of carrier-supported cell phones really is far better in Europe, it was difficult to see it so plainly at the show. Sony Ericsson, Nokia, and Samsung (among others) presented some truly awesome devices that I know won't arrive in the United States for some time. I also browsed several European carriers' pavilions, which was equally disheartening. Both in the Vodafone plaza and at the T-Mobile building, I faced a dazzling array of models that are far ahead of anything we have stateside. Vodafone had the Nokia 5310, the Samsung F700 and the Samsung SGH-P110. Meanwhile, over at T-Mobile, I spied a Nokia 5310, the LG KF600 (the GSM version of Verizon's LG Venus), the Sony Ericsson K550, and the Samsung J700.

So if Europe gets better devices, does that mean its entire mobile industry is superior? Do they have better coverage and better plans? While I've definitely learned that the former is true, I'm not so sure about the latter. Both times in the last year that I've written columns comparing the U.S. and European markets (once was on devices, the other was on messaging plans), I've received a few e-mails and comments from readers who maintain that not everything is sunnier across the pond. Here's a sampling.

David writes, "Don't believe those here who say that U.S. cell phone plans are much more expensive than those in Europe. A plan with O2 for 400 anytime minutes and 500 texts is $59 per month. A similar plan (400 anytime minutes) with O2 in the Czech Republic is $92 per month.

Gabriel from Berlin writes, "True, incoming text messages (and calls) are free [in Germany], but you get far fewer minutes and you never get free weekends and free long distance…I greatly prefer the U.S. system and feel that U.S. carriers actually spend far less time screwing you over than foreign carriers."

Finally, Pavla wrote, "Although we pay for incoming tests in the United States, I have to say, that in comparison to the European system, it is still comparatively cheaper and much less of a hassle...This system over here is ridiculous. I shouldn't have to pay different prices to text friends because (they) belong to different carriers….I think your comparisons to the European system, and complaints about how ridiculous the American system is, are a little misconstrued and misguided. The rest of the world is doing much worse.

E-mails such as these got me thinking that maybe our European friends do have it worse in some areas. Could it be that their plans really are more expensive and more restrictive? To find an answer, I compared low-range calling plans from T-Mobile and AT&T with similar plans from three carriers in the United Kingdom. What I found was surprising.

T-Mobile USA's My Faves 600 plan is $49 per month. That entitles you to 600 anytime minutes plus unlimited nights and weekends. If you use up your calling minutes, additional calls are 40 cents per minute. Text messages cost 15 cents per message sent unless you have a messaging plan, which start at $4.99 per month for 500 messages. Over at AT&T, $59.99 per month will get you 900 anytime minutes with unlimited nights and weekends. Additional calling minutes are 45 cents per minute and text messages are 20 cents per message sent. As for texting plans, the cheapest is $5 per month for 200 messages. Both plans assume that you sign a two-year contract.

Though these two U.S. plans aren't exactly the same, both are one step above the cheapest plan available, so they make a good benchmark. While many Americans may think that $59.99 is a lot to ask for monthly cell phone service, the T-Mobile and AT&T plans are actually quite a bargain. Not only would British plans take a bigger bite out of your wallet, but they also get you far less for your money. Though this comparison is a tad skewed because of the current weakness of the dollar, David, Gabriel, and Pavla have a few points. Here are three plans from Vodafone, T-Mobile UK, and O2, all of which are one step above the cheapest plans.

For $47.63 (25 pounds) per month Vodafone UK offers a plan with 500 anytime minutes. Though that's pricey by itself, keep in mind that those 500 minutes are all you get. With the Vodafone plans I researched, there is no such thing as free nights and weekends (ouch!), so you'll have to choose your calls carefully. Vodafone does offer free weekends with prepaid plans, but you must select it as an option. You must also spend $9.96 (five pounds) each week to qualify and Vodafone can revoke the option under some circumstances. Another difference from the United States, there is a pricing scale for additional minutes beyond your monthly allotment. You would pay 36 cents per minute to call landlines, your voicemail, and other Vodafone customers, but calls to other mobiles are 79 cents per minute. The plan does include 500 texts at no additional charge but extra texts are $0.24 each.

T-Mobile UK's Flext 25 plan is $49.63 per month (25 pounds), which entitles you to 300 anytime minutes. Free weekends are available only for pricier plans, but even then, you're limited to 5,000 free weekend minutes per month. For text messaging, you have a couple options. You can get 50 texts for a $6.88 (3.50 pounds) per month or you can choose to have 600 free texts instead of the 300 anytime minutes. Additional calling minutes are 40 cents per minute while additional texts are 20 cents. Again, it's not very economical, even when compared with the Vodafone option.

Over at O2 its Online 45 plan is $89.56 (45 pounds) per month. Though that's the priciest of the three UK plans I researched it offers the most for your cash. You get 1,200 anytime minutes plus 1,000 texts. Though nights and weekends are not part of the deal, the Online 45 plan does include unlimited calls to another O2 subscriber. If you go beyond your minute allotment, additional calls are 39 cents to 69 cents per minute. Like with Vodafone, the rate depends on whom you call. Additional texts are 24 cents each but, of course, you don't get charged for received messages.

So after my brief and very unscientific survey cell phone plans at British carriers are more expensive than comparable plans in the United States. Yes, the average purchasing power in Britain my be higher than in the United States, but Britons also get far fewer frills than we get stateside. For example, free nights and weekends aren't always part of the picture. Maybe we're spoiled in America (you can't discount cultural differences) but if that happened here, I think customers would revolt en masse. Also, what's with the practice of charging different rates to call and text different people? That's unheard of in the United States.

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But on the upside, all three British carriers that I surveyed are more flexible in their contract terms. An 18-month contract seemed to be the most common, but Vodafone and O2 offered 12-month options. What's more, the phone "crippling" that U.S. carriers so commonly perform here is much rarer outside of America. Also, British carriers aren't so dependent on locked phones and they make it very easy to get just a SIM card to use with an existing mobile. Though AT&T recently added this option, U.S. carriers haven't been as free wheeling with their SIM card cards in the past.

So I have to concede that David, Gabriel, and Pavla appear to be correct on a few points. They may get better phones in Europe--and that's a huge plus by the way--but they pay more to use them and get fewer benefits.