Many farmers have used smartphones for a few years now. The list of applications that benefit farmers continues to grow—especially in the last six months as new Android-based phones became available. Sales of smartphones to farmers are booming, according to Roger Bundridge, general manager of Northwest Missouri Cellular in Maryville, Mo.

"One customer uses his phone to get soil testing results," Bundridge reported. "Another guy who grows potatoes sends moisture-content data to his buyer, Frito-Lay, to see if the time's right for harvesting." Many receive grain and livestock market information via email every couple of hours, and subscribe to weather alert services.

Northwest Missouri Cellular subscribers doubled in the last six years. Today, it serves 12,000 customers in five Missouri counties. So far, 12 percent use smartphones, and the percentage is rising rapidly.

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iPhone, Droid or BlackBerry—what's best?  

Everyone wants the latest handset, but if you live in a rural place, choosing your wireless carrier may be more important than choosing your phone. Some carriers don't cover all rural areas. Your first task is to find out which carrier offers the best coverage where you live and work. More about carriers later. But handsets, along with their operating systems and applications, are propelling the smartphone surge, so we'll start there. Internet-capable phones were available before Apple introduced the iPhone in Jan. 2007, but the iPhone and its applications menu sent interest soaring. For a while it seemed no one could catch up. However, the Nielsen Company reported that in the first six months of 2010, U.S. sales of phones using the Android operating system (OS) jumped to 27 percent of all smartphones, compared to 23 percent for iPhone and 33 percent for BlackBerry. Trend lines for both BlackBerry and iPhone were dipping slightly.

The two largest wireless carriers, Verizon and AT&T, and mid-sized carriers like Sprint and T-Mobile, dominate the U.S. market. In Missouri, U.S. Cellular counts as a mid-sized player. Verizon serves the largest number of wireless subscribers of any carrier in the nation—92 million as of July, according to Brenda
Hill, public relations manager for the company's Kansas and Missouri region. Verizon may dominate the U.S., but Marisa Giller, a spokesperson for AT&T, counters that AT&T serves 90 million wireless customers worldwide, and one billion devices connect to its network.

With these kinds of numbers, larger carriers can work with manufacturers to assure access to the latest phones. That leaves smaller wireless providers like Chariton Valley Wireless and Northwest Missouri Cellular scrambling. They often get the latest handsets six months after the big players, and then it takes a few months of testing before they can sell them. But such companies often provide service in geography neglected by larger corporations. 

And, even at rural companies, smartphone sales are sizzling. "We just launched the sale of Android-based devices, and we're seeing phenomenal growth," Johnson said. Bundridge reports similar success. "We just started selling BlackBerry six months ago, and we're selling a lot of our Android-based handset now." He expects to be selling five or six more Android models by year-end. "But handsets remain our biggest obstacle. If we could sell the iPhone, it would sell two to one compared to others."

"Customers want iPhones," Johnson admitted. "It's a huge challenge. AT&T holds exclusive rights to the iPhone, but AT&T does not offer service where we live."
Choose your weapon

Our experts agree that AT&T coverage seems limited in many rural areas, which limits iPhone sales. As a result, handsets using Android appear to be more popular with the rural set. Hot sellers at Chariton Valley stores include HTC Hero, Acer Liquid, and new LG handsets.

Beyond the OS issue, the market research company NPD reports that American consumers increasingly purchase handsets with touch screens or QWERTY keyboards (the kind used on a computer, where QWERTY appears at the top left). All 10 of the top-selling mobile phones in the fourth quarter of 2009 came equipped with a touchscreen, a QWERTY keyboard, or both.

We compiled a list of the top-selling wireless handsets from reports by NPD and FierceWireless, another research firm, all based on fourth-quarter sales, in no particular order: the RIM BlackBerry Tour, Storm, Bold, Pearl and Curve; LG enV3 and enV Touch; Apple iPhone 3GS and 3G; Motorola Droid; three Samsung models; T-Mobile My-Touch 3G; and Palm Pre. 

Are you tough enough?

Durability's important to people who work outside in tough conditions, like farmers. "We get requests for rugged phones all the time," Johnson said. He offers a Sonim model billed as the world's toughest phone. But ruggedized phones cost more and they're often bulkier.

Verizon's Hill confirmed that farmers express interest in ruggedized handsets, and Verizon stores sell a lot of Convoy and the Rock models. While the iPhone gets a lot of play, Giller pointed out that AT&T also sells other handsets. She suggested the Samsung

Rugby II as a rugged phone with noise suppression technology. When touchscreen phones first came out, people worried about durability. "Newer models have improved," Johnson said. Now users
fret just as much about dirt getting into keypad holes. If you don't want to shell out for a rugged handset, you can buy a protective case.  Johnson's company sells a lot of cases, which run from $20 to $45. "It's one of the best investments you can make," Johnson said. Giller recommends the Otterbox 1000 as the best
case to use in the field.

Handset prices may drop

Bundridge forecasts that smartphone prices may drop in half by year-end. Still, you may have to sign a one- or two-year contract to get a good deal. "Small companies like ours can't buy in bulk, so we pay more for handsets," Johnson said. The contract ensures that we'll get a return on our investment." For example, Johnson uses the Nexus 1 Android phone made by HTC, which costs his company more than
$500. But Chariton Valley offers a discount that competes with the big carriers, and absorbs the cost throughout the life of the contract. Small carriers now band together to attempt to purchase handsets in bulk, which may help them compete.   

Fred Vogelstein of Wired magazine analyzed pricing for us: "Almost all of these phones cost $199 with two-year carrier commitments and $600 without." Apps can help farmers Beyond dial tone access, the Android OS may offer another advantage over iPhone.

Apple sells more than 200,000 applications for iPhones. But iPhone app developers must go through Apple, and users pay 99 cents for most apps. More than half of apps designed for the Android OS are free, according to Verizon's Hill. (Verizon uses the Droid brand for its
Android phones.) "Google's application store now offers 60,000 Android applications," Hill said, "and they're growing by 10,000 a month. Developers like this more open development platform. Apps are really driving phone purchases." 

Farmers visiting Verizon stores in Missouri and Kansas like Mycast and Accuweather to access the weather. If you Google "apps for farmers," you may find Farmer's Partner, an Android app that allows you to enter data on production costs, sales history, and profit and loss. Apple offers an iPhone app called Tractor House for buyers and sellers of equipment. More farmer-friendly apps are likely coming, but farmers already find existing apps useful (see our sidebar on a dairy farmer's blog).  

Whether you farm or work in a high-rise, you may base your smartphone decision on who's winning the OS and app war. Vogelstein of Wired told us that Apple bets that consumers prefer a phone with integrated hardware and software, while Google/Android thinks handsets will become commodities, with their value lying in their OS.

He suggested other reasons to select iPhone versus Android, beyond just liking the phones.  "People choose the iPhone because they think the app store has a better selection," he said. "People choose Android because they like the Google integration."

Can you hear me now?

Which carrier offers the best smartphone calling plan? As suggested earlier, research who covers your area. Talk to your neighbors and stop by local wireless phone stores.  Also, visit myrateplan.com and enter your zip code to compare carrier prices and plans in your area. A recent visit revealed that for a
plan with unlimited voice, text and data, and no roaming charges in the U.S., AT&T charges about $105; Sprint, $99; and Verizon, $120 per month. But you may not need the deluxe plan. "For those who don't talk or text as much, the monthly price could be as little as $70," said Allan Keiter, president of MyRatePlan.

"Verizon has created the perception that they have the best coverage nationwide," he said. "The more relevant question, particularly for a rural user, is who has the best coverage where I need the phone? If Verizon doesn't work on my farm or in my town, the phone is little more than a paperweight." 

While Verizon may hold the rural edge today, Giller pointed out that AT&T continues to move forward. "AT&T just completed the acquisition of wireless properties that added 79 primarily rural services areas across 18 states," she said. "In the first six months of this year, AT&T invested nearly $225 million in its wireless and wireline networks to continue improving customer service in Missouri. The company invested nearly $75 million in its Missouri wireless network in the first half of 2010."

Keiter's and individual carriers' sites include coverage maps for your area. If you transmit data, look for the 3G data coverage map. "All carriers offer a 14-day trial period during which new subscribers can cancel service without a termination penalty," Keiter said.

Myrateplan.com doesn't include smaller companies that may offer the best service in your area. The two small companies we talked to set their rates to compete with national carriers.
Most calling plans no longer differentiate between local and long distance calls, but, if you travel, ask whether you'll be charged roaming fees when you're outside your provider's range. Among Northwest Missouri Cellular customers, 85 percent of calls are made in the company's service area; only 5 percent are made outside a 200-mile radius. 

As Bundridge pointed out, farmers may not need unlimited minutes. Many use cell phones less in the winter than when in the field.

You may save money with a plan that allows you to carry over unused minutes.
Small carriers might not be able to sell you the latest smartphone, but customers remain loyal for other reasons. Small companies often get involved in their communities, sponsoring golf tournaments and customer appreciation events. "A small company can do a lot more for the customer," Johnson said. "Last year a farmer was too busy in the field to visit us, so we rode in the combine with him
to discuss his service."

Chariton Valley Wireless serves 12 percent of the wireless market in its area. It's owned by a member-owned cooperative, Chariton Valley Telephone Corp, and both operate from four retail stores. The wireless company maintains 44 wireless towers, adding 12 in the
past year.

Northwest Missouri Cellular boasts an even higher penetration rate of 30 percent. Four small telephone companies and co-ops own Northwest Missouri Cellular; Verizon also owns a
stake. Northwest Missouri operates from one retail store and markets through 11 other agents, from insurance companies to car dealers.

"We compete with AT&T, Sprint and U.S. Cellular, but we're the busiest," Bundridge says. "It's not easy to compete easily with national carriers, so we keep our prices competitive, and with 30 cell sites, we have more coverage. People prefer good local service."

In the future, phones will be outdated
Whether you live on the farm or in the city, wireless technology is zooming beyond smartphones. Other types of wireless devices are also hot—including the AirCard, a pint-sized modem that slips into your computer's USB port to connect you to the Internet. AirCards
require a monthly fee beyond your cell or smartphone. Northwest Missouri Cellular supports 250 AirCard customers with fees starting at $29 a month and peaking at $69 for unlimited use.

"We're seeing a lot of farmers buy AirCard to replace dial-up," said Johnson. But if you're in an area without 3G wireless coverage, the AirCard may not work any faster than dial-up.
CTIA, a wireless industry association, surveyed its members at the end of 2009, and carriers reported 12 million AirCard-type devices, wireless-enabled laptops and modems, up 10 percent from six months earlier.
Within the next 10 years, the term "phone" may be a quaint memory. According to Pew Research, communicating by voice will be a small part of the reason we'll carry mobile devices. We'll keep a bud in our ear for voice messages, but data will dominate our needs.

Hill of Verizon confirms that 4G, the next wave of wireless technology, will move more data faster. "It will be in some markets by year-end, including St. Louis," she promises, adding that Verizon is upgrading towers and cell sites to prepare.

Johnson agreed that we'll see huge data demand. "Today we gauge use by minutes, but with more people texting and sending data, that measurement will decline," he said. "Carriers will get away from offering unlimited data," Bundridge predicted. "They'll charge
customers based on bandwidth use."

Northwest Missouri Cellular and Chariton Valley Wireless belong to the Rural Cellular Association (RCA). Steve Berry, president and CEO of RCA, worries about another trend where the two big carriers, Verizon and AT&T, are moving toward handsets that work exclusively on their networks. "These handsets won't roam on anyone else's spectrum, and you can't take them to another provider—they won't work. They're using technology to eliminate competition."