Monthly fee? About $65 or 6200 Yen.

Until the end of May, Softbank is running a campaign where you can get a free 8GB iPhone or a cheap 16GB iPhone. The Internet plan has been reduced in price during the campaign too. I thought about getting one. I currently have a Samsung 709SC and I’m spending around 3000 Yen a month for my phone plan with no Internet, so I’d have to more than double if I get a ‘free’ iPhone. Here’s the price breakdown.

White Plan : 980 Yen
You can call anybody on the Softbank network for free between 1AM and 9PM. If it’s after 9PM, or if you’re calling a non-Softbank phone, the cost is 21 every 30 seconds. (I currently have this.)

White Plan Family Discount : Free
This is an add on of the white plan. You can call family members for free if they have a White Plan and are under your account. (I currently have this, it comes in handy and it’s free.)

S! Basic : 315 Yen
This is like an Internet connection fee. You have to have it if you want to 1) Use the Internet and 2) Want to have an e-mail address for sending MMS/Text. It’s important because you can’t send a normal SMS to non-Softbank users. (I have this too.)

Packet Flat-rate Full : 1029-4410 Yen
I spoke to a guy at Softbank and he said you can use unlimited Internet for up to 4410 a month. If you use less than 4410 Yen a month, you’re charged less. But if you have an iPhone, I bet you’ll be using the packet plan a lot.

Handset Cost : 1280-1760 Yen
This is a monthly fee for 24 months. The 8GB is 1280, the 16GB iPhone is 1760 a month. “But Steve, you said FREE!?” Well, they don’t want you to run off with the iPhone, so to make the iPhone free Softbank applies a discount.

Monthly Discount : 1280 Yen
This is for 24 months. You are actually paying full price for the phone, but this discount cancels out that price, making it free. It brings the 8GB 1280 Yen cost to 0, and it makes the 16GB only 480 Yen per month.

Tricky monthly phone charge and discount.
It’s tricky because even though it’s a 2 year contact, they don’t start billing you for the physical phone until the 3rd month. This makes it 26 months total until you’re done paying off the phone.

The final price estimate
8GB : 2324 – 5705+ Yen per month
16GB : 2804 – 6185+ Yen per month

In the end it costs more than the price estimate because you’ll probably call more than just Softbank users, but this gives you an idea of the price. If you cancel, you are charged a cancel fee of 9975 Yen and you must pay for the remainder of the phone. So if you get the free 8GB iPhone and you cancel on month 12, you owe for the remaining 12 months + 2 months (because they didn’t charge you the first 2 months). So you owe 1280 x 14, or 17920 Yen in addition to the 9975 cancel fee. OUCH!

I thought about getting the iPhone, but I already have a phone which I’d have to pay the remaining 9 months on. Lame. I already have a 16GB iPod Touch. It’s nice, and with all of the Apps available I’ve completely replaced my Palm PDA. I think I’ll just stick with the iPod Touch for now.

For anybody curious, here are some Softbank iPhone commercials.