BodyBumper
join:2004-06-21
Beverly Hills, CA | -
Do consumers want to pay full price on their phones?
I wouldn't mind because I hate being tied up in long term contracts. |
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tmh
@comcast.net
 from:
TKJunkMail 
| Already possible
They didn't mention that most of the time the provider subsidizes the cost of the phone. In return, they'd like you to stay on their service for a while.
If you want to pay $600-$900 for an unlocked GSM phone, you can do that now. You can take it to T-Mobile or AT&T anytime, no problem. |
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Camelot One
Premium,MVM
join:2001-11-21
Sarasota, FL
clubs:
| Aside from the IPhone, where is this happening?
Any other cell phone you can buy unlocked. The difference in the price between unlocked and "under contract" is made up by the carrier subsidizing the phone itself with your contract. As far as I know the IPhone is the only carrier locked phone (officially anyway), so is this a "what might happen" complaint?
I have no problem with the current model, other than the AT&T IPhone issue. (which I still don't understand the logic in) Sure my ISP doesn't get any control over what PC I connect to their network, but they also aren't offering me a $1000 PC for $59.95. Cell phone companies do exactly that, and thus recoup their $$ through the contract.
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Intel Quad Core QX6700 @3500Mhz/Asus P5N32-E SLI/4x 1024Mb Corsair/WD 74Gb Raptor/PNY 7800GTs SLI/Antec 550 True Control/Custom water cooler |
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Camelot One
Premium,MVM
join:2001-11-21
Sarasota, FL
clubs:
| reply to BodyBumper
Re: -
There is nothing stopping you from buying a cell phone at full price, but you are still stuck with atleast the first round on a contract just to start service. (but you can get away with the 1yr that way)
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Intel Quad Core QX6700 @3500Mhz/Asus P5N32-E SLI/4x 1024Mb Corsair/WD 74Gb Raptor/PNY 7800GTs SLI/Antec 550 True Control/Custom water cooler |
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Goliath28
@rr.com
| IMHO
This never really made sense to me either. I am paying for the service, not the phone. I should be able to drop my carrier today put in a new code and puff am on another carrier no issue. Does the device I use really matter? No! It would behoove the carrier (ATT, SPRINT, etc) to accept any device, they would attract alot more customers. |
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mindfrost82
join:2003-04-19
Cortland, IL
2 edits | reply to Camelot One
Re: Aside from the IPhone, where is this happening?
With any CDMA carrier, you have to use their phones. Sprint, Verizon, and Alltel (among others) won't let you activate a phone unless it has their name on it. The ESN has to be in their system for them to activate it. So you can't buy an unlocked phone and activate it with them, and you can't use their phones on any other network.
EDIT: And the iPhone is a different example. The iPhone is locked because that's how Apple wanted it, not necessarily AT&T. So that is the case of a phone manufacturer locking the phone, not the cell phone provider.
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F R O S T Y
www.mindfrost82.com |
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Karl Bode
News Guy
join:2000-03-02
Host:
Road Runner
PC gaming GAMES
PC gaming Tech
| reply to tmh
Re: Already possible
quote:
They didn't mention that most of the time the provider subsidizes the cost of the phone. In return, they'd like you to stay on their service for a while.
Actually, he specifically addresses this: quote:
The carriers defend these restrictions partly by pointing out that they subsidize the cost of the phones in order to get you to use their networks. That’s also, they say, why they require contracts and charge early-termination fees. Without the subsidies, they say, that $99 phone might be $299, so it’s only fair to keep you from fleeing their networks, at least too quickly.
But this whole cellphone subsidy game is an archaic remnant of the days when mobile phones were costly novelties. Today, subsidies are a trap for consumers. If subsidies were removed, along with the restrictions that flow from them, the market would quickly produce cheap phones, just as it has produced cheap, unsubsidized versions of every other digital product, from $399 computers to $79 iPods.
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Jason Levine
Premium
join:2001-07-13
USA
| reply to tmh
Actually, the article does mention subsidies.
The carriers defend these restrictions partly by pointing out that they subsidize the cost of the phones in order to get you to use their networks. That’s also, they say, why they require contracts and charge early-termination fees. Without the subsidies, they say, that $99 phone might be $299, so it’s only fair to keep you from fleeing their networks, at least too quickly.
But this whole cellphone subsidy game is an archaic remnant of the days when mobile phones were costly novelties. Today, subsidies are a trap for consumers. If subsidies were removed, along with the restrictions that flow from them, the market would quickly produce cheap phones, just as it has produced cheap, unsubsidized versions of every other digital product, from $399 computers to $79 iPods.
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Jason Levine
Premium
join:2001-07-13
USA | reply to Karl Bode
Got it in just a minute before me, Karl.  |
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dcurrey
Premium
join:2004-06-29
 ·ViaTalk
2 edits | Shouldn't the price drop?
How much does the company artificial jack up the price to make the phones look like a good deal?
Would this also cause the cell phone to compete with each other in price and features? Samsunge Sanyo lg would have to compete for business without the carrier forcing you to use the ones they offer only.
Not to mention if we don't like the current carrier without a contract we could cut and run. No problem. Now they have to offer decent service also. |
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mindfrost82
join:2003-04-19
Cortland, IL
| reply to Goliath28
Re: IMHO
Sometimes it does matter, depending on the phone. You can't use a GSM phone on a CDMA network, and you can't use a CDMA phone on a GSM network.
It would be nice if they made more phones that supported both CDMA and GSM, then this wouldn't be an issue. So if I have Sprint now and wanted AT&T, I would have to get a new phone anyway, with or without the rule.
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F R O S T Y
www.mindfrost82.com |
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Aleck79
join:2003-07-23
College Station, TX
| reply to Camelot One
Re: Aside from the IPhone, where is this happening?
the problem is that companies have to work with the cell phone industry in order for the hardware vendor to even have a shot at having decent sales of the phone. It hinders hardware competition and limits consumer choice.
While yes, you may see it as a disadvantage that you will have to pay more for the device, but eventually competition will bring prices down as hardware vendors are able to sell their devices and get them out the door and into consumer's hands with more ease.
Ideally there should be an open standard for each providers network and testing to that meet that standard. That would make it a hell of a lot easier for the hardware people.
It would also make the hardware vendors free to explore added functionality. Anyone remember when it was hard as hell to get bluetooth to work with any device the customer chooses? I think it was Verizon that forced hardware vendors to lock down bluetooth. |
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wifi4milez
Big Russ, 1918 to 2008. Rest in Peace
join:2004-08-07
New York, NY
 ·Verizon FIOS
 ·Sprint Mobile Broa..
 ·RoadRunner Cable
·BroadVoice
| reply to Camelot One
Re: -
said by Camelot One :There is nothing stopping you from buying a cell phone at full price, but you are still stuck with atleast the first round on a contract just to start service. (but you can get away with the 1yr that way) Not anymore! Verizon and Sprint are "officially" no longer allowing new customers to sign up for less than 2 years!You can still wiggle your way into some 12 month terms on select business plans, but for the most part the 12 month terms have disappeared. I suspect ATT and Tmobile are not far behind.....
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я люблю Денди! |
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woody7
Premium
join:2000-10-13
Torrance, CA
 ·EarthLink
·DSL EXTREME
| pffttt.....
I think the point that is trying to be made is like the tail wagging the dog or the other way around. they really could if they wanted to, is to let you bring your own phone. As with any appliance, the price will eventually go down. To me, if someone wanted all the bells and whistles,or a "free" phone, they can opt for the subsidized phone. I have a friend overseas that has a phone only we can dream about( will never be available here), and it wasn't that expensive. As I have stated before, it is about protecting an archaic revenue stream.
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BlooMe |
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wifi4milez
Big Russ, 1918 to 2008. Rest in Peace
join:2004-08-07
New York, NY
·Verizon FIOS
·Sprint Mobile Broa..
·RoadRunner Cable
·BroadVoice
| reply to mindfrost82
Re: Aside from the IPhone, where is this happening?
said by mindfrost82 :With any CDMA carrier, you have to use their phones. Sprint, Verizon, and Alltel (among others) won't let you activate a phone unless it has their name on it. The ESN has to be in their system for them to activate it. So you can't buy an unlocked phone and activate it with them, and you can't use their phones on any other network. EDIT: And the iPhone is a different example. The iPhone is locked because that's how Apple wanted it, not necessarily AT&T. So that is the case of a phone manufacturer locking the phone, not the cell phone provider. You are correct. I have multiple phones with multiple vendors for just this reason. Personally, I have had no contract with Tmobile for about 5 years (since my initial 12 month ran out ), and the same for my other providers. I usually pay $500 to $1000 for the phones I buy. Why you ask? Well, primarily because I dont need the 2 year contract extension just to get a subsidy on the phone. Furthermore, when you are an out of contract subscriber the carriers will do anything to keep you from leaving. I am at the point with Tmobile where I can simply call them and I will get the newest, pre-release phones for FREE shipped overnight to my door. Whenever they give me an issue I explain that over my 6 years of service at $100 to $400 a month I have more than paid for all the phones I could ever want. I then "mention" that I am sure Verizon or ATT would love to have my revenue stream, and thats about the time they ask who my preferred overnight shipping provider is!
CDMA (Sprint, Verizon) is a little different. Since you generally cant buy overseas CDMA phone and use them here, I just simply buy new phones at full retail on principal. I wont extend my contract, and if that means I pay a little more for a phone so be it. You can always find a used CDMA phone on Ebay and activate it, assuming its for your provider. The lesson here is dont get pushed around by the cell providers, if you spend more than $100 per month demand free phones (nice ones, not the crap $40 ones), and do not renew your contract for any reason!
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я люблю Денди! |
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alanhdsl
Premium
join:1999-10-09
Phoenix, AZ
·Qwest.net
| Spell out the subsidy
Since the "subsidy" is really just a way of paying over time, make it explicit. You sign a one year contract with a "free" $120 phone for $50/mo. ($40/mo. + 12 payments of $10), or a one year contract where you bring your own phone for $40/mo.
Those that would prefer to pay over time can, and those that don't want to don't have to. |
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TKJunkMail
Enjoy the sun
Premium
join:2002-03-03
Avalon, NJ
·Sprint Mobile Broa..
·Comcast
|  reply to tmh
Re: Already possible
And the last time I renewed a few months ago, I had a choice of over 50 phone models(1/2 of which were no charge for the contract renewal). So I don't see this big technological deficit he speaks of.
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Internet News
My BLOG
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jlanci
join:2005-08-30
Staten Island, NY | picture
Am I the only one that thinks that the picture for this article looks like a really cheap knock off of the iPhone? |
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S_engineer
join:2007-05-16
Chicago, IL | it is a knock off, but I'm correct, thats the model that has wifi access along with a few other bell and whistles the iphone doesen't!
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Where have the adults gone? |
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S_engineer
join:2007-05-16
Chicago, IL | *if I'm correct...sorry |
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