Gilitar
join:2000-11-20
Mobile, AL | Agreement required because of churn
Agreements have always been required because of two reasons:
1. To keep churn low
2. Subsidize price of acquisition
There is no way they would open themselves up to the churn. |
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grumpy3b
join:2001-12-11
Lompoc, CA | geeze don't you realize the 2-year contract is to cover the cost of the discounted SIM card...yeesh...
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fiberguy
My views are my own.
Premium
join:2005-05-20
| reply to Gilitar
Honestly.. #2 is all they talk about. #1 is also called "roping a customer"... they've never publicly stated to keep churn low - but it's true. It's also a way to not have to compete... lazy and greed. Yes, I'm using the term greed here for once - because it is.
They've offered NOTHING and want a contract. Seems more and more businesses want contracts for no reason.
"The problem? The deal requires you sign a two-year contract which somewhat defeats the purpose. Carriers have always argued that the contract is to help subsidize the phone. But in this case you're not getting one."
Back in 2005, I already satisfied a Nextel agreement of 1 year. I took my phone to it's own account - already owning the phone, they wanted a 2 year agreement to simply turn on the service to a phone I already owned.
This isn't anything new to AT&T but sure is right up their alley. |
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nasadude
join:2001-10-05
Rockville, MD
 ·Comcast
| reply to Gilitar
said by Gilitar  :.. 1. To keep churn low ... the way to keep churn low is to have good customer service and reasonable prices - oops, no wonder they have to resort to 2 year contracts. |
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en102
Canadian, eh?
join:2001-01-26
Valencia, CA | reply to grumpy3b
SIM cards used to be ~ $20-$25. I don't see how a 2 year contract makes up for it.
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Canada = Hollywood North |
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en102
Canadian, eh?
join:2001-01-26
Valencia, CA
·RoadRunner Cable
 ·DSL EXTREME
| reply to fiberguy
I suppose you could go 'Prepaid' with the pick your plan style.
I do agree... signing a contract WAS to pay for the phone. If anything, paying $25 for a SIM and having it active for a month to month _should_ be ok. If I have to sign a contract AND bring my own phone, then AT&T should discount the service significantly.
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Canada = Hollywood North |
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alrandolph
join:2004-07-11
Brooklyn, NY
 ·Callcentric
 ·Cingular Wireless
| reply to grumpy3b
Way to go AT&T Wireless, I have to pay $5 for the sim card, then be locked into a contract for 2 years with my own device.
I see the retainer perks you give to your executives to keep them from leaving the company has really paid off if this is the best they can do  |
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dvd536
as Mr. Pink as they come
Premium
join:2001-04-27
Phoenix, AZ | reply to Gilitar
Let me get this straight, I bring my own handset and STILL have to get locked into a 2 year contract???
I DON'T THINK SO!
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You can never be too rich, too thin or have too much Bandwidth |
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kamm
join:2001-02-14
Brooklyn, NY
·T-Mobile US
| reply to Gilitar
said by Gilitar :Agreements have always been required because of two reasons: 1. To keep churn low 2. Subsidize price of acquisition There is no way they would open themselves up to the churn. WHat in the hell are you talking about?
Buying SIM only without any contract for some change - fee usually varies between $5-25$ worth of local currency in worst case but usually it'sfree if you are a new subscriber - is an everyday practice in EVERY OTHER industrialized country of the world.
It's the usual fuxed-up US corporate practice, the straight result of complete lack of market oversight - your FCC long became the telcos' arm instead of being the watchguard of fair market practices to ensure YOUR interests are protected... you know, things we HAVE and pay our government...
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xsiddalx
join:2005-03-11
Chicago, IL
·AT&T Yahoo
| said by kamm :It's the usual fuxed-up US corporate practice, the straight result of complete lack of market oversight - your FCC long became the telcos' arm instead of being the watchguard of fair market practices to ensure YOUR interests are protected... you know, things we HAVE and pay our government... Unless you are in market with less than 5 carriers, what's the problem? Just switch.
If you have less than 5 choices, where you at? Who are your choices?
Personally, as long as I have Tmo, I'll continue to overpay on my month to month contract...because of their cust service, even after fighting with one of their CSRs. |
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xsiddalx
join:2005-03-11
Chicago, IL
·AT&T Yahoo
| reply to fiberguy
What did you ultimately do? Stay with Nextel?
said by fiberguy :Honestly.. #2 is all they talk about. #1 is also called "roping a customer"... they've never publicly stated to keep churn low - but it's true. It's also a way to not have to compete... lazy and greed. Yes, I'm using the term greed here for once - because it is. They've offered NOTHING and want a contract. Seems more and more businesses want contracts for no reason. "The problem? The deal requires you sign a two-year contract which somewhat defeats the purpose. Carriers have always argued that the contract is to help subsidize the phone. But in this case you're not getting one." Back in 2005, I already satisfied a Nextel agreement of 1 year. I took my phone to it's own account - already owning the phone, they wanted a 2 year agreement to simply turn on the service to a phone I already owned. This isn't anything new to AT&T but sure is right up their alley. |
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gsmuser
@verizon.net
| reply to en102
I activated without contract after some hassle a few years back. It took quite some doing but eventually I was transferred to someone who set it up for me. They sent me a SIM card and I signed up with no contract. Of course I paid the original $20-25 for the card + activation fee. I guess now that they're $5 they've got to subsidize the cost. Yeeaah that's it... |
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grumpy3b
join:2001-12-11
Lompoc, CA
·DSL EXTREME
·Millenicom
| reply to en102
dude...a real Canookian might have gotten the ironic scarcasm of my comment.
For the irony challenged I will break it down...simply replace the words "SIM card" with "cell phone" and it is the same argument for the need of contracts.
If anyone seriouly believes any carrier pays more then $5-$20 for a basic to medium level phone and $50-$100 for a top tier phone offered with plans, you drank the Koolaid.
I offer as an example the disposable pay-as-you-go phones...for $20-$30 you get a perfectly decent phone and believe me not only is the store making money but so is the company even if the buy only uses it for 30-mins and drops it in a drawer for the next 20-years never to be used again.
OK...back to being silly and ironic...  |
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vliktor
join:2005-07-27
Philippines
·SmartBro
| reply to en102
Here in the Philippines, SIM cards (at least prepaid ones) are sold like regular merchandise. You can get one for as cheap as $ 1.00-2.00.
Each cell shop here have to have unlocked handsets for sale or else they'll go bust. Cellphone plans aren't very popular here, unless you're a business man or is just someone who has a lot of contacts. |
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CConverse
join:2006-01-31
Syracuse, NY
| reply to alrandolph
said by alrandolph :I see the retainer perks you give to your executives to keep them from leaving the company has really paid off if this is the best they can do LOL |
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