 ptrowskiGot Helix?Premium
join:2005-03-14
Putnam, CT
kudos:4
 ·VOIPo
| reply to fAcEtIOUs
Re: Lame said by fAcEtIOUs:said by Mike_:Lmao, talk about being scared of people leaving? What do they expect people are actually not going to like "the network".. How could that be? /sarcasm It is more about protecting against fraudsters looking to make a quick buck by flipping the phone and selling at a profit and not REAL customers who will stay or go based on service quality. » I agree.. VZ gets their initial fees, and they get an ETF. I don't see they really "hurting" in that situation, subsidized phone or not.
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"So, Lone Starr, now you see that evil will always triumph because good is dumb."
Have you been touched by his noodly appendage? »www.venganza.org |
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dynodbPremium,VIP
join:2004-04-21
Minneapolis, MN | said by ptrowski:VZ gets their initial fees, and they get an ETF. I don't see they really "hurting" in that situation, subsidized phone or not. The non-subsidized price for the droid is $600 but they're selling for $200 after rebate and subsidy. If the $200 price + the old $175 ETF didn't cover the wholesale cost of the phone, they'd be losing money to people selling them on e-bay to make money.
With a $375 ETF plus the $200 price, they're coming in close to the retail price of the phone. Can't really blame them- why should they subsidize profits for people just out to sell the phone? |
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ptrowskiGot Helix?Premium
join:2005-03-14
Putnam, CT
kudos:4 Reviews:
·VOIPo
| said by dynodb:said by ptrowski:VZ gets their initial fees, and they get an ETF. I don't see they really "hurting" in that situation, subsidized phone or not. The non-subsidized price for the droid is $600 but they're selling for $200 after rebate and subsidy. If the $200 price + the old $175 ETF didn't cover the wholesale cost of the phone, they'd be losing money to people selling them on e-bay to make money. With a $375 ETF plus the $200 price, they're coming in close to the retail price of the phone. Can't really blame them- why should they subsidize profits for people just out to sell the phone? So that is the price VZ is getting them for? Doubtful.
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"So, Lone Starr, now you see that evil will always triumph because good is dumb."
Have you been touched by his noodly appendage? »www.venganza.org |
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dynodbPremium,VIP
join:2004-04-21
Minneapolis, MN | said by ptrowski:So that is the price VZ is getting them for? Doubtful. I don't know what they're paying for them, but it's no doubt less than $600. It's not at all hard to believe that they might be paying more than $375 though. |
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ptrowskiGot Helix?Premium
join:2005-03-14
Putnam, CT
kudos:4 Reviews:
·VOIPo
| said by dynodb:said by ptrowski:So that is the price VZ is getting them for? Doubtful. I don't know what they're paying for them, but it's no doubt less than $600. It's not at all hard to believe that they might be paying more than $375 though. I would be extremely surprised if it was. My guess, and it is only a guess, is that they get them at a much lower price than $375.
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"So, Lone Starr, now you see that evil will always triumph because good is dumb."
Have you been touched by his noodly appendage? »www.venganza.org |
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| It doesn't matter what they pay wholesale for the phone. What matters is their expected revenue over the contract period. If ebay flippers are substantially decreasing that then there's the rationale behind the increased ETF. |
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 RARPSL
join:1999-12-08
Suffern, NY | reply to dynodb
said by dynodb:said by ptrowski:VZ gets their initial fees, and they get an ETF. I don't see they really "hurting" in that situation, subsidized phone or not. The non-subsidized price for the droid is $600 but they're selling for $200 after rebate and subsidy. If the $200 price + the old $175 ETF didn't cover the wholesale cost of the phone, they'd be losing money to people selling them on e-bay to make money. With a $375 ETF plus the $200 price, they're coming in close to the retail price of the phone. Can't really blame them- why should they subsidize profits for people just out to sell the phone? If the non-subsidized cost is $600 and the subsidized and rebated cost is $200 (with a 2 year contract) with a $375 EFT, the monthly reduction should be $15.65 not just $10 (ie: It should go down based on how long you have paid under the contract so the EFT is fully paid off at the end of the contract - At $10 a month, you still owe $145 after 23 months). The supposed reason for an EFT is to pay back the unearned subsidized discount you got by not buying at the full price. |
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Chaldo
join:2008-03-18
West Bloomfield, MI | reply to ptrowski
said by ptrowski:said by fAcEtIOUs:said by Mike_:Lmao, talk about being scared of people leaving? What do they expect people are actually not going to like "the network".. How could that be? /sarcasm It is more about protecting against fraudsters looking to make a quick buck by flipping the phone and selling at a profit and not REAL customers who will stay or go based on service quality. » I agree.. VZ gets their initial fees, and they get an ETF. I don't see they really "hurting" in that situation, subsidized phone or not. It's because Verizon can't stand it when ANYONE makes a single buck of them. They want to rule your money, and give you nothing in advantages besides service in return. This type of stuff is way easier on GSM and happens so much more with GSM carriers, then Verizon. Trust me Verizon does not have a big issue with this. Yes I know GSM is used way more then CDMA. The problem is they can control it better on CDMA. Verizon closes any holes that are an advantage to customers, that's just how they roll. |
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