| Wrong again! You guys missed it, as usual. This has NOTHING to do with handset costs. I guarantee you that they wouldn't have had the ETF at $175 for so long if they were losing tons of money. Retail prices often have NOTHING to do with the actual price paid, especially for a big dog like Verizon. I would bet they are paying $250-$275 for the high-end handsets.
It has EVERYTHING to do with contracts. Verizon LOVES 2-year contracts. If you call up with a reception problem, their solution is a new handset and new 2-year contract. Fix the problem? HAHAHA! It's The Network (TM) -- how could there be a problem? A higher ETF keeps more people under contract -- right where Ivan wants you.
It wasn't until very recently that you could even start service without signing a contract EVEN IF YOU BROUGHT YOUR OWN VERIZON APPROVED HANDSET. The handset is how they lure people into the services they sell. It's like the free first hit. (and to many people a cell phone is crack). If you can buy a "compatible" handset on ebay, why sign a contract? You can start and stop service when you need/feel like it, or use it with a prepay and only use it when you need it. Prepaid/no-contract plans are growing in popularity and Verizon HATES that idea. |
