redholm
join:2004-10-31
Sunnyvale, CA Reviews:
 ·AT&T U-Verse
 ·T-Mobile US
1 edit | reply to leibold
Re: AT&T dropping Straight Talk due to phone unlocking law? I like that you showed how you came up with your numbers. I did not use ETF but I show my math.
I think ETF is related to what the phone actualy cost AT&T but the phone subsidies will be higher for two reasons.
1) AT&T want to inflate the list price of the phone to increase the perceived value of subsidized phones.
2) You are borrowing money from AT&T and they want interest and money to cover the people who default on their contract.
To get the phone subsidy you need to find the lowest price AT&T is willing to sell you the service and look at what the least expensive plan cost. The difference is the phone subsidy.
On a family plan an extra phone cost $10. AT&T did not sell you anything, no extra minutes, nothing.
AT&T charge $10, cost of service $0, gives a phone subsidy of $10.
The lowest cost for data is $10 per GB. The lowest cost individual data plan is $20 for 300 MB. The cost for AT&T for 300 MB is at most $3, in reality it cost much less.
AT&T charges $20, cost of service 0-3 dollars, gives a phone subsidy 17-20 dollars.
/edit typo |
