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story category AT&T's New SIM Card Plan
Still requires you sign two-year contract
(old news - 05:09PM Monday Jan 21 2008)
tags: prices · business · wireless · hardware
GigaOM notes that AT&T is waving their PR flag to announce that the company is now offering a new plan that lets you buy a $5 SIM card from the carrier. The idea is that users with unlocked GSM handsets can sign up without having to cough up money for a new handset. 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.
This would be a great idea if AT&T didn’t insist on a two-year-contract with the SIM card. Instead of being great, this is just a goofy idea. As a customer, why would you sign up for a two-year contract and forgo a free (or highly subsidized) handset that you can sell on eBay and use the proceeds to defray the cost of, say, a new handset of choice?
There's been a lot of talk about open access from the carriers, but the rhetoric still somewhat outshines the reality.

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Forums » AT&T's New SIM Card Plan
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Post a:
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.
grumpy3b

join:2001-12-11
Lompoc, CA

Re: Agreement required because of churn

geeze don't you realize the 2-year contract is to cover the cost of the discounted SIM card...yeesh...


en102
Canadian, eh?

join:2001-01-26
Valencia, CA

Re: Agreement required because of churn

SIM cards used to be ~ $20-$25. I don't see how a 2 year contract makes up for it.
--
Canada = Hollywood North

gsmuser

@verizon.net

Re: Agreement required because of churn

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...
grumpy3b

join:2001-12-11
Lompoc, CA
·DSL EXTREME
·Millenicom

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...

vliktor

join:2005-07-27
Philippines
·SmartBro

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.
alrandolph

join:2004-07-11
Brooklyn, NY
·Callcentric
·Cingular Wireless

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

CConverse

join:2006-01-31
Syracuse, NY

Re: Agreement required because of churn

said by alrandolph See Profile :

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
fiberguy
My views are my own.
Premium
join:2005-05-20

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.

en102
Canadian, eh?

join:2001-01-26
Valencia, CA
·RoadRunner Cable
·DSL EXTREME

Re: Agreement required because of churn

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.
--
Canada = Hollywood North
xsiddalx

join:2005-03-11
Chicago, IL
·AT&T Yahoo

What did you ultimately do? Stay with Nextel?

said by fiberguy See Profile :

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.
nasadude

join:2001-10-05
Rockville, MD
·Comcast

said by Gilitar See Profile :

..

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.

dvd536
as Mr. Pink as they come
Premium
join:2001-04-27
Phoenix, AZ
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!
--
You can never be too rich, too thin or have too much Bandwidth

kamm

join:2001-02-14
Brooklyn, NY
·T-Mobile US

said by Gilitar See Profile :

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...
--
xsiddalx

join:2005-03-11
Chicago, IL
·AT&T Yahoo

Re: Agreement required because of churn

said by kamm See Profile :

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.

morbo
Complete Your Transaction

join:2002-01-22
00000
clubs:

another

another great idea, brought to you by AT&T.

chd176

join:2003-01-10
Winfield, AL

Gotta love it

Even if you have your own SIM (AT&T unactivated) and phone you still have to sign at least a one year agreement to have unlimited M2M
--
1.5/256 CenturyTel PPPoE DSL line

wifi4milez
Big Russ, 1918 to 2008. Rest in Peace

join:2004-08-07
New York, NY
·Verizon FIOS
·Sprint Mobile Broa..
·RoadRunner Cable
·BroadVoice

Re: Gotta love it

said by chd176 See Profile :

Even if you have your own SIM (AT&T unactivated) and phone you still have to sign at least a one year agreement to have unlimited M2M
I hope everyone realizes that there is no major carrier in the US that offers cell phone plans without a contract (prepaid doesnt count). In fact, you cant even get 1 year plans from most carriers these days.
--
с новым годом

kapil
The Kapil

join:2000-04-26
Chicago, IL

I know it's AT&T...

...but could they really be this dumb?

Let me get this straight...I can get a free phone from you and be married to you for 2 years. Or, I can use my existing phone, pay you thousands each year and still be tied to you for 2 years?

Hmm...how can I get in on this sweet once-in-a-lifetime deal, Ma Bell?

I wonder if the "2 year contract price" is a mistake since all devices in their shopping cart system have a 2 year contract price. Maybe this plan really is supposed to be without any term agreement? Well, one can dream.
--
»PropertyMaps.com - Real-time, map based, nationwide MLS property search!

n2jtx

join:2001-01-13
Glen Head, NY
·Optimum Online

Stupidity Lives on at AT&T

It is nice to see everything we have come to love about AT&T lives on. I hope that T-Mobile picks up on this and comes up with a competing offer without the contract. It would give them a lot to crow about. In the meantime, any customer who goes for this AT&T "deal" deserves the reaming they get.
--
I support the right to keep and arm bears.

decadent
Premium
join:2002-04-02
Piscataway, NJ


1 edit

Re: Stupidity Lives on at AT&T

T-Mobile already has it and it is much better deal. T-Mobile SIM Activation Kit costs $9.99 and includes 10 minutes starter airtime and there is no contract. Then you can buy 1000 minutes for $100 and they are valid for one year. I have connected my MotoMing a1200e myself without issues and I even set up t-zone. I am a bit lazy to transfer my primary number to them from Verizon, but I will probably do it in a while. You can transfer wireless number to T-Mobile prepaid.

iLive4Apple
Hybrid power
Premium
join:2006-07-13
Helena, AL
·Verizon BroadbandA..
·Charter Pipeline
·AT&T Southeast
·ViaTalk

This isn't new

Just 2 months ago I signed up for AT&T for data to supplement my Nextel family plan. And I just called Customer Service and told the I have an existing 3G phone and I just had to buy a sim card which they waived haha and a 1 year contract.
--
I get 29 MPG in my Toyota Highlander Hybrid!
Surfinusa
Premium
join:2001-02-08

Another Product Delivered : From ATT , from another world!

Yes I have had ATT wireless since it was Cingular back in 2001 I had a phone with them now I have 3 phones with them.

I want to add another line and they want to make me sign a 1 or 2 year contract.

I ask them what is the advantage of a 1 or 2 year contract?

They tell me its my choice.

I asked them " Do I get anything different if I say Sign me up for a 2 year contract just to add another line ?"

They said: "no."

I wondered why would they give you an option if I am bringing my own phone to the table and just adding it the my service plan. 1-2 years Hmmm. Just because I like pain I think I will elect the 2year contract. Because I like getting nothing for nothing.

I have been with this company since 2001 and they want me to sign a contract when I bring my own phone?

Where is the trust and why pull this on me?

I think that is sad. I should be able to add a line if I already have a phone without a contract.

How insulting and a bad business practice if I have been a LOYAL CUSTOMER SINCE : 2001.

I paid Cingular/ATT on time over 100 a month for 7 years and that's the thanks I get?

Of course you could argue if you are already using it the contract shouldn't make a difference to you.

Yes it does to me its wrong. The company isn't giving me anything for free I am bringing my own phone.

I would gladly pay for the sim card that they said I would have to pay just to add my other phone to the plan and pay the activation fee for the additional line.

But put me in a 1 or 2 year contract ???

Crazy.... And I love how they give me an option.

Like I would want to put lemon juice on a paper cut and say yes sign me up for 2 years since you guys aren't doing me any favors.

----------------------------------

I am not that impressed with GSM service, I like the old TDMA.

Never had issues with it.

Lets see since 2001 I paid more than 8,000 $$ to Cingular/ATT and thats the thanks I get.

Sign another contract when you bring your own phone. And oh yeh buy a sim card from us and pay for a connection charge.

Sounds like POTS Delivered from ATT extra fees charges.

morbo
Complete Your Transaction

join:2002-01-22
00000
clubs:

Re: Another Product Delivered : From ATT , from another world!

$8,000 later... are you planning do DO something about it (switch to another provider)? or is it mostly hot air?

mikes60
Stop Socialism Now
Premium
join:2001-07-31
Boynton Beach, FL
·AT&T Southeast

Re: Another Product Delivered : From ATT , from another world!

said by morbo See Profile :

$8,000 later... are you planning do DO something about it (switch to another provider)? or is it mostly hot air?
And he also woiuld like to go back to TDMA ???
--
No good deed goes unpunished.
Surfinusa
Premium
join:2001-02-08

Re: Another Product Delivered : From ATT , from another world!

said by mikes60 See Profile :

said by morbo See Profile :

$8,000 later... are you planning do DO something about it (switch to another provider)? or is it mostly hot air?
And he also woiuld like to go back to TDMA ???
I like the reliability and voice quality for TDMA.

In florida TDMA was the only thing working were I was at the time during the triple hurricanes. I had a Gate phone and a TDMA Phone and both operated on TDMA only.

Everyone who had the new GSM Phones were not able to use the service.

I am not one for all the hype of new feature that allow you to send video and watch it on your phone if I wanted that I would sit down and watch tv.

Besides the ammount of money they charge for me to take advantage of those features doesn't justify the cost, because I work and don't have time to surf the net on my phone. I use my phone for business.

TDMA is a more robust and reliable network and I always heard every word the other person was saying and only once in awhile did it drop the call.

Hard to belive huh?
xsiddalx

join:2005-03-11
Chicago, IL
·AT&T Yahoo

Re: Another Product Delivered : From ATT , from another world!

Why was TDMA better than GSM?

Isn't Verizon a CDMA network?

It sounds like you were lucky. VZ's network had enough redundancy that they worked (unlike the others) in a particular area.

Maybe you are overpaying for a perceived value (TDMA)?

My friends routinely watch video (they apparently have time to surf the net on their phones) on Verizon's "TDMA" network.

Perhaps you meant to say, your phone worked in an instance and others didn't but future performance can't be predicted on past performance as those stock people like to say as they pick your pockets.

said by Surfinusa See Profile :

said by mikes60 See Profile :

said by morbo See Profile :

$8,000 later... are you planning do DO something about it (switch to another provider)? or is it mostly hot air?
And he also woiuld like to go back to TDMA ???
I like the reliability and voice quality for TDMA.

In florida TDMA was the only thing working were I was at the time during the triple hurricanes. I had a Gate phone and a TDMA Phone and both operated on TDMA only.

Everyone who had the new GSM Phones were not able to use the service.

I am not one for all the hype of new feature that allow you to send video and watch it on your phone if I wanted that I would sit down and watch tv.

Besides the ammount of money they charge for me to take advantage of those features doesn't justify the cost, because I work and don't have time to surf the net on my phone. I use my phone for business.

TDMA is a more robust and reliable network and I always heard every word the other person was saying and only once in awhile did it drop the call.

Hard to belive huh?
Surfinusa
Premium
join:2001-02-08


3 edits

Re: Another Product Delivered : From ATT , from another world!

Anything is possible but as I went from tower to tower my TDMA Phones were both working. GSM? Wasn't neither was anyone else I ran into during and after those storms.

Coinsidence? I wouldn't bet on it. TDMA is a more Robust Network. It took weeks for Cingular to repair the GSM Network till then I had service via TDMA. GOOD thing to alot depended on it.

No it doesn't have all the bells but it did the job.

GSM sounds noisy and at times digified.

Snickerdo
Premium
join:2001-02-28
Niagara Falls, ON

Re: Another Product Delivered : From ATT , from another world!

said by Surfinusa See Profile :

Coinsidence? I wouldn't bet on it. TDMA is a more Robust Network. It took weeks for Cingular to repair the GSM Network till then I had service via TDMA. GOOD thing to alot depended on it.
No it doesn't have all the bells but it did the job.
GSM sounds noisy and at times digified.
That's AT&T's fault, not the GSM protocol. The GSM protocol blows IS-136 (aka "TDMA") out of the water in terms of performance and usability. IS-56 and IS-136 were hacks onto the existing AMPS network, while GSM was built from the ground up for use in Europe. If AT&T can't get the protocol to work right, that's their own damn incompetence and not the fault of the protocol.

For the record, GSM up here with Rogers - a former TDMA carrier - actually works better than any other provider in the country. Not only that, but it -sounds- a hell of a lot better than TDMA ever did, too. In fact, Rogers shut down IS-136 and AMPS last year. They only operate GSM and UMTS/HSPA.
--
I swear that I will faithfully and bear true allegiance to Her Majesty Queen Elizabeth the Second, Queen of Canada, Her Heirs and Successors, and that I will faithfully observe the laws of Canada and fulfil my duties as a Canadian citizen.
Surfinusa
Premium
join:2001-02-08

Re: Another Product Delivered : From ATT , from another world!

said by Snickerdo See Profile :

said by Surfinusa See Profile :

Coinsidence? I wouldn't bet on it. TDMA is a more Robust Network. It took weeks for Cingular to repair the GSM Network till then I had service via TDMA. GOOD thing to alot depended on it.
No it doesn't have all the bells but it did the job.
GSM sounds noisy and at times digified.
That's AT&T's fault, not the GSM protocol. The GSM protocol blows IS-136 (aka "TDMA") out of the water in terms of performance and usability. IS-56 and IS-136 were hacks onto the existing AMPS network, while GSM was built from the ground up for use in Europe. If AT&T can't get the protocol to work right, that's their own damn incompetence and not the fault of the protocol.

For the record, GSM up here with Rogers - a former TDMA carrier - actually works better than any other provider in the country. Not only that, but it -sounds- a hell of a lot better than TDMA ever did, too. In fact, Rogers shut down IS-136 and AMPS last year. They only operate GSM and UMTS/HSPA.
That's prob the case ATT hasn't make it work right in this area.

I hope someday it gets fixed though.
xsiddalx

join:2005-03-11
Chicago, IL
·AT&T Yahoo

You are possibly correct. No point getting into a pissing match about technology. TDMA is certainly older than GSM in the US. The cost savings of one versus the other lies in the hands of the providers.

Glad it worked for you. I hear the same arguments about Voip
vs POTS. DirecTv HD vs HD...my attitude, if you think it's worth it, pay the bill or cancel

'Course that don't mean if you feel cornered because it's the only game you town you shouldn't be bitchin and looking for alternatives...we all have breaking points.

said by Surfinusa See Profile :

Anything is possible but as I went from tower to tower my TDMA Phones were both working. GSM? Wasn't neither was anyone else I ran into during and after those storms.

Coinsidence? I wouldn't bet on it. TDMA is a more Robust Network. It took weeks for Cingular to repair the GSM Network till then I had service via TDMA. GOOD thing to alot depended on it.

No it doesn't have all the bells but it did the job.

GSM sounds noisy and at times digified.
Surfinusa
Premium
join:2001-02-08

Re: Another Product Delivered : From ATT , from another world!

said by xsiddalx See Profile :

You are possibly correct. No point getting into a pissing match about technology. TDMA is certainly older than GSM in the US. The cost savings of one versus the other lies in the hands of the providers.

Glad it worked for you. I hear the same arguments about Voip
vs POTS. DirecTv HD vs HD...my attitude, if you think it's worth it, pay the bill or cancel

'Course that don't mean if you feel cornered because it's the only game you town you shouldn't be bitchin and looking for alternatives...we all have breaking points.

said by Surfinusa See Profile :

Anything is possible but as I went from tower to tower my TDMA Phones were both working. GSM? Wasn't neither was anyone else I ran into during and after those storms.

Coinsidence? I wouldn't bet on it. TDMA is a more Robust Network. It took weeks for Cingular to repair the GSM Network till then I had service via TDMA. GOOD thing to alot depended on it.

No it doesn't have all the bells but it did the job.

GSM sounds noisy and at times digified.
Agreed!

mikes60
Stop Socialism Now
Premium
join:2001-07-31
Boynton Beach, FL
·AT&T Southeast


2 edits
said by Surfinusa See Profile :

said by mikes60 See Profile :

said by morbo See Profile :

$8,000 later... are you planning do DO something about it (switch to another provider)? or is it mostly hot air?
And he also woiuld like to go back to TDMA ???
I like the reliability and voice quality for TDMA.

In florida TDMA was the only thing working were I was at the time during the triple hurricanes. I had a Gate phone and a TDMA Phone and both operated on TDMA only.

Everyone who had the new GSM Phones were not able to use the service.


I am not one for all the hype of new feature that allow you to send video and watch it on your phone if I wanted that I would sit down and watch tv.

Besides the ammount of money they charge for me to take advantage of those features doesn't justify the cost, because I work and don't have time to surf the net on my phone. I use my phone for business.

TDMA is a more robust and reliable network and I always heard every word the other person was saying and only once in awhile did it drop the call.

Hard to belive huh?
I have spent over 20 years in the cellular/wireless industy. You may have a personal reason for wanting to keep TDMA, but you'll stand pretty much alone.

When the hurricanes hit South Florida a couple of years ago, all my GSM phones worked fine. And so did most of the TDMA phones.

I have no idea what happened where you lived, but don't blame it on GSM.

Your assessments of the technology and what you wrote abve are just plain wrong.

We were well behind the rest of the world until we finally moved on to GSM.

I can give you an entire lesson, but on GSM,CDMA and TDMA, AMPS, etc. But I just don't have the time.

And please, don't bother to answer this. I don't want to get into another long conversation with you on something you obviously don't hnow about.
--
No good deed goes unpunished.
Surfinusa
Premium
join:2001-02-08

Re: Another Product Delivered : From ATT , from another world!

said by mikes60 See Profile :

I have spent over 20 years in the cellular/wireless industy. You may have a personal reason for wanting to keep TDMA, but you'll stand pretty much alone.

When the hurricanes hit South Florida a couple of years ago, all my GSM phones worked fine. And so did most of the TDMA phones.

I have no idea what happened where you lived, but don't blame it on GSM.

Your assessments of the technology and what you wrote abve are just plain wrong.

We were well behind the rest of the world until we finally moved on to GSM.

I can give you an entire lesson, but on GSM,CDMA and TDMA, AMPS, etc. But I just don't have the time.

And please, don't bother to answer this. I don't want to get into another long conversation with you on something you obviously don't hnow about.
Yeh I remember you now your the guy that loves a good argument and who thinks he knows it all with all your experience.

Thanks for the reminder. Dont engage in my posts if you don't want a reply.

Your in no position to tell me to reply or not to.

Argue with someone else.
Surfinusa
Premium
join:2001-02-08

said by morbo See Profile :

$8,000 later... are you planning do DO something about it (switch to another provider)? or is it mostly hot air?
I am in no way suggesting I was planning on switching providers.

If you read my post. I stated I am unhappy with the current policy to add another line.

As far as Hot air not sure were you are coming from.

morbo
Complete Your Transaction

join:2002-01-22
00000
clubs:

Re: Another Product Delivered : From ATT , from another world!

i guess i should have said, why would you stay with them if you aren't happy with their policy?
xsiddalx

join:2005-03-11
Chicago, IL
·AT&T Yahoo

said by Surfinusa See Profile :

Sounds like POTS Delivered from ATT extra fees charges.
Nah, more like POTS uncontrolled (circa 1945).

POTS don't generally require (aren't allowed) to force contracts for POTS.
Surfinusa
Premium
join:2001-02-08

Re: Another Product Delivered : From ATT , from another world!

said by xsiddalx See Profile :

said by Surfinusa See Profile :

Sounds like POTS Delivered from ATT extra fees charges.
Nah, more like POTS uncontrolled (circa 1945).

POTS don't generally require (aren't allowed) to force contracts for POTS.
Exactly!
lefty1

join:2002-10-25
Clay, NY

What a joke

It's just more smoke and mirrors. Flash as much as possible while giving as little substance as possible. It provides the consumer with zero benefit, and in fact, it's a step backwards.
tenorsaw1

join:2003-07-10
Brooklyn, NY
·ViaTalk

People Are Already Doing This...

Well, when you think about it, this is exactly what people are doing when they buy an iPhone. They sign a 2 year agreement for nothing in return.

When friends come to me with questions about buying an iPhone, I tell them to buy a subsidized phone first, sell it on eBay, and then buy the iPhone.

Nightshade
sic semper tyrannis
Premium
join:2002-05-26
Salem, OR

When I Read This...

I think of the saying by B.T. Barnum, "there's a sucker born every minute."

But seriously, how come why is it that AT&T is so desperate to hold on to these customers, after they hook them in, they have to lock them in a 2 year contract for a device that is no bigger than the first knuckle of your thumb?
--
True Happiness Must Come From Within
xsiddalx

join:2005-03-11
Chicago, IL
·AT&T Yahoo

Re: When I Read This...

said by Nightshade See Profile :

I think of the saying by B.T. Barnum, "there's a sucker born every minute."

But seriously, how come why is it that AT&T is so desperate to hold on to these customers, after they hook them in, they have to lock them in a 2 year contract for a device that is no bigger than the first knuckle of your thumb?
Maybe because most folks can buy a regular old fashioned phone for 5 - 30 bucks and get phone service. Cell phones manufacturers and telcos have convinced us that those devices are worth hundreds (maybe so). To use the cell networks, you can't buy your phone at walmart for 5-30 bucks and just connect it, like the POTS network. The size of the device used to talk is meaningless. People are willing to pay the prices that they do because it is priced appropriately, apparently (contracts included).

How is high pricing indicative of ATT's desperation? It sounds more like their acknowledgment of their customers apathy, disposable income and competitive position.

Perhaps the question should be asked, why is the customer so desperate to use ATTs network that they are willing to sign a 2 year contract?

Sometimes it ain't about the big bad company...sometimes it is the customer.

snipper_cr

join:2002-01-22
Wheaton, IL
clubs:

New?

Well back with Cingular, I brought in a locked GSM Razr V3. They charged me 30 dollars to unlock it (which seems to be a going rate online) and it included a new SIM card. The offer did not include a cell phone better than a Razr so I just stuck with the one I had. As it was pay as you go, there was no contract.. however, i just entered a contract with US Cellular.
--
Serenity Day - June 23rd 2006. You Can't Stop the Signal
xsiddalx

join:2005-03-11
Chicago, IL
·AT&T Yahoo

Re: New?

said by snipper_cr See Profile :

Well back with Cingular, I brought in a locked GSM Razr V3. They charged me 30 dollars to unlock it (which seems to be a going rate online) and it included a new SIM card. The offer did not include a cell phone better than a Razr so I just stuck with the one I had. As it was pay as you go, there was no contract.. however, i just entered a contract with US Cellular.
Maybe there should be no charge for "unlocking" a phone.

Why do phones need to be "locked" in the first place? The landline model works well, but it took the government to create the retail phone market. At one time it was "which color phone would you like...black or black?"

Perhaps, if you bought a phone a WalMart, *shudder*, you could purchase a phone at a much cheaper price, undoubtedly. Imagine Cable TV's selling television sets (the equivalent) coming along with pricing that was tied to their services (bad enough they are charging for rentals of set top boxes)

Your ISPs charging you for contracts (oh, we are doing that too in some markets), a symptom of lack of competition.

As a stockholder, Contracts look great! They make us feel good that there is a 12 month cash flow that we can invest in, given churn!

KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK

Contracts are not about cost recovery...

... they are about preventing competition.

Looks like we're going to need consumer protection laws to end this type of crap.
wavesound

join:2002-01-24
Bolton, MA
·callwithus
·Callcentric
·Gizmo5

Correction

I just noticed that they do offer the plan without a contract. Apparently that was a mistake...

»www.engadgetmobile.com/2008/01/2···ar-plan/
Surfinusa
Premium
join:2001-02-08

Re: Correction

said by wavesound See Profile :

I just noticed that they do offer the plan without a contract. Apparently that was a mistake...

»www.engadgetmobile.com/2008/01/2···ar-plan/
Apparently its true.

I called ATT Mobility and they stated if you add a line or just start up service with them you have options of either bringing your own phone and just paying for the sim card and activation or signing a contract and getting a discounted phone.

I think that is smart thinking.

Thumbs up for ATT! Finally starting to get it right!
Forums » AT&T's New SIM Card Plan


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