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story category Verizon To Offer Subsidized Netbooks
Netbook push will bring increased attention on caps...
(old news - 09:17AM Friday Mar 27 2009)
tags: business · wireless · Verizon Wireless Broadband · Cingular Wireless
While such deals have been common overseas for a while, AT&T just started offering users subsidized netbooks from both Dell and Acer if they're willing to sign two-year wireless broadband contracts. Now reports indicate that Verizon will be joining the trend as well, and is in negotiation with multiple hardware vendors to release $100, subsidized netbooks sometime this year. Such plans are a nice deal for the telcos, who subsidize $200-$300 of the netbook cost, but make more than $1,440 over two years by locking the user into a $60 per month contract. But as carriers start pushing users onto more capable devices, you'll start seeing more users run into the 5GB data cap. AT&T already faces a lawsuit from one netbook owner who was confused by overage charges.

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Forums » Verizon To Offer Subsidized Netbooks
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tubbynet
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something for free...?

said by Karl Bode See Profile :

who subsidize $200-$300 of the netbook cost, but make more than $1,440 over two years by locking the user into a $60 per month contract.
i feel that language is just a littl deceptive. you're not buying the service to get a free netbook, you're buying the service to get (limited) mobile broadband; the netbook is just a value-add.
if i *need* the service, why not get something free out of it?

q.
--
those who forget the past are doomed to repeat it...

Ark

join:2002-06-08
Hudsonville, MI
·AT&T Midwest

Re: something for free...?

If you still have to spend $100 or so up front, why not just buy it yourself. All netbooks have built-in 802.11b/g at least, and for most people, that's all the wireless internet access they'll need. Heck, two months at $60 and you could have just bought the whole netbook up front - »www.amazon.com/Acer-Aspire-AOA11···8&sr=8-1

tubbynet
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Re: something for free...?

said by Ark See Profile :

If you still have to spend $100 or so up front,
the article mentions that the carrier is going to subsidize the cost of the netbook. this language made it sound as if the device would be (nearly) free. obviously i'm not going to spend $100 *extra* to purchase the netbook, but if i *need* the service and i'm going to be getting the service *regardless* of whether or not the netbook is an option and the netbook is *under $50*, why not get it?

again, you don't purchase the service to get a free netbook. you are getting the service because you need mobile connectivity; the netbook is just a little something extra to sweeten the deal.

q.

Ark

join:2002-06-08
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Re: something for free...?

It doesn't say under $50 anywhere, or free anywhere. I see lines like "This will be a big hit for the back-to-school crowd," says Entner. "You have to buy a computer, and here's one for $100." though. And that statement seems to ring true for most people who will end up buying these. They will buy them because they appear cheap, not because they want to use cellular internet access for $60/month. People will be suckered into them for various reasons, and MOST people will be better off just paying full cost up front. If you DO need cellular internet and a netbook, great, let them pick up half the cost of the netbook, but I'm pretty sure MOST people will only want a cheap basic computer for web and email with 802.11b/g being all the internet access they'd ever use anyway.

wifi4milez
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Re: something for free...?

said by Ark See Profile :

People will be suckered into them for various reasons, and MOST people will be better off just paying full cost up front.
I disagree. Assuming you need a new laptop with mobile data, why on earth would you not do this?? The alternative is purchasing the netbook at full retail (lets call it $400), then buying a data card for $100, THEN paying $60 a month on top of it for your plan. I am not really sure how you consider saving a few hundred dollars being "suckered", however to each his own I guess....
--
When you can't make them see the light, make them feel the heat.
-Ronald Reagan-


Ark

join:2002-06-08
Hudsonville, MI
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Re: something for free...?

said by wifi4milez See Profile :

I disagree. Assuming you need a new laptop with mobile data, why on earth would you not do this?? The alternative is purchasing the netbook at full retail (lets call it $400), then buying a data card for $100, THEN paying $60 a month on top of it for your plan. I am not really sure how you consider saving a few hundred dollars being "suckered", however to each his own I guess....
You completely missed my point. Most people don't need cellular internet access. Assume for this conversation that we are only talking about people who don't need or want it. That is a large number of the people who might end up buying these at a discount. And no, full retail is not $400. Even Best Buy has them for $239.99. We're talking about people who WILL look at this as "saving" $140, without thinking about the repercussions of a data plan they don't need.

tubbynet
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Re: something for free...?

said by Ark See Profile :

That is a large number of the people who might end up buying these at a discount.
by your estimation. i would guess that if people weren't lead to believe that this is a "notebook" pc and they were purchasing this *at a verizon wireless agent/store/dealer* location, then that might be true.

You completely missed my point. Most people don't need cellular internet access. Assume for this conversation that we are only talking about people who don't need or want it.
lot of assumptions. maybe there were a lot of people *considering* getting such service, and the netbook is the icing on the cake.

And no, full retail is not $400. Even Best Buy has them for $239.99. We're talking about people who WILL look at this as "saving" $140, without thinking about the repercussions of a data plan they don't need.
look, i'm all for consumer protections and am in no way a corporate shill, but this *is* a classic case of "if the people are too stupid to do the math, they deserve it". given that the make/model of the netbook will be known at the time of purchase and that the *base* price of the mobile broadband service is $60 (that is *without* any of the taxes/fees/unfees/below the line adjustments/fisa recovery adjustment/preventing terrorism adjustment/because we feel like it adjustment/etc), it would be really easy to borrow the calculator from the agent to do some math (or use the one on your cell phone). i have no sympathy for people who aren't willing to do their research in cases like this.

q.
iansltx

join:2007-02-19
Golden, CO

Re: something for free...?

FWIW taxes on mobile broadband are WAY lower than those on regular cell service.

tubbynet
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Re: something for free...?

said by iansltx See Profile :

FWIW taxes on mobile broadband are WAY lower than those on regular cell service.
good to know and glad to see that similar features are regulated and taxed similarly (i.e. the taxes on my cox hsi were very reasonable compared to my digital voice tv; as mobile bb is a data product, its nice to see it regulated as such).

q.

wifi4milez
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said by Ark See Profile :

You completely missed my point. Most people don't need cellular internet access. Assume for this conversation that we are only talking about people who don't need or want it.
I would argue that those people are not going to sign a 2 year data plan then. If you arent in the market for a data card, you arent going to be shopping for a netbook at a Verizon retail store to begin with. This deal is meant for people who come into the store looking to purchase a wireless data card, NOT someone who casually wants a new netbook. Thats the difference here, two different markets that will have very little overlap.

said by Ark See Profile :

And no, full retail is not $400. Even Best Buy has them for $239.99.
Nobody buys the Linux versions of netbooks (the $240 one you referenced), they have been returned in droves due to confusion over what they are. In fact, some manufactures have stopped producing them due to upwards of 75% returns on the devices. A new, XP netbook will run you $350 and up. You can get an older model for less online, but we are talking about new devices here.
--
When you can't make them see the light, make them feel the heat.
-Ronald Reagan-

jp10558
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Re: something for free...?

said by wifi4milez See Profile :

said by Ark See Profile :

Nobody buys the Linux versions of netbooks (the $240 one you referenced), they have been returned in droves due to confusion over what they are. In fact, some manufactures have stopped producing them due to upwards of 75% returns on the devices. A new, XP netbook will run you $350 and up. You can get an older model for less online, but we are talking about new devices here.
OT, but really, I don't get the point of the Windows based netbooks. How is $400-$600 an attractive price point? Heck, I'm not sure how $350 at the bottom end is an attractive price point. I can often get a full laptop (on a semi regular sale) for $400, with beter specs.
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wifi4milez
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Re: something for free...?

said by jp10558 See Profile :

said by wifi4milez See Profile :

said by Ark See Profile :

Nobody buys the Linux versions of netbooks (the $240 one you referenced), they have been returned in droves due to confusion over what they are. In fact, some manufactures have stopped producing them due to upwards of 75% returns on the devices. A new, XP netbook will run you $350 and up. You can get an older model for less online, but we are talking about new devices here.
OT, but really, I don't get the point of the Windows based netbooks. How is $400-$600 an attractive price point? Heck, I'm not sure how $350 at the bottom end is an attractive price point. I can often get a full laptop (on a semi regular sale) for $400, with beter specs.
You raise a good point, which is why the 'sweet spot' for netbooks is just around the $400 mark. As for XP, the reasons are obvious. The overwhelming majority of software is made to work with XP. Any programs you might have (Outlook, Word, etc.) will all work if you buy an XP device. Dont get me wrong, I have a number of Linux machines at home myself but they simply arent mainstream enough for 99% of users. People simply want all their 'stuff' to work when they buy a new computer, and with Linux that just not the case.
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pfak
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Re: something for free...?

Not to mention, the Acer Linux distribution that is included on their netbooks is worthless.

I bought one of the Acer Aspire One's for my girlfriend for Christmas, the first thing she did was install Windows XP on it.
--
Xenophase - British Columbia's premier online gaming community.

Ark

join:2002-06-08
Hudsonville, MI
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$400+ is not an attractive price point. You could get a low-end 14" laptop for that.

I bought mine for $240 from Amazon with 1.6GHz Atom, 8GB SSD, 1GB RAM, and Windows XP Home, for $240, no tax, free shipping. That was about the most an ultra-portable 9" 2lb device should cost.

Maybe it's just a recent thing with the Windows XP Home Edition ULCPC program, but I think Acer can pay a lot less for ULCPC licenses than regular XP Home licenses, even though it is the same product. Microsoft just limits the computers OEMs can put that on, such as 1GB max ram and stuff. Maybe a few months ago these weren't available with Windows XP at $240 and the cheap ones did only have Linux. That seems to have changed if it was the case, since you can find plenty of sub-$300 netbooks with XP Home now.

Ark

join:2002-06-08
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The ones I've linked to are all Windows XP ones. I personally bought the one from Amazon, since it was $240 with no tax and free shipping. The same exact one, with XP, is at Best Buy, but not at my local store. I'd have to order it online and pay 6% MI sales tax and $12.99 shipping.

And I'd agree that people who are stupid and buy these on 2-year contracts, if they don't want the data plan, are going to get what they deserve. The quote I saw about "back to school" made it sound like they are going to put them for $100 at a retail store like Best Buy (who does sell mobile service plans as an agent at least). I would agree that people looking for a back-to-school computer aren't going to be looking at a Verizon store, but if this $100 thing is at Best Buy, they may pick it up.

Tzale
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said by Ark See Profile :

said by wifi4milez See Profile :

I disagree. Assuming you need a new laptop with mobile data, why on earth would you not do this?? The alternative is purchasing the netbook at full retail (lets call it $400), then buying a data card for $100, THEN paying $60 a month on top of it for your plan. I am not really sure how you consider saving a few hundred dollars being "suckered", however to each his own I guess....
You completely missed my point. Most people don't need cellular internet access. Assume for this conversation that we are only talking about people who don't need or want it. That is a large number of the people who might end up buying these at a discount. And no, full retail is not $400. Even Best Buy has them for $239.99. We're talking about people who WILL look at this as "saving" $140, without thinking about the repercussions of a data plan they don't need.
These people need to learn to stop being idiots.... Why is it that it is now OK to criticize companies for offering marketing incentives? If a consumer is stupid enough to spend $1500 to save $150, then they are idiots...
--
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baineschile
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Subsidized?

Karls favorite word of the day....apparently.

ninjatutle
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Re: Subsidized?

I love subsidizing

I wish my netbook would have been subsidized I am using a netbook + ATT 3G USB card now.

battleop

join:2005-09-28
00000

So what's the big deal?

If you get a card by it's self for $60/mo that's $1,440 over 2 years. Then you add a $100 to get a $300-400 netbook. If you were going to get the card to begin with why is this a bad deal?

The only way I can see it as a bad deal would be if the Verizon card was built into the netbook and you could not use it on any other machine.

I know there are other ways to do this but I don't think tethering is an equal comparison.

wifi4milez
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Re: So what's the big deal?

said by battleop See Profile :

If you get a card by it's self for $60/mo that's $1,440 over 2 years. Then you add a $100 to get a $300-400 netbook. If you were going to get the card to begin with why is this a bad deal?
Its not a bad deal, you just explained it perfectly. This isnt meant to be marketed to people who are simply looking for a new computer, its meant for people who are already on the market for a laptop data card. You get to the store and instead of paying $100 to $200 for a card itself, you get a brand new netbook for the same price. Its a win/win for someone who has a need for a data card, of which there are millions sold each year.
--
When you can't make them see the light, make them feel the heat.
-Ronald Reagan-


battleop

join:2005-09-28
00000

Re: So what's the big deal?

I've got a Verizon and Sprint card that I carry around for work. I am now shopping for a netbook to supplement my laptop that weighs 10.5 lbs. This would have been a great deal for me.

skyward

@sprintlink.net
It is built in card.

PGHammer

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Re: So what's the big deal?

Are you sure?

VZW gives the cards away if you sign up for a data plan (that's today), as they are USB (not ExpressCard or PC Card Type II/III), so the current generation of connect-cards will plug into current netbooks without issues, so why would VZW reinvent the wheel?

jayco437
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Lincoln, NE
·Windstream

Great...

Great, now they want to bend you over the barrel for cell phones and laptops. I much prefer paying for hardware up front over the contracts.

Like I need a $200 Dell subsidized, or a $100 aircard to go with it.
--
If you have a gun, you can rob a bank, but if you have a bank, you can rob everyone!
Forums » Verizon To Offer Subsidized Netbooks


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