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The Phone You're Paying For But Not Getting

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Top message:  It's amazing how hard it is to get people to understand this by Globhead   Mar 20, 2013, 11:14 AM

Replying to:  Re: Sadly, most Americans are economically ignorant by Joshiwa   Mar 21, 2013, 10:25 AM

Re: Sadly, most Americans are economically ignorant

by Overmann    Mar 24, 2013, 11:00 AM

It's all part of the credit economy, again, partly due to subsidies. That $249 smartphone you got on a 2 year plan? Costs the store that sold it to you $550. And if the great new device turns out to be a flop? That's a lot of money lost. If consumers and companies both stopped trying to subsidize and lock phones, and simply have phones and services sold at profit and not at subsidy, we may see phone retail and wholesale prices drop a little and carrier service prices drop some as well. Phone carriers could also stop running on borrowed money if they no longer have to foot the bill on customizing and buying all the phones for their network. We've seen technology crop up recently where a phone radio tuner can switch frequencies totally on software now, potentially making a phone compatible with any network of the same type by changing a setting.

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