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T-Mobile USA Raises Price of iPhone 5 to $149

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Top message:  Man! these no contract plans are awesome!!!!!!!! by Simply_Eric   May 14, 2013, 11:24 AM

Replying to:  Sarcasm? by Tofuchong   May 14, 2013, 11:38 AM

Re: Sarcasm?

by T Bone    May 14, 2013, 12:56 PM

That entire discussion of 'savings' is based on the false assumption that there is a mark up in the monthly service costs, a specific line item on your bill that says 'cover cost of subsidy'....and that not having a subsidy would eliminate that line item,,,

That just ain't so....there is no 'cover cost of subsidy' line item anywhere on your bill.....eliminate the subsidy and monthly service costs remain the same, because the monthly service costs are based on the cost of providing the service NOT the cost of the phone that is being subsidized.

Remove the subsidy and nothing will change...except that many people will no longer be able to afford expensive phones.

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