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Sprint CEO: Exclusive Contracts Important for Wireless

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Agree...

JeffdaBeat

Sep 17, 2009, 2:28 PM
I think exclusive contracts give something for each carrier wants, but in my opinion, it does help consumers. It forces innovation from the manufacturers. Samsung, LG, Motorola, and other companies make handsets that the US specifically request. If I want my carrier to have something like the Blackberry Bold only I want it to do this instead of that or this on top of that, then I go to RIM and get them to make it work.

Still, I don't think it should be an indefinite thing. At some point, I think manufacturers should have the ability to venture off to other carriers with the same design or at least slightly modified...

I've only gotten into wireless within the past three years, but I feel like (broken record) that certain phones like t...
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Azeron

Sep 17, 2009, 2:36 PM
I thought the Motorola Timeport 270c was a "revolutionary" device. It had a bluetooth module and bluetooth headset as optional accessories. Man, I loved that phone. Best Motorola I ever owned. WAY better than the V710 and Silver Q I later purchased.
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asLeepLessman

Sep 18, 2009, 1:50 PM
Your a sick man. The Timeport 270c? Wow!... I mean, Wow! LMAO! That was "revolutionary" wasnt it? LOL! We have come such a long way.

https://www.phonescoop.com/phones/phone.php?p=42 »

I found this extra funny because I have a 270c sitting in a drawer near me as I type. Lol!
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paxtonc

Sep 17, 2009, 6:21 PM
Bundling? It makes as much sense today as it did when your choice of home phone was either a rotary desk model or a rotary wall mount. It is not for nothing that the FTC has awoken from it's 25 year slumber to investigate this restraint of trade practice.

Innovation? Then why do so many carrier-subsidized handsets have functionality stripped out?

I've said it before - buying your handset from a carrier makes as much sense as buying your car from a gas station. What do you think the mpg on cars would be if that were the case?
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Azeron

Sep 17, 2009, 7:06 PM
What if your gas station discounted your car 60% as long as you agreed to buy at least X gallons of gas per month from them? That's the analogy. Carriers subsidize the cost of the phones and that is their excuse for locking consumers into contracts and placing their interface on the phones. If consumers were willing to pay full retail then maybe the model could be changed. Personally, I would love to see the current model overturned.
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ruler_goddess

Sep 18, 2009, 10:15 AM
I think this will put much more competition with carriers. And I think this is a great idea if you were able to get any phone on any carrier people like Verizon wireless would not be able to screw you over with their outragous prices because they are the "only ones" who have the phone you want, Or the only phone that will work with this or that OS system. And maybe they will make phones avilible in more colors! That would be cool.
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paxtonc

Sep 18, 2009, 12:03 PM
Of course. -60%, -100% on the handset, and then +10%, +30%, etc. on the service. , -20% on the handset. That's the definition of bundling here.

Bundling only benefits consumers to the the extent that
1. there are economies of scope between handset manufacturers and carriers
and
2. carriers have little market power

along with

3. consumer side cost to create a bundle exceeds that of a handset+carrier combo.

My assessment:
1. no economies of scope
2. HHI>2100 but scale economies make this potentially ambiguous. Empirically, US cellular bills are second only to Spain in international comparisons (if my memory serves), which suggests that market power is significant.
3. It takes all of 5 minutes to set up a new phone on a ...
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