FCC Not Satisfied with Verizon's ETF Explanation
The *ACTUAL STORY* behind Verizon's higher ETF's.... For those who think you can just pay full price
The doubling of Verizon Wireless's ETF is due to Verizon Wireless doubling their device subsidies. The hardware cost of the Motorola Droid, for example, is some $400.00 HIGHER than the cost with contract. Verizon Wireless is doing this in order to make up for their lack of compelling smartphones and instead position smartphones that would originally have cost much more against lower-priced smartphones on other carriers.
Back in the day, handsets were only subsidized by roughly $150.00 / $175.00 , but in order to compete with AT&T, Verizon Wireless is subsidizing handsets upwards of $300.00 in order to remain competitive.
If you were to purchase a handset at full price on Verizon's network such as the Motorola Droid, you would effectiv...
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Back in the day, handsets were only subsidized by roughly $150.00 / $175.00 , but in order to compete with AT&T, Verizon Wireless is subsidizing handsets upwards of $300.00 in order to remain competitive.
If you were to purchase a handset at full price on Verizon's network such as the Motorola Droid, you would effectiv...
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it DOES prorate. 10 a month. Verizon was one of the first companies to start Prorating their ETF.
And try buying a new Bold without a contract (paying retail) it's not cheap either.
And try buying a new Bold without a contract (paying retail) it's not cheap either.
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Menno said:
it DOES prorate. 10 a month. Verizon was one of the first companies to start Prorating their ETF.
And try buying a new Bold without a contract (paying retail) it's not cheap either.
True, but I don't have to buy a Bold or an AT&T branded unlocked Bold to work on their system, savings can be significant from what AT&T charges in their corporate stores and online.
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I absolutely disagree with your "theory" on the compelling handsets. I have owned and used many an iPhone and I owned AT&T stores. Verizon has the droid and must compete with one phone on AT&T for price, the iPhone.
If you had any sense of history you would know that the iPhone is ALSO highly subsidized. Just ask of the dealers who know carry the iPhone how much profit is made on that sale.
Oh wait, they still haven't received their pre-thanksgiving shipments. They still know the cost and commission.
If you had any sense of history you would know that the iPhone is ALSO highly subsidized. Just ask of the dealers who know carry the iPhone how much profit is made on that sale.
Oh wait, they still haven't received their pre-thanksgiving shipments. They still know the cost and commission.
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If you knew anything about the wireless industry which you so claim to be 'involved' in you'd know that the iPhone's subsidization model is different than that of most other phones with a unique revenue sharing agreement in place. The Droid, BB, etc. do not have that.
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So are Blackberries. The iPhone model was completely changed after the 1st year when subsidies came into play.
Do some research.
Do some research.
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That's because AT&T fought to be able to bring the price down on the iphone. The full cost on them is $500 $600 and $700 and yet AT&T hasn't raised any ETFs. with that much in subsidizing for almost 2 years, why haven't they done the higher ETF like VZW? VZW just gets a high end phone and they HAVE to crank everything up? No. I don't think so.
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If AT&T is subsidizing $300 per iphone they are late. But AT&T isn't doing BOGO iphones. Please... I'm not going to give you a $600 phone so you can cancel and flip it on Ebay for a $300 profit.
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AT&T didn't have this issue with the first iPhone because of the structure of the deal. Sell them for cost and pay royalties. Nice and easy.
It has been well publicized that the iPhone subsidy is substantial.
All carriers will follow suit. It is frankly a smart business decision due to the loop-hole finding people out there.
It has been well publicized that the iPhone subsidy is substantial.
All carriers will follow suit. It is frankly a smart business decision due to the loop-hole finding people out there.
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I don't believe this is true. I see it going the other way, which has already begun.
What if the ETF was the difference in the amount that was subsidized of the phone you purchased?
doing this would rid the loop-hole you discribed above.
We see this structure in place in Europe and at T-Mobile USA.
what makes it so hard for this to be adopted by other carriers in the US?
What if the ETF was the difference in the amount that was subsidized of the phone you purchased?
doing this would rid the loop-hole you discribed above.
We see this structure in place in Europe and at T-Mobile USA.
what makes it so hard for this to be adopted by other carriers in the US?
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Actually it's $400 and here's the problem with BOGO on an iphone.....2 problems actually:
1. That would be one hell of an expensive loss and, as you say, people could easily cancel and flip on ebay and make on nice profit
2. As much as ATT subsidizes the iphone, it is STILL an Apple product and Apple price controls everything they have. I honestly doubt Steve Jobbs is going to give anyone free iphones anytime soon.
1. That would be one hell of an expensive loss and, as you say, people could easily cancel and flip on ebay and make on nice profit
2. As much as ATT subsidizes the iphone, it is STILL an Apple product and Apple price controls everything they have. I honestly doubt Steve Jobbs is going to give anyone free iphones anytime soon.
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Early 2010? I'll mark those words. I highly doubt that will happen. I'll be kind and wait till the end of the 1st quarter to see how accurate your prediction is.
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So you want early, early 2010?
AT&T will do it within days of Verizon Wireless' final "verdict" of their increase by the FCC.
AT&T will do it within days of Verizon Wireless' final "verdict" of their increase by the FCC.
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Who cares.... The ETF is what it should be. If you don't want to buy the phone because of the ETF you probably were not going to be on the Verizon Wireless network anyways. It shouldn't matter unless you break your contractual duty! Stop crying about little things and start worrying about the future of this country!
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Wow. So, like, you're saying that you have to pay a lot more for The Droid if you pay for it outright instead of getting a contract? Well, that's it. I'm taking the ATT Coyote's advice and going to ATT where all the phones fart rainbows and are damn near free without a contract. This guy is a genius.
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bluecoyote said:...
The doubling of Verizon Wireless's ETF is due to Verizon Wireless doubling their device subsidies. The hardware cost of the Motorola Droid, for example, is some $400.00 HIGHER than the cost with contract. Verizon Wireless is doing this in order to make up for their lack of compelling smartphones and instead position smartphones that would originally have cost much more against lower-priced smartphones on other carriers.
Back in the day, handsets were only subsidized by roughly $150.00 / $175.00 , but in order to compete with AT&T, Verizon Wireless is subsidizing handsets upwards of $300.00 in order to remain competitive.
If you were to purchase a handset at full price on Verizon's network such as t
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