AT&T, Google, Sprint, T-Mobile and Verizon Defend ETFs
The last sentence, is a problem with me.
I understand the carriers point. But only to a certain extent. In the 23 years I have owned cellphones, 98 percent of my issues have not been with devices. It has almost always been with the service after the sale. Generally, this has only occurred after the 30 day trial. By then it is too late. I believe the balance of compromise should be the elimination of subsidized devices. As expected, the carriers, will fight this because of the power it gives to consumers to extract themselves at anytime a carrier disproportionates itself from good customer service and/or billing issues.
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I wish! But then people would bitch about buying a $200 basic phone! But thats what they cost. No subsidy means if you want an Android OS device be prepared to pay $500+. Thats about what the carriers have to pay the manufactures to get those phones. They pay about 75%-85% of what they show as the MSRP.
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I agree. Lets go to an unsubsidized model.
Unfortunatly not going to happen; quality of phone would go down even more, and customer couldn't afford them.
Remember history, phones were subsidized to get the mass market on board with them. Now that that is the case, it is possible ppl would buy to keep up with mobile communications (they're hooked). But again it would be a tax on the poor, and leave the have-nots behind. Its a sad situation, same thing is happening with DSL that poor kids won't be as educated and have the same opportunities as richer kids (middle income with access to internet).
As a nice side-effect, used phones would be worth more and be recycled/re-used more often. Anyone want a V3 RAZR for a steal at $50?
Unfortunatly not going to happen; quality of phone would go down even more, and customer couldn't afford them.
Remember history, phones were subsidized to get the mass market on board with them. Now that that is the case, it is possible ppl would buy to keep up with mobile communications (they're hooked). But again it would be a tax on the poor, and leave the have-nots behind. Its a sad situation, same thing is happening with DSL that poor kids won't be as educated and have the same opportunities as richer kids (middle income with access to internet).
As a nice side-effect, used phones would be worth more and be recycled/re-used more often. Anyone want a V3 RAZR for a steal at $50?
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T-mobile has already started this process. The "Even more plus" Rate plans. You can even finance your full cost phone for 20 months. No contracts same service and the rate plans are even less expensive that contracted ones. They have had a lot of customers switch over to it since they've been offering it since late October.
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That's a rip-off! You end up paying more then what it's worth up fornt. Like Rent-to-own places!
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Let's say you're picking up a MyTouch 3G. T-Mobile has a $350 subsidy for this phone. If you plan to get unlimited talk, text and web, Even More Plus costs $20 less per month than Even More. You'll pay back that subsidy in about 17 1/2 months, after which you're paying T-Mobile $20 extra for nothing.
Middle of the page.
http://www.pcmag.com/article2/0,2817,2354721,00.asp »
Middle of the page.
http://www.pcmag.com/article2/0,2817,2354721,00.asp »
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As the article states, it's a good thing. Especially if you are comparing to the other carriers. Plus if you want to get an expensive phone but finance it you can. Us Americans love getting into debt! Its just something T-mobile is doing to be proactive towards customers that don't want to have contracts and don't want to pay a lot per month.
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I admit I don't exactly how it T-Mobile plan works. But, I think it is more to cover themselves than to allow customers to be without contract. If you don't sign up for a contract, but you do finance a phone, you'll end up in the same place as if you had a prorated ETF. If you cancel, they aren't going to just let you go. You have to pay off the phone- which all the ETF really is anyway. They can say you don't have a contract and all of that, which makes people happy- but it works the same.
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It isn't a rip off. The customer gets the FREEDOM to leave whenever they wish. I'll pay little extra for that and obviously so will some T-Mobile customers.
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Your math is bad. Lets look at it this way. Unlimited Talk, Text, and Web with Even More is $99.99 per month. Times 24 months, that comes to $2399.76. Add in the $49.99 for the phone (which was a promo, BTW), and you get $2449.75 total cost of ownership.
Now, let's look at Even More Plus. $79.99 per month for the same plane. Even though there is no contract, we'll say the customer keeps the service for 24 months. That comes to $1919.76. Add in the $399.99 and you get 2319.75. The difference is $130 in the favor of the no contract option. So it is a far, far cry from "rent-to-own".
Now, let's look at Even More Plus. $79.99 per month for the same plane. Even though there is no contract, we'll say the customer keeps the service for 24 months. That comes to $1919.76. Add in the $399.99 and you get 2319.75. The difference is $130 in the favor of the no contract option. So it is a far, far cry from "rent-to-own".
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Thank you for clarifying that. It's annoying when people read an article or overhear conversation and assume that something is a rip off when it's the exact opposite. People have been switching to these plans and saving a lot of money. Also, a few facts remain unstated.
1. Contracted plans have "req" features for the life of the contract. That means if you have a two year contract and you decide you don't want to have that smartphone web anymore. You can easily switch to a basic phone (if you aren't extending the contract for a discounted handset) but you will still be paying for smartphone web. Which limits your flexibility.
2. You save $20 a month for a phone and you aren't locked into a contract... That's definately worth it. You ca...
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1. Contracted plans have "req" features for the life of the contract. That means if you have a two year contract and you decide you don't want to have that smartphone web anymore. You can easily switch to a basic phone (if you aren't extending the contract for a discounted handset) but you will still be paying for smartphone web. Which limits your flexibility.
2. You save $20 a month for a phone and you aren't locked into a contract... That's definately worth it. You ca...
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Good point about the used phones. I grew up in a house with a cordless phone that worked perfectly for many years. Didn't have to swap it out every 1 or 2 years for something better. I think people would perhaps pay more, but then hang on to their cellphones a whole lot longer. Could be tough on the manufacterers... unless they keep the battery lives as terrible as they are now.
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The problem with that concept as I see it is:
1) handset prices would be higher than consumers would be willing to pay so the industry would slow development of new products.
2) Handsets would become a much lower quality like Tracfone and Virgin Mobile
3) Carriers would not be able to afford the payroll so customer service would suffer or become like Tracfone.
4) With no way to guarantee or project revenues carriers would be forced to rework rates.
If we went to this standard the entire industry would become like Tracfone If you have never had to help a Tracfone customer then you don't know what I am talking about. Offshore support reps who cannot help you if your problem is not on a list of problems on their screen, half ho...
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1) handset prices would be higher than consumers would be willing to pay so the industry would slow development of new products.
2) Handsets would become a much lower quality like Tracfone and Virgin Mobile
3) Carriers would not be able to afford the payroll so customer service would suffer or become like Tracfone.
4) With no way to guarantee or project revenues carriers would be forced to rework rates.
If we went to this standard the entire industry would become like Tracfone If you have never had to help a Tracfone customer then you don't know what I am talking about. Offshore support reps who cannot help you if your problem is not on a list of problems on their screen, half ho...
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Most reps would agree with you. Since I do not work for a carrier, my experience comes from being a consumer. True, an initial slow down in handset sales would likely happen. But the markup of handsets from factory to carrier would start to decrease as manufactures realize they need to move product. The end result would be a happy medium for both carrier and consumer. This would result in continual sales. The wireless industry is no different than any other. Computers, TVs stereos etc are all based on the premise of paying full price. If you can't afford a high end computer, you purchase a cheaper one. It should be the same for phones. I contend that this is the problem of why the current path of practice of the wireless industry is fragment...
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Customer service would not be like Trac Phone because the carriers would compete against one another for customers. Right now AT&T and VZW only compete with one another.
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Why do people keep resorting to the "eliminate choice" card?
When you say eliminate subsidies you are eliminating choice. There are no subsidy options now for the same rates with most carriers and LOWER rates with others.
When you say eliminate subsidies you are eliminating choice. There are no subsidy options now for the same rates with most carriers and LOWER rates with others.
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Yes, the carriers like things just the way they are as do many consumers. I hope the FCC bans contracts so that all the carriers can act in one accord and eliminate equipment subsidies.
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So do I, that way when customers complain about having to pay between $300-$700 for a phone, we can tell them: "well, this is what YOU wanted"....
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T-mobile offers an month to month service with phones at full price. You can opt to spread the payments over 20 months and if you want to leave you just have to pay off the phone. I think customers are fairly open to it, though there are the few people who still want the "free" phone. Its actually become a rare occurance for me to hear people ask for the "free" phone and I like it.
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This forum is closed.
