Verizon Challenges FCC's Net Neutrality Push
Top message: Sorry, Verizon. by ELawson87
Replying to: Re: Sorry, Verizon. by Slammer
Re: Sorry, Verizon.
The subsidy is the biggest cost a carrier is hit with. The reason for this is the manufactures make incredible amount of money selling their devices to the carrier who then sell the devices at a loss.
Think about it. it costs apple about 120 bucks to make a 700 dollar iphone which they sell to the carrier at almost market value. If the iPhone and many smartphones were not given subsidy then there prices would probably be more around the price of an iPod touch.
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