Techs & Trends
Cellphone contract / warranty question
How come wireless companies lock customers with two year contract but only offer warranty on the phone for 1 year? I understand its manufacturer's warranty - they should be only allowed to offer a 1 year contract.
Two year contracts offer a win-win situation for these providers.
Two year contracts offer a win-win situation for these providers.
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The warranty is from the manufacturer, and has nothing to do with the service provider.
As for the contract length, I know that at least Cingular and T-Mobile offer 1-year contracts with a higher price on the phone. It's not heavily advertised, but you can ask for it and get a 1-year contract (the 1-year price is on the price tags for all of the phones in the stores so it's not hidden or anything). I'd imagine that other carriers have that option as well.
The problem is, when you say "You can get the RAZR for $99.99 before a $50 rebate with a 2-year contract or you can get the RAZR for $199.99 and not get a rebate for a 1-year contract" none of them take the 1-year contract. They'll either take the 2-year or just not sign up.
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As for the contract length, I know that at least Cingular and T-Mobile offer 1-year contracts with a higher price on the phone. It's not heavily advertised, but you can ask for it and get a 1-year contract (the 1-year price is on the price tags for all of the phones in the stores so it's not hidden or anything). I'd imagine that other carriers have that option as well.
The problem is, when you say "You can get the RAZR for $99.99 before a $50 rebate with a 2-year contract or you can get the RAZR for $199.99 and not get a rebate for a 1-year contract" none of them take the 1-year contract. They'll either take the 2-year or just not sign up.
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Did you think before you wrote this, what does the length of your cell phone contract have to do with your phone warranty which comes form the cell phone manufacturer?
Also cell phone companies do offer 1 year contracts, but it costs more for people to get them (price of phone and activation fees, etc.)
Also cell phone companies do offer 1 year contracts, but it costs more for people to get them (price of phone and activation fees, etc.)
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Most of the cellular websites dont even give an option of choosing 1 year contract option. They don't even advertise that 1 year option exists (unless you call up customer support).
My quesion stemmed from the fact that why should be one under contract if the phone happens to die after 13 months. The provider made one go for 24 months contract but support the phone only for 12 months (I understand this is manufacturer's warranty but they still support it). After that if the phone goes bad, what options do they give? Yes, buy another phone at full price!
My quesion stemmed from the fact that why should be one under contract if the phone happens to die after 13 months. The provider made one go for 24 months contract but support the phone only for 12 months (I understand this is manufacturer's warranty but they still support it). After that if the phone goes bad, what options do they give? Yes, buy another phone at full price!
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Again, what does that have to do with the cell phone company, they dont make the phone, they provide you service on the phone you buy, you of course have the option to pay for the monthly insurance, in this case you will most likely get a replacment phone if your phone is broken.
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I guess it's hard to understand that the phone and the contract have very little to do with each other. It would solve this perception issue if they allowed custies to buy their phones anywhere, and then find the service they wanted and activated at that time, but that isn't how wireless is set up.
So understand, that even though the same person sold you both the phone and the service, at the same time and that it was on one transaction slip, really it was two separate transactions that have very little to do with each other.
So understand, that even though the same person sold you both the phone and the service, at the same time and that it was on one transaction slip, really it was two separate transactions that have very little to do with each other.
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Okay, keep in mind a few things about your wireless carrier. They WANT YOUR BUSINESS!! Mine does. That's why they will offer to support the 1 year warranty offered by the manufacturer, with a few stipulations, such as:
1: you probably have to buy the phone from the company, not the manufacturer or another source
2:warranty does not cover damage
3: you will sign a contract or you will pay much more for your phone, so that the company has a hope of recovering some of that money they just laid out to bring you on board. That's capitalism, baby! And it is a "win-win" like you said: They win by guaranteeing your business (or you pay your Early Term Fee), you win by not paying so much out of pocket for your phone (and remember, in Asia, ...
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1: you probably have to buy the phone from the company, not the manufacturer or another source
2:warranty does not cover damage
3: you will sign a contract or you will pay much more for your phone, so that the company has a hope of recovering some of that money they just laid out to bring you on board. That's capitalism, baby! And it is a "win-win" like you said: They win by guaranteeing your business (or you pay your Early Term Fee), you win by not paying so much out of pocket for your phone (and remember, in Asia, ...
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Now if we could only get the customer to understand this concept then the world be a better place. 😁
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Cingular Wireless does have a 1-year contract. The phone will cost $50 more than the two-year agreement price.
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We sometimes charge more than a $50 increase. It's generally somewhere between $50-$100 more and you aren't eligible for any rebates with a 1 year contract.
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Do you offer a one year on upgrades? I cell cingular as well and we make next to nothing on 1 year upgrades. I usually only offer one year contracts with customer owned equipment if they persist.
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Different departments sell different contracts, for business we only sell two contracts, but for consumer we have one and two year agreements. Warranties are actually very good for the customer although only one year, the warranty is a manufacturer warranty for year against any defects in the phones. so you should actually have to go through the manufacturer instead of the wireless carrier, but since the wireless carriers knows that can be more difficult, they offer the replacement and cover the cost of the replacement phone, in return they get there phone back and it gets refurb to give it to someone else who has a warranty issue. for extended warranties it depends on what kind, if your getting an extended warranty for manufacture defect...
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I've never offered it, but I'm sure we're in the same boat as you as far as how little we get paid on them. I wouldn't go any lower than the actual cost if I was doing a one year upgrade.
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