ETF Fees vs. Discounts on Equipment
http://www.rcrnews.com/news.cms?newsId=23759 »
There have been several items in the news lately regarding ETF fees, whether or not they are harmful and that they should be eliminated.
The report above states that over 70% of consumers surveyed believe ETF fees would be eliminated, but like a typical survey it did not offer any information for comparison.
I am sure 100% of consumers would love to see the ETF go away if there was absolutely no other financial impact. The problem is there would be financial impact. So, to offer our own non-scientific survey here I thought I would throw out my ideas of what the actual "choice" would be if the ETF was eliminated.
In order to eliminate the ETF (or if it was forced upon companies by soc...
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There have been several items in the news lately regarding ETF fees, whether or not they are harmful and that they should be eliminated.
The report above states that over 70% of consumers surveyed believe ETF fees would be eliminated, but like a typical survey it did not offer any information for comparison.
I am sure 100% of consumers would love to see the ETF go away if there was absolutely no other financial impact. The problem is there would be financial impact. So, to offer our own non-scientific survey here I thought I would throw out my ideas of what the actual "choice" would be if the ETF was eliminated.
In order to eliminate the ETF (or if it was forced upon companies by soc...
(continues)
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The estimated stated that ETF fees cost consumers 4.6 billion. What they failed to mention was how much consumers SAVED because they signed a service agreement.
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texaswireless said:
So, consumers, what would you rather do? Risk an ETF but get upfront benefits that exceed said ETF or have no ETF but pay higher costs for your service? There is no option C, at least not in the short term.
These "upfront benefits" are usually in the form of free/discounted phones, correct? Most people are gonna rush to get whatever deal they feel they can get, yet want to complain about the ETF, which usually equals the amount that they would've paid for the phone. I personally prefer to not sign a contract and just pay full price for the phone. You have to think about the fact that a $250 phone with zero commitment pretty much equals a $20 phone with 2yr contract.
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So you would rather pay $250 for a phone you could get for say $99 and not deal with a contract?
I'll mark you down.
I'll mark you down.
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Exactly. Because you never know what kind of personal budget cuts you'll have to make within that 2 years. Thats why I like the service I have now. I've always been a Cricket customer, if you're familiar with that carrier.
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I prefer full price purchases with no ETF, such as the employee plan I'm on right now.
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Without phone subsidies, there would be FAR fewer new customers. It's easy for someone to make an impulse buy on mobile phones when they cost $0 for the phone plus applicable activation fees, but most middle class families who have shared plans wouldn't even consider signing up if they had to pay $120+ PER PHONE. Yes, it sucks when you have to pay an ETF. But mobile phones are EXPENSIVE pieces of equipment even for entry level models, which is masked by all the 'free phone' offers made possible by subsidies, which are made possible by contracts, and ETFs.
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I prefer to buy the phone new or used and not obligate myself to the terms and conditions that are weighted solely in the carrier's favor. Yes, Even if it costs me slightly more. I have Cingular on month to month (no M2M) and a few months left on my Verizon contract. I bought a SE T637 used for $50 for use with Cingular. Nice phone.
The subsidized phones can be had much cheaper then retail if one looks around anyway or does not have to be on the bleeding edge.
The subsidized phones can be had much cheaper then retail if one looks around anyway or does not have to be on the bleeding edge.
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If you are willing to settle for a used phone deals can be had. The difference between a used phone and a used car is that most car repairs (in case the one you bought has issues) don't cost more than the car itself.
If you buy a used phone for $50 and it has an issue you might be paying $100 or more for the repair.
If you buy a used phone for $50 and it has an issue you might be paying $100 or more for the repair.
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I have a family plan with three phones. I would much rather face the possibility of paying an ETF than pay full price for 3 phones.
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It's a bit hard for me to decide. Personally, (courts think this way too) the ETF is more like a penalty and it should not be enforced. Stuff like that should only include actual damages, such as lost profits or to recover the discount on the phone. It should also be prorated. If after 23 months I have to or decide to cancel, why should I pay $200 in ETF when more than likely, the company already made back all of their money, and if I stay for one more month, I'm just going to pay $29.99 (fees and what not are supposidly going to the government, so I'm not counting that).
That said, I guess I'm going to say keep it like it is with a choice. They can either take the ETF and get a discount or pay full price, lose some benfits, but be...
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That said, I guess I'm going to say keep it like it is with a choice. They can either take the ETF and get a discount or pay full price, lose some benfits, but be...
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I look at it this way: an end to ETF would probably slow down the industry quite a bit...and then instead of carriers pushing manufacturers to make cheaper handsets, the manufacturers can make whatever they want without regard to affordability. I hate having an ETF with my service provider, but I'd rather have the ETF than pay out my nose for the phone - the price difference for the phone is greater than the ETF would be.
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