cablechewer
Distinguished
- Nov 12, 2008
- 46
- 0
- 18,580
Chripuck, I am not asking them to reduce what they charge for the running of their network - only to separate out and display what they charge for their network. Somewhere in each of the wireless carriers is an accountant who knows what portion of their gross revenue goes to new phone subsidies, what portion is profit and what portions cover other costs.
Right now if you get a new phone and elect to keep it when your contract runs out you still pay the same monthly bill as if you got a new phone for free. In this instance, yes, I would hurt the phone company because I would ask that the phone subsidy portion of the bill be removed when the phone is paid for. If change results in lower profits you can bet the carriers would raise the rates they charge for the network.
Note also that I did mention financing a phone if you did not buy it outright. That provides an opportunity for the carrier to charge interest (no doubt this is already built into our monthly rates). So if you put down $50 on a $500 phone the remaining $450 plus interest would be collected over the duration of your 1 or 2 year contract. Net result for the person who gets a new phone with every contract? Nothing except the transparency of knowing exactly what they paid for service and exactly what they paid for the phone.
I am no accountant, but I am hoping that between the interest and markup charged on new phones that the idea would be close to revenue neutral. You can bet that if it leaves them even a penny short the carriers would find a way to extract that money from the consumer.
Right now if you get a new phone and elect to keep it when your contract runs out you still pay the same monthly bill as if you got a new phone for free. In this instance, yes, I would hurt the phone company because I would ask that the phone subsidy portion of the bill be removed when the phone is paid for. If change results in lower profits you can bet the carriers would raise the rates they charge for the network.
Note also that I did mention financing a phone if you did not buy it outright. That provides an opportunity for the carrier to charge interest (no doubt this is already built into our monthly rates). So if you put down $50 on a $500 phone the remaining $450 plus interest would be collected over the duration of your 1 or 2 year contract. Net result for the person who gets a new phone with every contract? Nothing except the transparency of knowing exactly what they paid for service and exactly what they paid for the phone.
I am no accountant, but I am hoping that between the interest and markup charged on new phones that the idea would be close to revenue neutral. You can bet that if it leaves them even a penny short the carriers would find a way to extract that money from the consumer.
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