T-Mobile Says Device Subsidies Are Bad, But Change is Hard

[JMcEntegart]

"If I were king for a day..."

T-Mobile Says Device Subsidies Are Bad, But Change is Hard : Read more

 

[amdphenomx4]

Or you know, they could make phones cost on the level of tablets. It does not cost over 200 dollars to make most phones. Sell them around the price of tablets. 400-500 dollars. The manufacturers wont though, as they sell them for more than this to the carriers, and thus make more monies.

Tl;Dr Tablets should be more expensive than phones, not the other way around.

 

[frostyfireball]

I too wish the subsidies would go away; I'd gladly pay a little more upfront if I can then take my business anywhere I want with an unlocked phone, rather than being stuck with one carrier for 3 years even if they end up being a royal pain. I do that already, but the selection of phones is hurt considerably by the carriers locking their phones to their networks and I have to import my phones from overseas.

Carriers would also compete on price for the plans more aggressively rather than the gouging they do currently in North America on most carriers.

 

[rex86]

When buying subsidized phone you are actually paying a lot more money. A lot more than $400.

 

[leo2kp]

Most phones are paid off via loan payback on your contract, around $15 a month. You still end up buying the whole thing.

 

[guess who]

There are NO subsidized handsets, regardless what the clueless pundits keep writing. It is the same situation as financing a car purchase; a little bit down and the rest over 24-36 months. Just because it is not itemized on your statement does not mean it is not there.

I like this model however. I can pick up used HW for a song, precisely because this sales model devalues HW. If you only think you paid a hundred or two for it, you'll sell it to me really cheap, right?

I love a sucker.

 

[victorintelr]

I think the CMO's point is that even though people payback the phone with the 2 year contract, it stays in their mind more the price they paid upfront (let's say, 200 dollars) than the real price that they end up pays because at the end of the 2. years the person will be thinking "I only paid 200 dollars for this, I'm gonna replace it now " even though they probably paid much more for the phone and by just changing it they depreciate the original value of it 'cause guess what, is not only one, is most people that do it.

 

[tnai]

Say NO to T-Mobile. I had a 2-year family plan and when I tried to exit the plan, they said it was the 3-year plan. No good connections (can't receive or make calls often). It was under someone else name. When I switched to AT&T and ported my old number, they came up with $49.99 fee for nothing. Never ever try these suckers.

 

[jojesa]

I would agree to pay the full price of the hardware if T-Mobile will have a better service plan: Unlimited service for $39.95 (voice, data, text).
They all overcharge for the hardware and service, that is the only reason we sign two-year contracts.

 

[hoofhearted]

[citation][nom]rex86[/nom]When buying subsidized phone you are actually paying a lot more money. A lot more than $400.[/citation]

Your logic is flawed. Your are not paying a lot more money because the carriers do not offer a cheaper price when you bring your own phone. They are ass-raping us with jackhammers in this country. There are only two GSM providers which means you can just get another simcard. All of the rest are CDMA which means they lock the phone to their service anyway and blacklist others.

I am sure this t-mobile ass-clown is just saying this for good pr. If they really were about the consumer, they would discount your rate after your contract was up.

 

[Lekko]

It would also be nice if carriers would drop the rates for off-contract users, only they don't. You still end up paying the 'subsidy price' as your monthly rate without actually getting anything out of it. I've seen many people go years off contract, still paying the subsidy price without ever getting a new phone because they hate contracts. In that case, the carriers win because you are overpaying for service.

 

[Guest]

If they're not going to subsidize the cost of the phone, then the quality needs to go way up. Sure the phones are feature rich, but they don't last much more than two years. If they did, the telco would make you sign a longer contract. Also, good luck finding someone to make a cross-carrier phone - half of the telco's expenses go to paying a phone maker to make a phone for their network. The phone makers aren't going to give that up.

 

[SmileyTPB1]

All I can hear is Thompson Twins in my head.

 

[panders4]

[citation][nom]hoofhearted[/nom]Your logic is flawed. Your are not paying a lot more money because the carriers do not offer a cheaper price when you bring your own phone. They are ass-raping us with jackhammers in this country. There are only two GSM providers which means you can just get another simcard. All of the rest are CDMA which means they lock the phone to their service anyway and blacklist others.I am sure this t-mobile ass-clown is just saying this for good pr. If they really were about the consumer, they would discount your rate after your contract was up.[/citation]

You have to switch to a prepaid plan if you want the cheap off contract prices. I only pay 30 bucks a month for a smart phone with 5 gig of data on T-mobile. It's good enough for me.

 

[shoooooggggggoth]

[citation][nom]hoofhearted[/nom]Your logic is flawed. Your are not paying a lot more money because the carriers do not offer a cheaper price when you bring your own phone. They are ass-raping us with jackhammers in this country. There are only two GSM providers which means you can just get another simcard. All of the rest are CDMA which means they lock the phone to their service anyway and blacklist others.I am sure this t-mobile ass-clown is just saying this for good pr. If they really were about the consumer, they would discount your rate after your contract was up.[/citation]
Actually, your post is flawed because you quite clearly can talk shit but you're too dumb to do a little research first. T-mobile offers a ton of plans that are cheaper without a subsidized phone. Value plans are cheaper with a sim card, monthly plans are cheap and don't include a phone, and prepaid plans are cheap. Using a value plan you can get the same thing on Tmobile as on Sprint for $30 less, without a phone

 

[sykozis]

Instead of blaming subsidies for their inability to compete, maybe T-Mobile should focus on expanding and updating their network..... It's hard to compete when you have have spotty coverage compared to the companies you're trying to compete against. Oh yeah, that $300+ cancellation fee doesn't help either.

[citation][nom]frostyfireball[/nom]I too wish the subsidies would go away; I'd gladly pay a little more upfront if I can then take my business anywhere I want with an unlocked phone, rather than being stuck with one carrier for 3 years even if they end up being a royal pain. I do that already, but the selection of phones is hurt considerably by the carriers locking their phones to their networks and I have to import my phones from overseas.Carriers would also compete on price for the plans more aggressively rather than the gouging they do currently in North America on most carriers.[/citation]

Handsets being locked to a carrier has nothing to do with carriers subsidizing the cost of the handset. CDMA phones are locked to carriers due to the networks they use. Also, you can't use a CDMA phone on a GSM network.

 

[sykozis]

[citation][nom]jojesa[/nom]I would agree to pay the full price of the hardware if T-Mobile will have a better service plan: Unlimited service for $39.95 (voice, data, text).They all overcharge for the hardware and service, that is the only reason we sign two-year contracts.[/citation]
With T-Mobile's network and business practice....that deal would still be a rip-off. Unless they've changed their practices, T-Mobile is the only carrier that rounds up usage.

 

[AznCracker]

I go for the cheapest plan because $10 cheaper on the plan a month will equal out to $240 after the contract is up.

I also think subsidizing phones is bad because if the consumer breaks their phone, they would have to pay the full price for the phone. Of course one could go through ebay or craigslist to get it cheaper than retail, but those prices are still very high.

Like t-mobile said, the subsidizing makes us throw away a phone after the contract is up, which is a complete waste.

If the phone are unsubsidized, the carriers could then lower the cost of plans because they don't have to recoup their loss from subsidizing your phone. Also unsubsidizing the phones will allow the phones themselves to compete instead of tying them to a carrier.

 

[killerb255]

...then again, this subsidiary model creates a market on eBay, Craigslist, etc. to sell phones there. Buy a phone used at a discount with no contract...why not?

The only problem, of course, is trusting whether the phone is/can be unlocked without the help of a carrier (Google is your friend here), and if the phone was stolen. If it were stolen, then the ESN (if it's CDMA) may be blacklisted, and you end up buying a $150-$250 paperweight unless you know how to clone your ESN from your old phone to that one (which can get you in BIG trouble if you're caught)...

 

[alidan]

[citation][nom]killerb255[/nom]...then again, this subsidiary model creates a market on eBay, Craigslist, etc. to sell phones there. Buy a phone used at a discount with no contract...why not?The only problem, of course, is trusting whether the phone is/can be unlocked without the help of a carrier (Google is your friend here), and if the phone was stolen. If it were stolen, then the ESN (if it's CDMA) may be blacklisted, and you end up buying a $150-$250 paperweight unless you know how to clone your ESN from your old phone to that one (which can get you in BIG trouble if you're caught)...[/citation]

i want a use iphone or android, one of the better ones, to use as a bar code scanner/portable camera.

if i go through a store... well i get screwed there, because they sell it barely cheaper than new
if i go through a person... well i could spend 1-200$ on a stolen phone and if found out by cops, ill be out a phone and 1-200$ because of stupid laws.