Two-Year Contracts Are Going Away — And That's Good For You

[PhilipMichaels]

Sprint became the latest carrier to pledge to do away with two-year contracts, introducing a leasing program centered around the iPhone. Here's why the days of two-year contracts are numbered.

Two-Year Contracts Are Going Away — And That's Good For You : Read more

 

[zilexa]

@Philip Michaels, writer of this article. Did you do any kind of research in leasing a phone? If you did, you would have known the concept is not new and has been introduced years ago in other countries (KPN in Netherlands for example, 2012). It was a total failure because it was actually more expensive. After leasing it, you do not become owner (that's your assumption).

After this lease construction fails in the US, you will notice the discounts on phones will get lower and it will get more interesting to simply buy your phone and use a sim-only contract.

it is too bad Tomsguide is a very US centric site and does not mix in tech facts from outside the US.

 

[brazuka331]

Carriers recoup that cost over time, but would prefer to get that money upfront or in steady monthly installments.

aren't these two things essentially the same thing? "recoup that cost over time" and "monthly installments"

 

[sven1olaf]

Carriers recoup that cost over time, but would prefer to get that money upfront or in steady monthly installments.

aren't these two things essentially the same thing? "recoup that cost over time" and "monthly installments"

not only that, but the advantage to the previous 2 year deal was that you owned the phone after that. You could sell it on ebay, give it to a family memeber, whatever.

the lease idea is a non-starter wrapped in more expensive packaging