In Spain, top 2 wireless carriers stop phone subsidy: US carriers watching closely

[lordofthereef]

Apple seems to prefer pandering to carriers to gain their money (not just through subsidies). They are the only phone manufacturer that lets carriers have such deep control over the user experience of the device.

There is some give and take here, to be fair. Apple is the only device manufacturer to my knowledge (at least in the states) that doesn't let the carriers touch their OS with branding, theming, bloatware, etc.

 

[EbookReader]

will consumers benefit if carriers stop phone subsidy?

 

[Applejuiced]

will consumers benefit if carriers stop phone subsidy?

Wow, 7 month later you replied and brought this back up?

 

[wordoflife]

will consumers benefit if carriers stop phone subsidy?

Not in the US. Most of the networks here are mostly incompatible with each other. You buy a Sprint iPhone, you're not going to be able to use it on Virgin, C-Spire, Verizon, etc. In Europe (Spain), all of the networks use GSM technology. I really doubt carriers would be willing to give you a discount on your monthly plan (let's say anywhere from $40-$50) if you bring your own device. If they decide to pay for the subsidy then they know that 1) You will be obliged to stay with them for 24 months and 2) They've paid off the subsidy and are getting *profits* from the device if you haven't upgraded in 2 years... which many people end up doing.

I really doubt they'll do something like that in the USA where the iPhone is so popular (unlike in Spain or Greece). I know soooo many people with iPhones, but I don't think more than 2-3 would buy them at full price.

 

[unlimitedx]

Not in the US. Most of the networks here are mostly incompatible with each other. You buy a Sprint iPhone, you're not going to be able to use it on Virgin, C-Spire, Verizon, etc. In Europe (Spain), all of the networks use GSM technology. I really doubt carriers would be willing to give you a discount on your monthly plan (let's say anywhere from $40-$50) if you bring your own device. If they decide to pay for the subsidy then they know that 1) You will be obliged to stay with them for 24 months and 2) They've paid off the subsidy and are getting *profits* from the device if you haven't upgraded in 2 years... which many people end up doing.

I really doubt they'll do something like that in the USA where the iPhone is so popular (unlike in Spain or Greece). I know soooo many people with iPhones, but I don't think more than 2-3 would buy them at full price.

the problem is that there aren't too many pre paid phones plans that are at a cheap enough price with a large bucket of data. not straight talk with their invisible cap of 2gb of data where they will cut you off for "excessive" usage of their "unlimited" data plan. if there were better plans available it would be a no brainer for people who can calculate the savings

 

[wordoflife]

the problem is that there aren't too many pre paid phones plans that are at a cheap enough price with a large bucket of data. not straight talk with their invisible cap of 2gb of data where they will cut you off for "excessive" usage of their "unlimited" data plan. if there were better plans available it would be a no brainer for people who can calculate the savings

That's also the other problem. Smaller carriers like that don't have networks that can compete with the big three or four. Most people will still be inclined to stick with Sprint AT&T or Verizon

For example, Virgin Mobiel has a $35/mo plan. But you won't get LTE. You won't even get good 3G speeds.

 

[EbookReader]

what would happen if AT&T and Verizon announce that they will sell their smartphones at full-price?

Customers can pay the phone off in installments.

High end smartphone: $199 upfront and $20 a month over 24 months installment (total $199 + $480 = $679)
Mid-Range smartphone: $99 upfront and $15 a month over 24 months installment ($459 total)

T-Mobile is itching to go in this direction.