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AT&T CEO: Carriers Can't Afford Big Subsidies for Devices Any Longer
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I know right?. Rumor has it there's one company that pulled down $41 billion in profit last year. How can they live with themselves?
This would be great, but the carriers won't cut the monthly fees by more than a token amount. They are simply too greedy.
I think the whole push is simply to find ways to charge customers more for the same service/equip,ent.
I'm currently on a legacy, non-shared plan.
You know what the irony is?
If I pay full price for my next phone upgrade (thus saving $15 a month), AND I get my foundation discount through work, and get the same amount of data in the plan I have now (4GB data, one smartphone using it)... I'll STILL be paying more than I am now.
These new share everything data plans are a complete rip-off. It was basically a price hike disguised as a new offer. For an existing customer with a legacy plan it makes more sense to upgrade normally, stay on contract and get what is in effect a *FREE SUBSIDY* compared to the new plans.
You know what the irony is?
If I pay full price for my next phone upgrade (thus saving $15 a month), AND I get my foundation discount through work, and get the same amount of data in the plan I have now (4GB data, one smartphone using it)... I'll STILL be paying more than I am now.
These new share everything data plans are a complete rip-off. It was basically a price hike disguised as a new offer. For an existing customer with a legacy plan it makes more sense to upgrade normally, stay on contract and get what is in effect a *FREE SUBSIDY* compared to the new plans.
I wonder if, with this announcement, AT&T is firing a shot at Apple. AT&T has acquiesced to Apple's extraordinary demands for many years. But now the new(er) kid on the block, Android, gives AT&T what it wants -- cheaper handsets and customers who will pay their exorbitant data plan fees. Plus, AT&T can control what software is on many Android devices and also imprint their label on them. What's not to love about that for AT&T?
If Verizon follows suit (which they inevitably will), Apple will find themselves selling their iPhones in a completely different market situation, and may find their market share begin to rapidly dwindle.
If Verizon follows suit (which they inevitably will), Apple will find themselves selling their iPhones in a completely different market situation, and may find their market share begin to rapidly dwindle.
The United States' of America was a growing leader in technological advances. Yet we cannot:
1. Have internet for everyone
a. Have decent speeds, even Romania is rolling out 100mbps for everyone cheap.
b. Internet companies like Verizon are capable and choose to charge us a lot.
2. Pay 2x if not 10x as much for college books.
3. Be charged for data at ridiculous amounts.
a. Be charged to use the same data through another device.
c. Where shared plans cost more than the original family plan.
I have a buddy in Canada who pays less than me, gets more data (6GB), 500 minute international calls/unlimited talk/unlimited text.
It seems we are the land of the free. Where monopolies can charge us whatever they want. They barely pay any taxes, get money from the government to build wiretapping infrastructures and raise prices because they have to meet a 25% revenue increase.
1. Have internet for everyone
a. Have decent speeds, even Romania is rolling out 100mbps for everyone cheap.
b. Internet companies like Verizon are capable and choose to charge us a lot.
2. Pay 2x if not 10x as much for college books.
3. Be charged for data at ridiculous amounts.
a. Be charged to use the same data through another device.
c. Where shared plans cost more than the original family plan.
I have a buddy in Canada who pays less than me, gets more data (6GB), 500 minute international calls/unlimited talk/unlimited text.
It seems we are the land of the free. Where monopolies can charge us whatever they want. They barely pay any taxes, get money from the government to build wiretapping infrastructures and raise prices because they have to meet a 25% revenue increase.
That's your anecdotal evidence. I have experienced similar gains in service switching to T-Mobile in the area where I am most of my life (work, home and the surrounding areas) as the poster you were replying to.
Simply, check for yourself before you buy into the "AT&T and Verizon service is unbeatable" marketing speak. It's not true everywhere.
Maybe if they started to give real discounts to phones off contract people would change their buying habits.. Instead you still pay the same price for your old plan, doesn't matter if its on or off contract. And while your at it AT&T get rid of the charge for Texting, should be included in Data!!! Stop making plans that you say are better but in reality are worse!
I just dont understand you people. You ask for subsidy, and then complain about high charges for voice and data. With device subsidy, you end up paying more even after your contract is over.
The no subsidy model has been applied for ages in EU and Asian countries and has been more successful.
With no subsidy, you just get the device you want and can afford, and then pay very less for monthly charges. I agree still $45 is kinda high, but that's because its the US, where you have provider monopoly.
When no subsidy, not many people will go for iPhones and Samsung galaxies which will end up in reduce in pricing for these devices or Apple and Samsung heading for a different approach to sell their devices.
Of course, the fanboys who can afford will pay what ever it is.
Exactly. Which is why I'm ditching my smartphone altogether next year. I'm not fighting it, because at this point in my life, I feel like I'm getting less and less out of a smartphone compared to when I had my iPhone 2G.
I use less than 30 minutes a month, I use 100MB to 500MB data a month. I don't text. So why am I paying $60-70 for?
$30 T-Mobile deal
Another T-Mobile deal. You can get 100 minutes + unlimited text & data (5 GB fast) for $30/month. The only catch is that you have to buy your "device" at Wal-Mart. The device can be a phone or a SIM card ($39.95). Once you have the SIM (cut down to nano-SIM in my case), put it in your iPhone and activate online.
SIMs and phones purchased elsewhere can NOT be activated on this plan, including the original nano-SIM included with a T-Mobile iPhone. You have to get the Wal-Mart one. If you don't live near a Wal-Mart you can order online and have it shipped.
Another T-Mobile deal. You can get 100 minutes + unlimited text & data (5 GB fast) for $30/month. The only catch is that you have to buy your "device" at Wal-Mart. The device can be a phone or a SIM card ($39.95). Once you have the SIM (cut down to nano-SIM in my case), put it in your iPhone and activate online.
SIMs and phones purchased elsewhere can NOT be activated on this plan, including the original nano-SIM included with a T-Mobile iPhone. You have to get the Wal-Mart one. If you don't live near a Wal-Mart you can order online and have it shipped.
I upgrade every two because my carrier (VZW) charges me for the subsidy whether or not my phone is paid for. I think that is why most upgrade. If they no longer want to do the subsidy, then I will replace my phone as needed which would result in me replacing my phone a lot less often, which would result in my carrier making less money every year.
Aren't they doing this now that the new phone subsidy for existing accounts doesn't kick in until 24 months vs. 18 months previously? Of course ATT does nothing to encourage users to keep there phone longer like lower their existing rate after two years if they opt to forgo a new phone for another year. It's mostly just turn left, turn right, walk straight, walk backwards, jump vertical, leap down... we'll grab all your money regardless.
What were AT&T's profits for 2012? Was AT&T Wireless profitable in 2012?
What were their profits for 2013? Will AT&T Wireless be profitable in 2013?
The articles should have said, PROFITS will be HIGHER if we don't subsidize phones anymore.
I do not know these figures, and if they are losing money year in and out, I could understand, but I don't remember ready anywhere AT&T was LOSING money year in and year out in its wireless business.
What were their profits for 2013? Will AT&T Wireless be profitable in 2013?
The articles should have said, PROFITS will be HIGHER if we don't subsidize phones anymore.
I do not know these figures, and if they are losing money year in and out, I could understand, but I don't remember ready anywhere AT&T was LOSING money year in and year out in its wireless business.
I agree with you about most people upgrading every two years mainly due to the subsidy except that in your scenario, it's Apple that makes a lot less money, not the carrier. The carrier makes money off the monthly charge, not selling the phone.
I think people are forgetting that these "subsidies" we're negotiated by AT$T and Apple back when the very first iPhone was being released. It helped Apple offset the presumably high manufacturing costs. Now in 2013 economies of scale have most likely reduced the manufacturing costs to where "large" subsidies are not needed.
Sigh, but instead of renegotiating with handset makers to lower subsidies as a percentage of manufacturing costs, it will be much MUCH easier for the greed-laden wireless companies to pass the costs onto customers.
Sigh, but instead of renegotiating with handset makers to lower subsidies as a percentage of manufacturing costs, it will be much MUCH easier for the greed-laden wireless companies to pass the costs onto customers.
I don't blame the carriers, I blame the device makers. Let me explain. Why is it that I can get a tablet device for $300, but a Phone with a much smaller screen costs $800? That doesn't make sense. We already know that is actually costs Apple about $200 to make an iPhone, so why the ridiculous up charge?
The device manufacturers need to start charging a reasonable price, and rest of the economics will fall into place. It comes down to greed. Apple (and other manufacturers) charge a high price because they CAN. Price the phones at a reasonable margin, and there won't be an issue.
The device manufacturers need to start charging a reasonable price, and rest of the economics will fall into place. It comes down to greed. Apple (and other manufacturers) charge a high price because they CAN. Price the phones at a reasonable margin, and there won't be an issue.
not quite
Thanks for the link - I hadn't heard of this before.
But the 2 GB plan says $55/mo rather than $45 (although you do get 3rd month free). Is there some special deal to get to $45?
Thanks for the link - I hadn't heard of this before.
But the 2 GB plan says $55/mo rather than $45 (although you do get 3rd month free). Is there some special deal to get to $45?
i remember the days when you were charged minutes even if you called someone on the same network
How do we know they're specifically targeting Apple? For all we know, they could subsidize Android phones more than the Apple ones by giving away many of them for free. Also, model revisions come out more abundantly there than they do in the Apple world.
And how long do you think they're going to keep subsidies around after AT&T drops them. I give them each a few months, maybe a little longer for Sprint. What's your plan then?
Most android high-end phones are sold at a loss Samsung is the only one probably making profits