Question about carriers and phone bills.

[patent10021]

Why do phone bills stay the same (when purchasing other mobile phones) even though the contract is over? e.g. if I pay for the iphone outright at Softbank I'm not paying monthly for my phone on top of my carrier bill. The phone bill is basically half of what it would be if i paid monthly for the iphone as well. [$40 if I pay $600 for the iPhone and about $80 if I choose to pay monthly for the iPhone].

With my current carrier KDDI, my 2 year contract finished ages ago but I'm still paying the same price that I paid when I signed up. Is that why people always upgrade after the contract is finished? Because for a new phone it's basically the same monthly bill? So really, one should always upgrade or pay cash upfront and upgrade?


Also, since other carriers here don't have unlimited data plans, there's no point in buying an unlocked ip4 hey?. There's only one carrier that has unlimited data plans which is the same carrier that has the iPhone, Softbank. Unlocking the iP4 to use on another carrier wouldn't make any sense. Why do people care so much about unlocked iPhones if other carriers don't have unlimited data plans?

 

[Zepaw]

That is an interesting observation. They probably charge it because they can.

 

[patent10021]

They probably charge it because they can.

I've come to that conclusion as well and find it hard to swallow. Therefore I will never do it again. I've been paying $80 a month (extra $40) for a phone that's 3.5 years old. Been paying the same price every month for 3.5 years without a new frikkin' phone.

I figure why pay $80 per month for this old ghetto phone on KDDI when for the same price I can be using an iP4 (or other new smart phone). Same frikkin price every month as I'm paying now. I don't have any special features on my 3.5 yo ghetto phone. Just a phone with normal email. That email USED to be special 4/5 years ago as it has always been full blown email in Japan whereas back in North America they only had SMS.

But this is 2010/11. Wtf am I doin' holding on to this phone. That's why I ordered the iP4 last week


Still I want to know why all mobile carriers are doing this. After the contract people are still paying the same price. Why? I don't understand it. Monthly bill should be cut in 1/2 approx. These carriers must all be laughing to the bank. Not must, are.

 

[Zepaw]

I forget the stat but a prepaid service brochure said some high number, like 30% of people, are not under contract and do not realize it. If more people caught on I am sure it would change. As it is why be the provider to drop your prices if every other carrier keeps them high? Tough on customers but it makes business sense.

 

[old-wiz]

Logically if you pay the subsidized price and get a phone for a 2 year contract, then part of the monthly fee goes towards paying off the cost of the phone, right? So at the end of 2 years the phone is paid for and they should reduce the monthly fee since you have paid off the phone. Or if you buy a phone outright your monthly fee should be less than someone who bought at the subsidized price.

Phone companies get away with it cause they know that customers have no alternative.

 

[patent10021]

Logically if you pay the subsidized price and get a phone for a 2 year contract, then part of the monthly fee goes towards paying off the cost of the phone, right? So at the end of 2 years the phone is paid for and they should reduce the monthly fee since you have paid off the phone. Or if you buy a phone outright your monthly fee should be less than someone who bought at the subsidized price.

Phone companies get away with it cause they know that customers have no alternative.

??????????

I said all that in my first post. lol What Zepaw said above is the reason why though. Most people don't think about the fact they're paying the same price even after the contract is over. That's why you SHOULD upgrade after every contract or buy with cash and pay less monthly. I just wasted the price of an iPhone for the past 1.5 years.

 

[Daveoc64]

At the end of my last O2 contract in the UK I could either have:

- Chosen a new phone with new 18/24 month contract (same tariff)

- Received a £150 credit (same tariff) with a 18/24 month contract

- Switched to a SIM-only deal (about 1/2 the price of my previous tariff) on a month to month basis.

I chose the latter until the iPhone 4 launched.

 

[ToroidalZeus]

It depends on how service providers operate in your country.

Here in America, your carrier is offering the phone to you at a lower price (subisdy) for your agreement to use their service for 2 years (post paid). ~It's either pay for the phone upfront at full price or get subsidy by promising to be a loyal customer for 2 years. Which means the actual cost of the phone isn't anywhere in your monthly bill thus explaining why your service doesn't get lower once your contract is up.

Like I said, that's how it works in the US and I am assuming it's similar to how it is in Japan for you. In other countries it might be different.

 

[japanime]

OP, if you haven't yet switched to Softbank, you may want to consider doing so. In recent months, their network has become very unreliable. At least, that's been my experience in the Tokyo area. Not sure if it has to do with the overwhelming number of people jumping onto the iPhone bandwagon, or just an overall deterioration in service.

I'm seriously considering unlocking my 3Gs and using it on DoCoMo's network instead.

 

[patent10021]

OP, if you haven't yet switched to Softbank, you may want to consider doing so. In recent months, their network has become very unreliable. At least, that's been my experience in the Tokyo area. Not sure if it has to do with the overwhelming number of people jumping onto the iPhone bandwagon, or just an overall deterioration in service.

I'm seriously considering unlocking my 3Gs and using it on DoCoMo's network instead.

Is it just an iPhone thing? Because all my friends using other Softbank phones as well as iPhones have no service issues. I'm around Osaka so who knows what's different.

Anyway I think Docomo and KDDI are a no go because both of them don't have unlimited data plans. There would be no point in unlocking to use the iPhone on those carriers.



.