Verizon CEO wouldn't mind if U.S. regulators ban phone subsidies

[Michael CM1]

Why on earth is mobile service so expensive in America?

Compared to England, the US has fewer people per square foot. Therefore the infrastructure costs more.

 

[EbookReader]

Come on now, most of us have dealt with AT&T and Verizon for several years now and we know that they don't *lower* prices. They may offer more or better service for a higher price -- but they don't lower prices.

They would if there is no subsidy.

$199 upfront
$20 a month installment for device
$100 a month for service contract

is the same as

$199 upfront and
$120 a month contract




If they don't lower the price, then it would be

$199 upfront
$20 a month installment for device
$120 a month service contract

Which make their plan $20 a month higher than before. A business can raise their prices but it will mean lower volume.