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Great news, and hopefully Canada follows suit. The way I see it, if you're in a contract, you still have to pay to get out of it, so what's the point of locking the devices anyway? If there were no penalties for breaking your contract it would make sense. As it is now though, it's redundant and in my opinion only there to make carriers more money (in Canada, carriers charge to unlock even if you're out of contract).

Umm Canada is ahead of the US in this area.

The new code will allow consumers to:

Terminate their wireless contracts after two years without cancellation fees, even if they have signed on for a longer term.
Cap extra data charges at $50 a month and international data roaming charges at $100 a month to prevent bill shock.
Have their cellphones unlocked after 90 days, or immediately if they paid for the device in full.
Return their cellphones, within 15 days and specific usage limits, if they are unhappy with their service.
Accept or decline changes to the key terms of a fixed-term contract (i.e., two-year), and receive a contract that is easy to read and understand.

Edit: I guess it's not mandated that unlocking be free. We'll see what happens when these come into full effect at the end of this year.
 
Are you capable of buying a product without the gov't telling you what's good for us. If no one wants the product or cannot afford it, the company will eventually go out of business or we'll get some great competition. Stop depending on Gov't to regulate everything.

What exactly does this have to do with the topic at hand? How is the government telling you what's good for you by requiring cell phone carriers to keep phones unlocked? This anti-government paranoia is just sad to watch.
 
Of billions of people on earth, .0001% of them known terrorists or those who are in contact with them, they are after YOU. You must be very, very important.
 
This is beyond what government should be able to do. If a company is paying >50% of the actual cost of the phone, they're entitled to put whatever restrictions they like. Anyone who thinks government can just force companies to sell us unlocked phones for what locked phones cost now is not being honest with him/herself.

Anyone who thinks a company is paying >50% of the actual cost of the phone is no being honest with him/herself :)
 
What exactly does this have to do with the topic at hand? How is the government telling you what's good for you by requiring cell phone carriers to keep phones unlocked? This anti-government paranoia is just sad to watch.

I agree. I'm a right wing conservative (minus nut status), but completely support the White House on this one.

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Anyone who thinks a company is paying >50% of the actual cost of the phone is no being honest with him/herself :)

Yea, we need to remember that what sprint pays apple and what WE pay apple may not be equal. Smi
 
This is great. But I could also see it having the negative side effect of cellular companies building proprietary/incompatible networks so that devices built for their network can only be used on their network.

That would be business suicide; by doing that, they would be excluding themselves from the mainstream, and forcing new clients to buy (expensive) new handsets. Once the industry goes 'unlocked', it would be exceedingly difficult for any ONE carrier to go the 'incompatible' route again.

OK- so are they asking that this be done despite carriers offering incentives to customers by selling discounted phone? Or is this for companies to do on non-discounted phones or phones off-contract?

Non-discounted and off-contract phones, already come unlocked.
 
I agree. I'm a right wing conservative (minus nut status), but completely support the White House on this one.


It's not even a partisan thing. There are just some people who are anti-government regardless of the topic at hand. Most of these people are on the right wing, but it doesn't mean most of the right wing is like that.
 
I agree. I'm a right wing conservative (minus nut status), but completely support the White House on this one.

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Yea, we need to remember that what sprint pays apple and what WE pay apple may not be equal. Smi

If Apple's gross margins are more than 30%; what we pay and what the wholesale price is, is very different.

Coupled with the fact that after you go month to month, carriers don't cut your bill. They get tons of extra money from me because I refuse to give up unlimited.

If you factor in a $400 subsidy over 24 months, then they get an extra $16/month from me. So my unlimited data now costs an extra $16 per month.
They don't want me off unlimited. They like the extra cash flow.
 
This is beyond what government should be able to do. If a company is paying >50% of the actual cost of the phone, they're entitled to put whatever restrictions they like. Anyone who thinks government can just force companies to sell us unlocked phones for what locked phones cost now is not being honest with him/herself.

This is exactly what the government is supposed to do. Locked phones impede competition, drive quality down, and prices up. Remember the company still has a contract and an early termination fee to protect them. Locking the phone is like gm selling you a car and then making it so you can only buy gas from their gas stations until the car is payed off. Then you have to make a special request to get the car to work with a diffrent gas station. It's anti-competive and anti-American.
 
When all phones are required to be unlocked on demand, you can kiss the $99 or $199 iPhone goodbye. They'll START at $499 or $549, to reflect the true retail value of the phones. It's locking that makes subsidized prices possible.

Yep and this is when people stop buying new iphones every couple years. I know that I cannot afford an iphone at full retail price. I hope this petetion gets denied.
 
No what's sad to watch is half of America needs the Government to take care of them. Very Very Sad.

You've still failed to explain how government regulation of corporations in the best interest of the customers is "government taking care of them".
 
Where was I wrong? I'd like to know so I can show my lack of knowledge more effectively.

You're wrong because the practice of locking phones has nothing to do with subsidization. The reason a phone is "apparently cheaper" to a user is because the phone company subsidizes part of the cost of the phone in return for a fixed term contract commitment from the buyer. If the buyer violates that contract by terminating early they are required to pay an early termination fee that offsets the cost of subsidization.

The act of locking a phone is just a way for the carrier to create an artificial barrier to the user taking that phone to another carrier. It's patently unfair, for a number of reasons. Imagine if you bought a car from Ford and they told you that you could only drive it on roads that they owned.

A locked phone costs no more than an unlocked phone. Price an unlocked phone and a locked unsubsidized phone and you will find that they cost the same price.

Clear enough?
 
Anyone who thinks a company is paying >50% of the actual cost of the phone is no being honest with him/herself :)

You're right. I realize I was simply wrong in saying that. My point still stands since no one forces you to pay for a locked phone, though I concede this argument only convinces those who are for an extremely limited government, who are in the minority.
 

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Yep and this is when people stop buying new iphones every couple years. I know that I cannot afford an iphone at full retail price. I hope this petetion gets denied.

And then one carrier decides to carpe diem by offering subsidised pricing just for a two year contract in return...Thus competition, once again, continues...

There's no way any US carriers would survive asking people to pay $500 for a new phone simply because they have to unlock it...:rolleyes:

This will force carriers such as SPRING to get their Ish together and FIX their damn network!
 
The only people who would suffer by this are the vendors because people would get a new phone every 5 years....

If they stop subsidies I predict that phone prices would fall just like TV's and all other consumer products.

After all you can buy a 50" LCD TV now for less than an unsubsidized iPhone.

Exactly. Cellphone prices, dumbphone or smartphone, have remained constant for well over 10 years. Why? Because people indirectly buy them (via carriers) with no regard to price due to subsides. And the carriers don't push for lower prices because they (the prices) are the only reason they can financially rape their customers. If prices come down, say goodbye to subsides, and then say goodbye to costly contract (which dwarf the prices carriers pay for subsides).
 
You're right in that there is a distinction between "locked" and "subsidized," but companies only sell locked phones subsidized. Why someone would buy a locked phone unsubsidized is beyond me, hence why I use "locked" and "subsidized" interchangeably.

To use them interchangeably is completely wrong, which is why I say you don't understand the market or model. It's best you learn how the market works before you spout off about things.

And BTW: I have bought locked and unsubsidized phones. Why? Because there was not an unlocked option, and I wanted a new phone before my contract was up. Not a big deal, since I was able to sell my existing phone on the secondary market for a price that was high enough to offset the price of buying the unsubsidized phone.
 
You're wrong because the practice of locking phones has nothing to do with subsidization. The reason a phone is "apparently cheaper" to a user is because the phone company subsidizes part of the cost of the phone in return for a fixed term contract commitment from the buyer. If the buyer violates that contract by terminating early they are required to pay an early termination fee that offsets the cost of subsidization.

The act of locking a phone is just a way for the carrier to create an artificial barrier to the user taking that phone to another carrier. It's patently unfair, for a number of reasons. Imagine if you bought a car from Ford and they told you that you could only drive it on roads that they owned.

A locked phone costs no more than an unlocked phone. Price an unlocked phone and a locked unsubsidized phone and you will find that they cost the same price.

Clear enough?

You're missing the point. I'm not arguing that companies will be hurt by this decision because unlocked phones somehow cost more. They'll probably be helped because they'll attract more customers. I just don't see why it's government's business. The ends don't justify the means for me.
 
When all phones are required to be unlocked on demand, you can kiss the $99 or $199 iPhone goodbye. They'll START at $499 or $549, to reflect the true retail value of the phones. It's locking that makes subsidized prices possible.

It's moreso the contract and ETF that makes subsidized prices possible.
 
When all phones are required to be unlocked on demand, you can kiss the $99 or $199 iPhone goodbye. They'll START at $499 or $549, to reflect the true retail value of the phones. It's locking that makes subsidized prices possible.

American cellphone carriers love cellphone subsides. They're the reason they can lock you in to lengthy contracts. Lay your worries to rest, they're not going anywhere.
 
Back here in singapore, carriers are not allowed to sell locked phones. Thus the carriers price the 16gb 5s at 420usd on a 2-year plan which comes at a 30usd monthly subscription. Comparing the high prices paid for phones on contract here vs in the US, there might be a chance the heavy subsidies will leave together with the locked phones

Check the US rate plans before making a comparison. Singapore is far cheaper than the US, and includes higher data limits, lower up front cost for similar monthly spend AND an unlocked phone.

Eg. A USD50/month plan on Singtel has an upfront phone cost of USD220 (including taxes) and 3GB data

A USD80/month plan has an upfront phone cost of USD40 and includes 4GB/month

Compare that to the cheapest AT&T plan at USD$70 which includes 300MB .. Your conclusion completely doesn't align with the situation.
 
All this will do is level the playing field...I'm with Sprint, and they keep talking about LTE coming soon any time I ask why I pay as much as someone who gets to rock LTE in their house while I can't even connect...SAME AMOUNT, let they live the good life while I PAY FOR IT. I'm too poor to suck it up, pay 5 ETFs, then go BUY 5 new phones.
 
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