5 ms·

I was wondering about that. Why bother buying an unlocked phone if your payments don't change? I mean, you have the freedom to change carriers at will, but I

by Splines 16y ago

I was wondering about that. Why bother buying an unlocked phone if your payments don't change? I mean, you have the freedom to change carriers at will, but I wonder how often that's exercised.

kenjackson 16y ago
This is the fundamental win with the current US system. If every phone existed as an unlocked/unsubsidsidized variant -- those would still hardly move. Why pay $500 for a phone, when you can get the same phone for $199, but you simply have a two year contract. I've been with the same carrier for 10 years, despite having the option to leave at many points in time. In many regards, I think our subsidized mobile phone system trumps the systems outside of the US.
- grhino 16y ago
  A win from whose perspective?
  - kenjackson 16y ago
    The users. I get the carriers to give me $300 for something I plan on doing anyways (using their service for the next two years). It would be like Comcast subsidizing my purchase of a TV if I kept Comcast for two years. I'd jumpt on that deal now (assuming the subsidy was $300+ dollars), because I anticipate keeping Comcast for two years (even with the coming internet TV threats). And certainly for the past 10 years, it would have been an even bigger no brainer.
    - bad_user 16y ago
      That's bullshit ... what you get is lock-in for 2 years, a period of time in which they can fuck with you however they want, all for $300 ... which you pay back one way or another, especially when you've got a functional oligopoly: i.e. SMS messages are 4 times more expensive than receiving data from space. Yes I've been with the same carrier for 6 years, but I'm using a pre-paid plan, and I get better deals than customers with contracts. I can also scale down my monthly payments ... i.e. I'm only paying for included 3G traffic when I need it.
      - kenjackson 16y ago
        That's odd. I'm with Sprint. On a legacy plan from 2002. I get unlimited data for $10/month. They've never screwed me over, AFAIK. And, yes all this for $300. The choice you've made is to presumably pay $500 or more for the phone, and then maybe marginally cheaper monthly fees. Although I'd argue that my monthly fees are quite likely cheaper than yours, although its in a plan you can no longer get. But Sprint still grandfathered contracted customers with it. And last time I checked, all of the major cell phone carriers allow you to buy the phone w/o a contract. So feel free to spend the $500 for a phone. No one is stopping you.
        bad_user 16y ago
        > So feel free to spend the $500 for a phone. No one is stopping you. Actually I'm not spending $500 for a phone who's battery only lasts for a single day and has signal issues ... most smartphones are like that, I know ... unfortunately for all their capabilities, are kind of uncomfortable for making phone calls. I do have an iPhone 3GS, but I consider it a handheld with 3G connectivity that happens to be able to make phone calls. I'm paying 9 euros for a data plan with 1 GB per month / ~ 7.2 Mbps (the actual speed I'm getting, the plan is for ~11 Mbps). Of course, I live in Europe where prepaid plans are much more popular, being an area with lots of competition ... which makes sense since the cost of switching is low.
- notahacker 16y ago
  Outside the US we have the option of subsidised phones or pay-as-you go deals depending on what you actually need.
- yason 16y ago
  If most phones are unlocked the market will certainly come up with competitive prices for both phones and carrier deals. That's how it basically works in the non-US systems. As long as the phone is bundled with, say, a 24 month service you'll definitely end up paying more and the nominal "plain phone prices" can be arbitrary. You don't get $500 for "free" as the real price of the phone would be much lower. Or, alternatively, the monthly charge would be much lower without the phone if there was competition there. It's just that contracts are too lucrative for telcos and they all know it, and nobody wants to start the competition.

by Splines 16y ago

I was wondering about that. Why bother buying an unlocked phone if your payments don't change? I mean, you have the freedom to change carriers at will, but I wonder how often that's exercised.

kenjackson 16y ago

This is the fundamental win with the current US system. If every phone existed as an unlocked/unsubsidsidized variant -- those would still hardly move. Why pay $500 for a phone, when you can get the same phone for $199, but you simply have a two year contract. I've been with the same carrier for 10 years, despite having the option to leave at many points in time. In many regards, I think our subsidized mobile phone system trumps the systems outside of the US.

grhino 16y ago
A win from whose perspective?
- kenjackson 16y ago
  The users. I get the carriers to give me $300 for something I plan on doing anyways (using their service for the next two years). It would be like Comcast subsidizing my purchase of a TV if I kept Comcast for two years. I'd jumpt on that deal now (assuming the subsidy was $300+ dollars), because I anticipate keeping Comcast for two years (even with the coming internet TV threats). And certainly for the past 10 years, it would have been an even bigger no brainer.
  - bad_user 16y ago
    That's bullshit ... what you get is lock-in for 2 years, a period of time in which they can fuck with you however they want, all for $300 ... which you pay back one way or another, especially when you've got a functional oligopoly: i.e. SMS messages are 4 times more expensive than receiving data from space. Yes I've been with the same carrier for 6 years, but I'm using a pre-paid plan, and I get better deals than customers with contracts. I can also scale down my monthly payments ... i.e. I'm only paying for included 3G traffic when I need it.
    - kenjackson 16y ago
      That's odd. I'm with Sprint. On a legacy plan from 2002. I get unlimited data for $10/month. They've never screwed me over, AFAIK. And, yes all this for $300. The choice you've made is to presumably pay $500 or more for the phone, and then maybe marginally cheaper monthly fees. Although I'd argue that my monthly fees are quite likely cheaper than yours, although its in a plan you can no longer get. But Sprint still grandfathered contracted customers with it. And last time I checked, all of the major cell phone carriers allow you to buy the phone w/o a contract. So feel free to spend the $500 for a phone. No one is stopping you.
      - bad_user 16y ago
        > So feel free to spend the $500 for a phone. No one is stopping you. Actually I'm not spending $500 for a phone who's battery only lasts for a single day and has signal issues ... most smartphones are like that, I know ... unfortunately for all their capabilities, are kind of uncomfortable for making phone calls. I do have an iPhone 3GS, but I consider it a handheld with 3G connectivity that happens to be able to make phone calls. I'm paying 9 euros for a data plan with 1 GB per month / ~ 7.2 Mbps (the actual speed I'm getting, the plan is for ~11 Mbps). Of course, I live in Europe where prepaid plans are much more popular, being an area with lots of competition ... which makes sense since the cost of switching is low.
notahacker 16y ago
Outside the US we have the option of subsidised phones or pay-as-you go deals depending on what you actually need.
yason 16y ago
If most phones are unlocked the market will certainly come up with competitive prices for both phones and carrier deals. That's how it basically works in the non-US systems. As long as the phone is bundled with, say, a 24 month service you'll definitely end up paying more and the nominal "plain phone prices" can be arbitrary. You don't get $500 for "free" as the real price of the phone would be much lower. Or, alternatively, the monthly charge would be much lower without the phone if there was competition there. It's just that contracts are too lucrative for telcos and they all know it, and nobody wants to start the competition.