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One of our networks in Switzerland (Sunrise) has a really innovative subscription model: They give you a cheapish subscription that's completely independent of

One of our networks in Switzerland (Sunrise) has a really innovative subscription model: They give you a cheapish subscription that's completely independent of the phone (~25-40$/m depending on whether you need unlimited free calls etc.) and which you can cancel/modify with every month. Then they offer you a leasing contract for your phone where you choose yourself how many monthly payments you'd like to make (payment per month inverse proportionate to the contract duration). At the end you can have about the same total cost of ownership as before, but you're much more flexible. The leasing contract amounts to ~5-8% interest on the upfront price for the whole duration and it's not dependent on how you set it up. So, I wonder how many people will opt to just buy it up front now, when the subsidy isn't hidden anymore. It could also have a negative impact because some people will find it too complicated, however the widely trusted consumer review and comparison sites all give it a big thumbs up, so I think many will figure out why it's better.

colechristensen 12y ago
T-Mobile in the US is pretty similar. The service plan is no-contract and can be changed every month (perhaps intra-month, I have done some dynamic changes and it seems to take effect in the middle of billing cycles). The hardware payment is separate with a fixed no-interest cost spread over 2 years. The hardware is the same cost if you buy it up front or spread payments out over the 2 year period.
bambax 12y ago
"Free Mobile" in France works the same way; but I don't know the proportion of iPhones on their network.
exprL 12y ago
Finnish telecoms have mostly abandoned tying the phone to a mobile plan, just a few years after they were given that right by law. My personal guess as to why, is that they want to offer longer financing plans than the maximum of 24 months allowed for carrier-locked phones – with plans up to 36 months common. Apparently the seller of an expensive phone like iPhone gets a decent chunk of money at market prices, because it's common for carriers not to take any interest with their financing plans – i.e. the phones costs the same bought upfront as they do over 36 monthly payments. The phone itself is in no way locked to any specific network.

colechristensen 12y ago

T-Mobile in the US is pretty similar. The service plan is no-contract and can be changed every month (perhaps intra-month, I have done some dynamic changes and it seems to take effect in the middle of billing cycles). The hardware payment is separate with a fixed no-interest cost spread over 2 years. The hardware is the same cost if you buy it up front or spread payments out over the 2 year period.

bambax 12y ago

"Free Mobile" in France works the same way; but I don't know the proportion of iPhones on their network.

exprL 12y ago

Finnish telecoms have mostly abandoned tying the phone to a mobile plan, just a few years after they were given that right by law. My personal guess as to why, is that they want to offer longer financing plans than the maximum of 24 months allowed for carrier-locked phones – with plans up to 36 months common. Apparently the seller of an expensive phone like iPhone gets a decent chunk of money at market prices, because it's common for carriers not to take any interest with their financing plans – i.e. the phones costs the same bought upfront as they do over 36 monthly payments. The phone itself is in no way locked to any specific network.