Verizon to raise ETF?
0. phoneArena posted on 03 Nov 2009, 12:03
In a bid to prevent getting ripped off on BOGO deals, Big Red is said to be considering raising the ETF for high end phones to $350...
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20. *HOVA* posted on 03 Nov 2009, 16:20 0 0
Wrong, VZW has a large hand in the pricing. Why do you think the original iPhone with ATT was $600 when it released? It's because AT&T wasn't offering any subsidising on the phone at all. With the introduction of the 3G they did, hence carrier plays a role in the price...
26. remixfa posted on 03 Nov 2009, 20:32 0 0
hova, the difference is that att ATE the 400 difference in the 600 to 200 pricing in order to attract more people and make it up in the long term w/ the contract. I totally understand the meaning and agree with the logic of this move, but with big 4 carriers like Tmobile going to much cheaper plans and no contracts, its probably not the best time for such a move. It could force a lot of teetering customers out the door. granted VZW coverage is the best, but at more than double the monthly cost for UNL, is it worth that much more?
27. *HOVA* posted on 03 Nov 2009, 20:45 0 0
Honestly I think all carriers will lean towards pretty much all prepaid, but it's gonna take a long time. You might be right, and in the US today, the almighty dollar is swinging a big hammer on many familys. They may not even like the move, just have to. But at the same time, these people that are really focussed on the dollar are probably not considering high-end phones like what this may effect. Hard to say considering this hasn't been made official yet, or any details given, but I deffinetly see where you're coming from.
34. jundibasam posted on 04 Nov 2009, 07:35 0 0
that isn't entirely accurate dude. If that were the case, tell my why Sprint says the HTC Touch Pro 2 is $579.99 full retail but VZW lists the exact same device at $479.99 full retail? Thats a $100 difference on same exact phone that essentially came out on 2 different carriers at nearly the same time, and I'm pretty sure VZW ended up with less models they purchased considering they're always out of stock. Manufacturer ultimately sets the price so they can be sure to make a profit, but the carriers have A LOT of influence in the development of the device that affects the price.
14. rwrife posted on 03 Nov 2009, 14:16 0 0
If they're going to do this, which oddly enough I'm ok with, I wish they would either remove the requirement of a having a data plan on certain phones or just include in the month cost of the service and not make it an "add-on"....so basically just charge everybody ~$20/mo more and give everyone a data plan.
30. YouLostTheGame posted on 03 Nov 2009, 22:14 0 0
Have you ever heard of supply vs. demand? If you think ATTs network is "clogged" due to traffic, can you even fathom how much strain that would put on a network?
17. rath posted on 03 Nov 2009, 15:04 0 0
Verizon wanted keep new customers for 2 years in the Verizon cage by raising ETF to $350 while other carriers is $250.
21. Fanboys Suck posted on 03 Nov 2009, 16:52 0 0
Intelligent... right there! However, if I buy a phone from Wal-Mart, and my buddy Joe goes into the retail store... I pay less... what about the ETF then? I think you are headed in the right direction though.
22. *HOVA* posted on 03 Nov 2009, 17:33 0 0
It would also require a seperate ETF for EVERY phone, becuase the retail pricing is generally different for nearly every phone. I think that would create more mis-information from agents and more of a headache then it's worth. This seems to be a good start. Make a smartphone ETF and a standard phone ETF, similar to how some insurance companies have gone to tiered deductibles on insurance claims.
25. dandirk (unregistered) posted on 03 Nov 2009, 18:46 0 0
In a way I wish they just got rid of subsidies... I think they work in the cell carrier's favor, and even more in the favor of manufacturer's. Someone mentioned it earlier... prices don't go down (well not as fast as normal products). It's all because of the subsidies. Wonder why a ipod touch cost $300 and an iphone $700 (retail, both 32gb)? I don't know the business but it seams far fetched that a cell chip and camera would more then double the asking price. Prices on smartphones seam artificially high to me and that is all because of subsidies, it wouldn't surprise me if verizon and others get the devices for well below "retail" prices everyone quotes. The only thing that keeps retail price is apple producst and the WII (except recently) just due to demand. Manufacturer's pretty much don't have to compete for price in the US due to subsidies, carriers lock people in for 2 years due to ETF, locked phones etc. All the while keeping prices inflated or at least appear so. If locked phones were illegal, and at minimum phones were GSM or CDMA and could go to any service provider (that provides compatible CDMA/GSM service), phones would become cheaper and carriers would have to compete more on service and price. That is just my uninformed opinion no insider info, just perspective as a customer.
28. *HOVA* posted on 03 Nov 2009, 20:48 0 0
I agree completly. I'm not sure, but it may be that the wireless market is so much more competitive then say the UMP market as in your reference to the iPhone and iTouch. Maybe they need to pour more money into research and new technology with wireless then UMP, I dunno. But it doesn't seem to make much sense.
31. YouLostTheGame posted on 03 Nov 2009, 22:22 0 0
I guarantee that carriers don't pay the "retail" pricing they quote. It seems to me the situation is just like any other product. Company A makes a product and sells it to Company B; then Company B turns around and marks up the price to sell to consumers. Retail pricing is all a ploy to get people into contracts. I personally don't have an issue with VZWs possible decision to do this, as I've been in perpetual contract with them for abotu 10 years now, and have been more than happy. And if for whatever reason I end up HAVING to leave, paying a fee is a small price for wireless satisfaction IMO.
32. dandirk (unregistered) posted on 03 Nov 2009, 23:11 0 0
The difference is that due to contracts, ETF, Locked phones cellular companies and manufacturers are in essence price fixing the devices. Most consumers are pretty much forced to buy "expensive" phones from carriers which tell you they are giving you a discount based on "retail" price. Old trick I know, but manufacturers have NO incentive to sell and compete in the open market, which would lower the price further then the low price cell providers will pay. Cell providers get 2 year contracts Manufacturers get a higher price for their devices due to not having to compete as much (just will the carriers, not all the customers).
35. Templer16 posted on 04 Nov 2009, 08:07 0 0
Actually it depends alot on the device. There are many phones where carries (atleast vzw) pay within a stones throw of the posted retail price. Mostly PDA are the phones that are the most acturate when in comes to true retail pricing. That 500 winmo phone you see there, ya the carrier bought that for like 480. Figure in transpertation, marketing and insurance on a unit base you are looking right at the 500 dollar mark
36. dbb10001 posted on 13 Nov 2009, 10:26 0 0
In responding, I wanted to address the Verizon subscribers who would be affected by this increase of ETF because they are considering changing to another provider due to a high Verizon plan cost. We tend to think of wireless costs as fixed, but you can tinker with your current Verizon Wireless plan to optimize its features to best suit your usage and often generate significant savings in the process. I know this firsthand because I work in the consumer advocacy division of the company Validas, where we electronically audit and subsequently reduce the average cell bill by 22 percent through our website,http://www.fixmycellbill.com (and I'll add that 22 percent equates to over $450 per year for the average user). Put simply, Validas guards against frivolous and unnecessary charges that over-inflate a cell bill. You can find out for free if fixmycellbill.com can modify your plan to better suit your individual needs by going to the website. For more info, check out Validas in the national news media, most recently on Fox News athttp://www.myfoxtampabay.com/dpp/consumer/conlaw/lower_cell_phone_bills_072409 . Good luck to everyone reading on cutting the wireless costs, especially in light of this unforgiving economy. Dylan Consumer Advocacy, fixmycellbill.com
