With T-Mobile trailblazing, Verizon CEO sees the end of phone subsidies as a 'great thing'

13. metalpoet (unregistered) posted on 08 Jan 2013, 16:38 2 0

I hate spending $200-$300 plus the stupid upgrade fee of $30 for a phone so why would I want to spend $400-$600 for a phone? Plus my company will simply pull out of the mobile market altogether because very few Utahns are willing to spend even $200 for the latest and greatest devices, bunch of f***ing couponers! :( I hope they allow people the option to do one plan or the other with the phone cost.

24. gwuhua1984 posted on 08 Jan 2013, 18:48 2 0

I think once the subsidies ends, the plan price and phone prices will drop. Carriers will battle between themselves on network and pricing. Phone manufacturers will battle themselves on specs and pricing of their phones. For each market, the 2 things for each of them are what matters most to consumers.

26. Imbatman posted on 08 Jan 2013, 19:59 1 0

you understand that there are countless countries that dont subsudized devices. Hell, Korea just recently Fined 3 of its companies for doing so in their home country. So why would the prices of devices drop if just the us stops subsudizing? People wont stop buying phones, they will still do so and the profit will just keep rising.

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27. CRICKETownz posted on 08 Jan 2013, 21:51 3 0

the only problem w/that theory is that when you have large group of people accustomed to what is considered "reasonable pricing" on equipment now being exposed to $400-$500 pricing there is going to be instant backlash. the mindset of people in the US is i want the best for the least amount of money. the amount of people coming asking for a free phone grows daily esp. when you have outlets like Sam's Club, Best Buy Mobile, Target etc. offering phones for $0.97...that won't go over well. it may be normal outside of the states but to take away the subsidy is going to mark the rise of the basic phone & the decline of smart phones.

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37. metalpoet (unregistered) posted on 10 Jan 2013, 19:32 0 0

CRICKETOWNZ: You have a point buddy, I know for a fact that I'll be out of a job as well as my employees if they start jacking up the prices of phones because ppl will simply go on ebay, newegg, and amazon.com to buy phones instead of coming in to brick and morter stores, thus eliminating hundreds of thousands of jobs in the wireless industry.

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6. NexusKoolaid posted on 08 Jan 2013, 15:45 2 0

Amen. I haven't had a subsidized phone since the Nexus One. No carrier bloatware. No OS modifications or any bugs they happen to introduce. And yes, faster updates.

8. gwuhua1984 posted on 08 Jan 2013, 15:57 4 1

Perhaps it'll also bring an end to carrier exclusive devices.

15. metalpoet (unregistered) posted on 08 Jan 2013, 16:40 1 1

Now that i can get on board! im sick of Verizon being the ONLY thing that works in my area and they have the ugliest devices!

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31. Mittal posted on 09 Jan 2013, 00:09 1 0

But i have a question...
Dont the consumers in the US have a choice to buy an unlocked phone off contract and choose any carrier and a cheap plan ?

33. TheMan posted on 09 Jan 2013, 04:49 0 0

Americans can buy a phone at full price, thereby avoiding a contract BUT: 1. This option, while available online is rarely mentioned at any point of sale, advertisement, etc.; 2. Monthly rates for the unsubsidized buy are typically the same as the subsidized one; 3 The carriers themselves are the primary source of phones and often the point of differentiation, branded and locked for use on that carrier.

Many (most?) Americans wouldn't know where to turn for an unlocked options, which may not work on all carriers.

35. Mittal posted on 10 Jan 2013, 00:48 0 0

Thanks for the reply
"Monthly rates for the unsubsidized buy are typically the same as the subsidized one" If thats true then thats total bulls**t, almost extortion!
Yes and as u mentioned, many international versions may not be compatible with some 3G/4G network of some carrier which again puts the consumer in a confused state....
These seem to be bad practices being followed in the US

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36. TheMan posted on 10 Jan 2013, 07:06 0 0

No argument here. T-Mobile US first tried to price service 3-4 years ago at a lower rate for full-price mobile purchases, but the oligopoly of Verizon-AT&T-Sprint have yet to adopt.

Carrier control of handsets helps contribute to the U.S. having the highest service rates in the world (Canada's #2). I don't see that changing any time soon, sad to say.

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18. phoenixpr posted on 08 Jan 2013, 16:55 0 3

Agree! or I believe people will be willing to purchase the phone full price and not have it subsidies. If it's a phone that can be taken on to any carrier. But to pay full price and then hate the carrier. Then trying to regain your money back on eCrap (eBay) is a waste of my time. I would gladly pay $400 -$800. It's like buy a $4000 TV in NYC, then moving to California and TV isn't compatible with the cable company in the west coast. Make a phone that works on all carrier. Have an app that on the phone that I can chose what ver carrier to activate. We can put a man on the moon, we can do this.

16. Larry_ThaGr81 posted on 08 Jan 2013, 16:43 2 1

That still will hurt their profits because all the consumers out their that don't have good credit won't be able to buy smartphones and tablets with monthly installments.

14. Larry_ThaGr81 posted on 08 Jan 2013, 16:40 1 0

If that's suppose to be a threat from Verizon CEO that they would like to see subsidies go, then they are shooting themselves in the foot and really opening up the door for people to jump ship as soon as Verizon does something that puts consumers at a disadvantage, which is becoming a common theme for them.

28. CRICKETownz posted on 08 Jan 2013, 22:06 0 0

actually carriers would much rather you buy the phones outright instead of taking the subsidized pricing b/c that is straight revenue that they don't have to recoup from losing money on selling you a $650 for $200. if you're paying what they are paying for the phones (which they don't have to worry about making up the cost since you paid it) plus getting the monthly service from you that is a carrier's fantasy. it takes most carriers months of you paying for a service to start making the money up that they lost so if you just buy the phone that means the company starts making money from day one. your theory is backwards. the only thing there is a greater risk factor involved b/c that customer isn't under contract so the door is always open for them to leave.

19. Larry_ThaGr81 posted on 08 Jan 2013, 17:05 1 0

Hell I'd pay full price with the understanding that I can take my phone to any carrier, but again not everyone has the means to be able to do that.

32. Mittal posted on 09 Jan 2013, 00:18 0 0

i beleive so too buddy !!
Here in India, That is exactly the way it happens. Any GSM device runs on all carriers and we r not bound by any contracts. Its swell!!

25. gwuhua1984 posted on 08 Jan 2013, 18:54 0 0

When the carriers drop subsidies, the main thing that entices the consumers right now: phones, will no longer be reason to attract consumers. It'll come down to network speed and pricing. T-Mo's 2 million iPhone users will be the best example. If one carrier start doing so and benefit from it... the rest will follow. That's just how it is.

29. CRICKETownz posted on 08 Jan 2013, 22:30 0 0

call me crazy but being able to use my phone when i need to...also having ridiculously fast internet is not necessarily zero incentive. this article is completely mind-boggling...here you have people that are constantly griping about high bills - Verizon charges too much, yadda yadda yadda...but yet these same people are going to be okay w/paying $500 for a phone? bs. watch these same people gripe about the unsubsidized pricing if this becomes a reality. you have a family of 5...each paying $400-500 a phone? please. you want a lower bill? fine, but remember you asked for it so don't complain when the other facets of your service change (possibly to the detriment of your pocketbook) as well. remember, companies are gonna do what's profitable to the company first & foremost. if the customer benefits that's a secondary thought and that's every company under the sun...