I will be buying an unsubsidized Factory unlocked iPhone 4. (Without paying eBay markup!) My current jailbroken 1st gen iPhone is entirely prepaid with $0.11/min calling and $0.10 for sending a text and $0.05 to receive, but I will switch to an Unlimited calling and text plan for $50/month. Mobile bandwidth is through WiFi through a Sprint 4G device, which will double as my home Internet.
It's Time To Stop Subsidising Mobile Phones
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Re: It's Time To Stop Subsidising Mobile Phones
#12In the USA, isn't the real issue that you can indeed buy your phone unsubsidized, it's just a hassle (or impossible) to get your new phone's fancy features working on a carrier? Why would someone want to pay $700 for an iphone/android and then have half of the features not work, because they can't get a compatible plan?
Buy a mobile broadband device, and things work well. You don't get GPS, but the WiFi location is pretty darn good.
Re: It's Time To Stop Subsidising Mobile Phones
#13I will be buying an unsubsidized Factory unlocked iPhone 4. (Without paying eBay markup!) My current jailbroken 1st gen iPhone is entirely prepaid with $0.11/min calling and $0.10 for sending a text and $0.05 to receive, but I will switch to an Unlimited calling and text plan for $50/month. Mobile bandwidth is through WiFi through a Sprint 4G device, which will double as my home Internet.
Sprint 4G device, which will double as my home Internet
Hope you have a backup plan. Since the Evo came out, Sprint's 4G is significantly slower than their 3G, at least in the places where I use it.
Re: It's Time To Stop Subsidising Mobile Phones
#14I look at it as a pay now or pay later sort of situation. The charge for my iPhone was low enough that I was willing to get it for $200. I wasn't willing to get it for $800. I love my iPhone but not $800 worth of love. I might pay that back over two years but I'd rather do that than put down $800 for a phone. I'm not even sure that I will pay it back because I am getting service in exchange for staying with AT&T for…
There seems to be some confusion on this in the linked comments too, even though the very first commenter hit the nail on the head, but: You don't need to pay for anything, including phones, up front any longer. Credit is (too) easily available and basically guaranteed to be cheaper and more flexible if you unbundle it from the actual purchase. These disguised loans should really only be attractive to people with low…
Correct, but convenience is a strong motivating factor -- why else would people pay 20-30% interest just to take their own money out of an ATM? Most people just want to get a phone with service, and don't really want to mess around with the specifics.
Re: It's Time To Stop Subsidising Mobile Phones
#15T-Mobile does this. If you buy a N1 at full price, you get a $20/month discount on your service plan; making the total cost of the phone over 24 months the $600 that you pay initially. If you buy it subsidized for $179, then you are locked into a 24 month contract with ETF, and you end up paying $659 for the phone. (Not a terrible interest rate, but you're not "saving money" as you may think.)
Re: It's Time To Stop Subsidising Mobile Phones
#16I look at it as a pay now or pay later sort of situation. The charge for my iPhone was low enough that I was willing to get it for $200. I wasn't willing to get it for $800. I love my iPhone but not $800 worth of love. I might pay that back over two years but I'd rather do that than put down $800 for a phone. I'm not even sure that I will pay it back because I am getting service in exchange for staying with AT&T for…
There seems to be some confusion on this in the linked comments too, even though the very first commenter hit the nail on the head, but: You don't need to pay for anything, including phones, up front any longer. Credit is (too) easily available and basically guaranteed to be cheaper and more flexible if you unbundle it from the actual purchase. These disguised loans should really only be attractive to people with low…
I was looking at some phones the other day and overheard a customer who agreed to basically pay 15$ more a month for the next two years, just so that they could avoid having to pay $120 up front. That sort of thinking is strange (unless you are a cell phone carrier, in which case it is awesome).
Re: It's Time To Stop Subsidising Mobile Phones
#17I will be buying an unsubsidized Factory unlocked iPhone 4. (Without paying eBay markup!) My current jailbroken 1st gen iPhone is entirely prepaid with $0.11/min calling and $0.10 for sending a text and $0.05 to receive, but I will switch to an Unlimited calling and text plan for $50/month. Mobile bandwidth is through WiFi through a Sprint 4G device, which will double as my home Internet.
Sprint 4G device, which will double as my home Internet Hope you have a backup plan. Since the Evo came out, Sprint's 4G is significantly slower than their 3G, at least in the places where I use it.
Good to know. I've already been vetting the device. At home, 4G is the same speed as 3G, but with unlimited use.
Re: It's Time To Stop Subsidising Mobile Phones
#18Earlier quoted context omitted.
There seems to be some confusion on this in the linked comments too, even though the very first commenter hit the nail on the head, but: You don't need to pay for anything, including phones, up front any longer. Credit is (too) easily available and basically guaranteed to be cheaper and more flexible if you unbundle it from the actual purchase. These disguised loans should really only be attractive to people with low…
I was looking at some phones the other day and overheard a customer who agreed to basically pay 15$ more a month for the next two years, just so that they could avoid having to pay $120 up front. That sort of thinking is strange (unless you are a cell phone carrier, in which case it is awesome).
So the answer is to extend your credit elsewhere and third the overall costs - which is fine if you have access to an easily extended line of credit.
It's not always going to be cheaper for everyone to pay up front but on the whole it does seem better.
Re: It's Time To Stop Subsidising Mobile Phones
#19The issue isn't subsidies, but the fact that almost every carrier in the US and Canada refuses to lower your monthly bill when the subsidy has been paid off. Until that changes, the only sensible response is to get a new subsidized phone as often as your contract allows.
Re: It's Time To Stop Subsidising Mobile Phones
#20Earlier quoted context omitted.
I was looking at some phones the other day and overheard a customer who agreed to basically pay 15$ more a month for the next two years, just so that they could avoid having to pay $120 up front. That sort of thinking is strange (unless you are a cell phone carrier, in which case it is awesome).
So the answer is to extend your credit elsewhere and third the overall costs - which is fine if you have access to an easily extended line of credit. It's not always going to be cheaper for everyone to pay up front but on the whole it does seem better.
If they are so poor that they absolutely cannot scrape together $120 then they really should be buying a $20-30 second hand phone and a pay-as-you-go plan. Committing to $30+ a month in those sort of financial situations is just a really bad idea.