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Why carriers don't have unsubsidized pricing

rehpyc

Android Enthusiast
I may be wrong, but prices for plans are so high because they are subsidizing the cost of the phone, right? Why is it that carriers don't have lower pricing for those that don't purchase phones at the subsidized price? They could still lock someone in for a specified amount of time via a contract, meaning they'd for sure get that person's money. Otherwise, for those that don't have unlimited data, what keeps someone from switching around to new carriers each time. When good phones are often made available to new customers on Amazon for a penny, I've considered going two years with one carrier and then switching to another while purchasing a phone for a penny.
 
I may be wrong, but prices for plans are so high because they are subsidizing the cost of the phone, right? Why is it that carriers don't have lower pricing for those that don't purchase phones at the subsidized price? They could still lock someone in for a specified amount of time via a contract, meaning they'd for sure get that person's money. Otherwise, for those that don't have unlimited data, what keeps someone from switching around to new carriers each time. When good phones are often made available to new customers on Amazon for a penny, I've considered going two years with one carrier and then switching to another while purchasing a phone for a penny.

If you have more than one carrier that has good service where you use your phone, than switching carriers every couple years to get a new phone for a penny is a good option for you. For those customers that only have one carrier with decent service in thier area, well then the switching carriers every couple years is not such a good option. :smokingsomb:
 
With Google finally getting into providing internet service, hopefully they then move towards cell service with voip. $350 for a Nexus that uses your internet data plan? Can't wait.
 
With Google finally getting into providing internet service, hopefully they then move towards cell service with voip. $350 for a Nexus that uses your internet data plan? Can't wait.

I have no idea why it hasn't been done earlier. We have mobile connections with enough bandwidth per user to stream HD video. I think that a voice call would pale in comparison. Plus I would think that it would save the carriers some money not having to buy specialized voice equipment so that's an incentive for them.
 
I have no idea why it hasn't been done earlier. We have mobile connections with enough bandwidth per user to stream HD video. I think that a voice call would pale in comparison. Plus I would think that it would save the carriers some money not having to buy specialized voice equipment so that's an incentive for them.

The carrier would loose money not charging for minutes that you don't use.
 
Well per AT&T and Verizon, the carriers are going away from charging for minutes anyways. Pretty soon it will all be data.
 
I may be wrong, but prices for plans are so high because they are subsidizing the cost of the phone, right? Why is it that carriers don't have lower pricing for those that don't purchase phones at the subsidized price?

Carriers don't offer lower service pricing for non-subsidized devices because: 1) they would lose more money on existing customers than they would gain from newly-attracted customers, and 2) doing so would make existing customers painfully aware that despite their subsidized device pricing, they are in fact paying through the nose for their devices.

If you want service pricing that's appropriate for non-subsidized devices, you need to buy a device outright and get service from an MVNO. That's what I did with my unlocked Galaxy Nexus & Straight Talk, and I couldn't be happier.
 
Well per AT&T and Verizon, the carriers are going away from charging for minutes anyways. Pretty soon it will all be data.


On the nosey. Everything is going to be data soon, and the big 3 know it. I have a suspicion that LTE was designed with that in mind. The days of counting minutes and messages are over.
 
On the nosey. Everything is going to be data soon, and the big 3 know it. I have a suspicion that LTE was designed with that in mind. The days of counting minutes and messages are over.

You will still get charged for it though. It's never going to be free.
 
Never said it was going to be free. The marketplace is switching from unlimited data for a flat fee to unlimited calls/texts for a flat fee. Data is now becoming the premium service where user overages will bring increased revenue for providers. Think back to 5-7 years ago when providers were collecting ridiculous amounts for people exceeding their minute/text allowance. That practice is now going to the data side. Watch what happens over the next 2-3 years. Data is about to become the new cash cow for the mobile industry.
 
Never said it was going to be free. The marketplace is switching from unlimited data for a flat fee to unlimited calls/texts for a flat fee. Data is now becoming the premium service where user overages will bring increased revenue for providers. Think back to 5-7 years ago when providers were collecting ridiculous amounts for people exceeding their minute/text allowance. That practice is now going to the data side. Watch what happens over the next 2-3 years. Data is about to become the new cash cow for the mobile industry.

I agree. Remember how you used to always hear about that one teenager that ran up their parent's bill to a few grand because they went way over their texting/minutes limits? Now your going to start seeing the same thing with data with HD video, cloud services, and such on mobiles becoming more popular. Phones are far more data centered now with phone calls and text messaging just sort of a side feature (granted, how many more features can you possibly get with phone calls and text messaging?).
 
Also, think about all the services available that allow people to make calls and/or send messages through the data connection on the phone. Lots of folks used those to avoid overage charges, but that's probably gonna go away as well. After all, VOIP is only great when you're not paying extra for it.
 
Good point, although VOIP is doing pretty well in the landline replacement business. For now.
 
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