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Karl Bode
News Guy
join:2000-03-02
Host:
Road Runner
PC gaming GAMES
PC gaming Tech
| reply to tmh
Re: Already possible
quote:
They didn't mention that most of the time the provider subsidizes the cost of the phone. In return, they'd like you to stay on their service for a while.
Actually, he specifically addresses this: quote:
The carriers defend these restrictions partly by pointing out that they subsidize the cost of the phones in order to get you to use their networks. That’s also, they say, why they require contracts and charge early-termination fees. Without the subsidies, they say, that $99 phone might be $299, so it’s only fair to keep you from fleeing their networks, at least too quickly.
But this whole cellphone subsidy game is an archaic remnant of the days when mobile phones were costly novelties. Today, subsidies are a trap for consumers. If subsidies were removed, along with the restrictions that flow from them, the market would quickly produce cheap phones, just as it has produced cheap, unsubsidized versions of every other digital product, from $399 computers to $79 iPods.
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Jason Levine
Premium
join:2001-07-13
Albany, NY | Got it in just a minute before me, Karl.  | |
tmh
@comcast.net
| reply to Karl Bode
That's only partially true. The local market is only a small portion of the global market for GSM phones. Most countries in Europe and many in Asia mandate equipment portability, yet prices are nowhere as cheap as the article suggests.
Instead, what has resulted is a truly extensive variety of equipment available, many with features considered advanced by the local (US) market. Since equipment is not subsidized, handset vendors have more incentive to bring out more feature rich phones with an eye toward making a profit, rather than selling a limited range to the provider.
For example, M1 Singapore offers the "entry-level" Ericsson T250i, with camera, mp3 player, FM receiver, WAP browser, and other features. Deal price is around US$180 (S$300). Not exactly cheap, and definitely not the sub-$100 product the article alludes to.
A high-end device like the Ericsson T650i with camera, video, mp3, 3G, html browser, bluetooth and several other things goes for about US$450 (S$888).
If you sign up with a contract, you can get them for $0 (free) and around US$160 respectively however. You can still take that device to another carrier at any time, but contract termination fees apply. | |
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