Is Verizon's Upgrade Change The Next Step Towards an End to Phone Subsidies?

[androidluvr2]

I think it is, but the problem is that I don't see our wireless services prices going down.

How do you see this all playing out in the future?

 

[AustinTech]

I don't know if the big 2, at&t and Verizon, will ever completely do away with subsidies. But I agree that this is a small step in that direction.

Personally I'd be completely fine with eliminating subsidies as long as there is an actual savings in monthly plans. Like you, I just don't see the cost of plans decreasing though so it seems to me that carriers could just be looking to grab more money. Which would suck. And make me more likely to just get a dumb phone and forget about this smartphone stuff. I love my Note 2 + LTE access, but I not as much as I love my self-respect.

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[eRod v1.0]

There is an article/rumor stating Verizon is going to allow financing of smartphones for up to a year. Wouldn't this let somebody buy a phone off contract? If so, why does this new upgrade time frame matter?

Sent from my SCH-I605 using Tapatalk 2

 

[androidluvr2]

Like you, I just don't see the cost of plans decreasing though so it seems to me that carriers could just be looking to grab more money.

I wonder if this money grab is something they are doing because they foresee more competition in the future as T-Mobile and Sprint roll out their LTE networks?

Then when we move to VoLTE, which is GSM based technology, phones will be more portable to other carriers, particularly with having Google releasing unlocked phones in the mix. If so, it could mean more competition and that will help to keep prices down?

 

[frsimpson]

I think that it a way to keep the price of the new subsidized phone below the magic $199 mark. Of course by lengthening the payback period means that you end up paying Verizon 3 time the price of the phone in the first place.

Sent from my Transformer Prime TF201 using Android Central Forums

 

[androidluvr2]

There is an article/rumor stating Verizon is going to allow financing of smartphones for up to a year. Wouldn't this let somebody buy a phone off contract?

If you finance the phone, they would have to keep you on contract until you pay it off.

 

[eRod v1.0]

If you finance the phone, they would have to keep you on contract until you pay it off.

Yes sir, but my understanding is the length of the financing is up to a year.

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[Lodingi]

Cell companies, Verizon in particular, are behaving more & more like mini-governments. They've maxed out what they can charge for their services, so now they're focusing on what they can take away from subscribers to boost their bottom line.

 

[Jerry Hildenbrand]

Cell companies, Verizon in particular, are behaving more & more like mini-governments. They've maxed out what they can charge for their services, so now they're focusing on what they can take away from subscribers to boost their bottom line.

This.

All these companies have one goal - removing money from your pocket and putting it in theirs. Verizon is very good at it, but it goes for all carriers. They will push until they see negative results, then pull back a little.

 

[pmjj]

I could not have said this any better!

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[androidluvr2]

All these companies have one goal - removing money from your pocket and putting it in theirs. Verizon is very good at it, but it goes for all carriers. They will push until they see negative results, then pull back a little.

All companies have that goal. The difference here is the public utility aspect AND that this particular public utility is licensing a portion of the electromagnetic spectrum AND that they have an oligopoly.

When the federal government provides cell phone service to low income people, you know that cell phone service is no longer a luxury, but a public utility.

There is one solution and only one solution here and that is regulation.

 

[Droid3r]

Verizon have 18 wheeler trucks filled with millions parked for blocks in capitol hill.
LOBBYING their way forward.
iSheep... iSheep... Meowww that's Apple VZW GSIII

 

[dpham00]

If you finance the phone, they would have to keep you on contract until you pay it off.

No they don't. It would probably operate similar to the device installment program for tablets


' Do I continue to pay my installment payment monthly even if I cancel my service?

Yes, if you voluntarily disconnect your wireless service, you?ll continue to be billed monthly until your balance is paid in full."

http://support.verizonwireless.com/faqs/Features and Optional Services/device-installment-plan.html

Sent from my Verizon Samsung Galaxy Note II

 

[dpham00]

I don't know if the big 2, at&t and Verizon, will ever completely do away with subsidies. But I agree that this is a small step in that direction.

Personally I'd be completely fine with eliminating subsidies as long as there is an actual savings in monthly plans. Like you, I just don't see the cost of plans decreasing though so it seems to me that carriers could just be looking to grab more money. Which would suck. And make me more likely to just get a dumb phone and forget about this smartphone stuff. I love my Note 2 + LTE access, but I not as much as I love my self-respect.

Sent from my GT-P7510 using Android Central Forums

I pay $43 for my line with unlimited unthrottled 4GLTE, and $21 for my dumb phone lines. I bought a note 2 on one of my dumb phone lines for $37. A new note 2 runs $700. Even factoring the upgrade fee, the subsidy on my dumb phone line is $26 a month in this case, meaning, based on the carrier subsidy and non subsidized price, Verizon is losing $5 a month in that line. Now, it isn't a real loss since Verizon didn't actually pay $700 for the phone.

I am paying $150 for 5 lines of service, 2 smartphones, 3 dumb phones. If the carrier subsidy was worth $26 per line the subsidy would be $130, meaning that the in subsidized cost would have to be $20 for 5 lines of service total. That isn't going to happen ever. Even if you were to take a more modest $15 per line subsidy, the would be $75 in subsidies for my 5 lines and $75 for 5 lines of service. Which isn't going to happen as tmo true unlimited unthrottled 4GLTE plan is $70 for one line no subsidy.

Really, the family plan is the best for me, I don't see any unsubsidized plan being worth it for me.

Sent from my Verizon Samsung Galaxy Note II

 

[androidluvr2]

I pay $43 for my line with unlimited unthrottled 4GLTE, and $21 for my dumb phone lines. I bought a note 2 on one of my dumb phone lines for $37. A new note 2 runs $700. Even factoring the upgrade fee, the subsidy on my dumb phone line is $26 a month in this case, meaning, based on the carrier subsidy and non subsidized price, Verizon is losing $5 a month in that line. Now, it isn't a real loss since Verizon didn't actually pay $700 for the phone.

I am paying $150 for 5 lines of service, 2 smartphones, 3 dumb phones. If the carrier subsidy was worth $26 per line the subsidy would be $130, meaning that the in subsidized cost would have to be $20 for 5 lines of service total. That isn't going to happen ever. Even if you were to take a more modest $15 per line subsidy, the would be $75 in subsidies for my 5 lines and $75 for 5 lines of service. Which isn't going to happen as tmo true unlimited unthrottled 4GLTE plan is $70 for one line no subsidy.

You are probably the only human being on the face of this earth who has been able to do this, though, lol! The rest of us mere mortals will never be able to duplicate this

 

[dpham00]

There is an article/rumor stating Verizon is going to allow financing of smartphones for up to a year. Wouldn't this let somebody buy a phone off contract? If so, why does this new upgrade time frame matter?

Sent from my SCH-I605 using Tapatalk 2

There is a $2.50 per month finance charge for tablet financing. I would suspect that phone financing would be similar. You would be better off going to best buy, pm Verizon retail price and finance at best buy for 18 months no interest. Anyway, Verizon will start financing phones on April 21st.

Sent from my Verizon Samsung Galaxy Note II

 

[dpham00]

You are probably the only human being on the face of this earth who has been able to do this, though, lol! The rest of us mere mortals will never be able to duplicate this

Granted, my Note 2 pricing is special, but others were able to get the note 2 for $50. If I were to count the $50 pricing, that wouldn't change the analysis much.

Also, Back in 2011,I was able to get Verizon's first HD smartphone for $50 within 2 weeks release. You just gotta keep an eye out for deals...





Sent from my Verizon Samsung Galaxy Note II

 

[bigdaddytee]

They aren't like government so much as they are like crack dealers...the first bump is always on the house, after you're hooked, you gotta pay.

Sent from the (4.2 updated) redheaded stepchild of the Nexii

 

[gnr_2]

You are probably the only human being on the face of this earth who has been able to do this, though, lol! The rest of us mere mortals will never be able to duplicate this

I was thinking he was the only human being on the face of this earth that understood what he was talking about..

Sent from my totally awesome Sprint Galaxy Nexus, even if I don't know all its secrets yet.

 

[androidluvr2]

I was thinking he was the only human being on the face of this earth that understood what he was talking about..

I understand him because I have been following his posts for awhile. He is clever!