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Why Subsidized Phones Are a Rip-Off

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shardnet
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Originally Posted by Killbynature View Post
Like I said it's different in the USA. Our plans pretty much make us pay for the full price + extra. All phones have a 1 year warranty. Even then using tmobile insurance it will cost you an extra $120 every two years. They also charge you a fee for delivering a replacement now. I think it's $5 om insurance and 20 dollars without.

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Ah so that's different to here. Where the plan's price stays completely the same regardless of you getting the phone (either completely free, or subsidised) or not.
 
Aerocaptain
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(Last edited by Aerocaptain; 15th April 2012 at 08:38 PM.)
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I personally feel the opposite of the OP. How exactly is a subsidized phone a ripoff? The PLAN is going to be the same whether you bring your own phone or get one from the carrier. If you know you aren't going to be sticking around for 2 years then buying your phone outright might be the way to go. Otherwise I'd say save some money.
Very true. In the US, the top 3 carriers (Verizon, At&t, and Sprint) charge the same rates whether you have a subsidized device or not. This effectively takes any advantage to purchasing the device without subsidy out of the equation. The only other option is to set up a device with an inferior carrier that offers mediocre quality with severely regionalized service reception (T-Mobile, Revel, Boost, Clear, and about a hundred more). For the most part, the only reason people go to those carriers is either because the city they live in is covered "enough" with that carrier and they don't leave the city much so why not save a few bucks, or they cannot get credit approval with the big 3. (Anyone using those lower carriers, don't get your panties in a knot! I'm generalizing) Unfortunately, those low end carriers are the only ones that offer better rates for unsubsidized phones. Of course to service detriment.

Carrier prepays are a joke...unless you want a pure talk/text phone.

Calling cards are a pain in the ass. Once again pure talk phone.

Quote:
Originally Posted by falconeight View Post
If you don't see that its a rip off, then you are as much the problem.
I hate when people snap at other people without supporting their point. Bunch of followers. Stop going with the crowd and educate yourself.

Q: Are Carrier Subsidies a Rip Off?
A: No, you'd be stupid not to take one with the big 3.

Q: What is the Rip Off?
A: The policy among the big 3 to charge more money across the board on monthly plan rates to compensate for the subsidies.

Q: Why is that policy a Rip Off?
A: Because it does not give the freedom to purchase a device outright (without taking subsidies) in order to remain off contract with a reduced monthly service plan.

Q: What do we have to blame for the $30 Verizon upgrade charge?
A: The iphone..... Bastards!

(Actually 80% serious on the last one. I'd explain why but I think this post is too long as is.)

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Killbynature Old
(Last edited by Killbynature; 15th April 2012 at 11:47 PM.)
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Sprint has horrible coverage. So does at&t. Unless your on the area. That point is nulled and void. Verizon is the only exception regardless of coverage. Your point is also flawed as I'd you travel a lot your better off swapping out simcards and paying for an international prepaid plan while you are out of the country. If your not in the coverage area tmobile does have wifi calling compatible phones. They also give free signal boosters if your eligible.

Let's see a prepaid carrier straight Talk is $45 a month and can use tmobile and at&t towers. Buying your phone off contract would still be cheaper than paying for subsidies and contract.

Most prepaid plans don't even use calling cards anymore. Walk in pay bill at kiosk or online. Even boost and cricket have them.


If your out of a service area on at&t well too bad no wifi calling and no signal boosters to help you. Sprint is the same way. Verizon only carrier to have a large amount of coverage.

What the problem is people don't understand that having customers buy phones full price would lower rates on contract plans.


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phillibl
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What many people forget is there are other service providers you can use that are much cheaper. I am on Page Plus Cellular now and my bill was about about cut in half. Also they use verizon's towers so service is great.
 
benson12
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I'm with Aerocaptain on this. If you are with the big 3, then you may as well take the subsidy. They don't offer any discount to bring your own phone. If you want the best networks, you have to pay here. T-Mobile offers great discounts to bring your own phone, so if their network works for you, that's your best deal.

I have not looked into MVNOs much other than to find none really work for me (coverage and plan wise). They may be an answer if their coverage is good enough for you.

Essentially, if you are on the big 3, you should use your subsidy, you are paying for it anyway.
 
adelmundo
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(Last edited by adelmundo; 16th April 2012 at 01:04 AM.)
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I'm with Aerocaptain on this. If you are with the big 3, then you may as well take the subsidy. They don't offer any discount to bring your own phone. If you want the best networks, you have to pay here. T-Mobile offers great discounts to bring your own phone, so if their network works for you, that's your best deal.

I have not looked into MVNOs much other than to find none really work for me (coverage and plan wise). They may be an answer if their coverage is good enough for you.

Essentially, if you are on the big 3, you should use your subsidy, you are paying for it anyway.
Straight Talk, on their Bring Your Own Device Plan, use both AT&T and T-Mobile for their networks. You can buy any GSM phone that uses either T-Mo band or AT&T bands and just purchase the correct SIM from them (costs $15 for the SIM) and then put it on their Everything Unlmited Plan for $45/month. You get the same coverage area as AT&T postpaid and you will get up to HSPA+ "Faux"G speed, or if you have the T-Mo SIM, you get the same coverage area as T-Mo with up to HSPA+ 42 Mbps. On average I get rougly 2-3 Mbps and as high as 8-9 Mbps in some areas using the Straight Talk AT&T SIM on my International Galaxy Note.

T-Mobile has another plan which they sell at Walmart (both online and in-store) if you use primarily data and text and don't use a lot of voice minutes for $30/month, which includes 100 minutes voice, unlimited text, and unlimited data at up to HSPA+ 42Mbps (throttled after 5 GB per month). You can buy a T-Mobile branded phone (doesn't have to be unlocked) and use this or buy an unlocked AT&T compatible phone that has the chipset to flash a T-Mobile compatible modem (such as the Samsung Galaxy S2 or the AT&T version of the Samsung Galaxy Note).
 
KingKuba13
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Big 3 here have a monopoly so what are you going to do buy the phone outright and then go and try and get a better monthly deal with wind/mobilicity/etc???

Have fun with that.
 
thebobp
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Originally Posted by Aerocaptain View Post
Very true. In the US, the top 3 carriers (Verizon, At&t, and Sprint) charge the same rates whether you have a subsidized device or not. This effectively takes any advantage to purchasing the device without subsidy out of the equation. The only other option is to set up a device with an inferior carrier that offers mediocre quality with severely regionalized service reception (T-Mobile, Revel, Boost, Clear, and about a hundred more).
I can't confirm or deny this, so let's just say that, if you're picky enough, you'll probably end up paying the most anyway. This does not, mean, however, that everyone else has to as well.

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Originally Posted by Aerocaptain View Post
Carrier prepays are a joke...unless you want a pure talk/text phone.
lol wot.

There's an entire thread that says otherwise.
 
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(Last edited by Aerocaptain; 16th April 2012 at 02:55 PM.)
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Originally Posted by thebobp View Post
I can't confirm or deny this, so let's just say that, if you're picky enough, you'll probably end up paying the most anyway. This does not, mean, however, that everyone else has to as well.



lol wot.

There's an entire thread that says otherwise.
A whole thread? No way! If its in a whole entire thread it must be true.

I want excellent call quality, great coverage areas, helpful CS, and fast data. And that makes me picky? So your saying that if I want better service, I have to pay a little more? Hmmmm, Not exactly a revelation.

As far as my prepay statement, I was referring to the big 3 not allowing smartphones on their prepays.

Sure you can go with an off carrier that rents towers from the big 3, but do you want to suffer through spotty coverage areas, outsourced CS, and heavily throttled & reduced data speeds? Prepay discussion is better left in the prepay thread for the minority of people it is good for.

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Whether I pay $200 or $500 for a phone, I'm still paying the same monthly amount anyways. Unless I go to straight talk or T-Mobile. /thread.

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