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Then they force data plans on those with smartphones regardless of whether the user wants or will ever need it, again in unison so that competitors aren't an option. Maybe you just want to use the phone with WiFi? Well, Verizon and AT&T made sure that's not an option.
Now Verizon wants to raise the ETF because it's a smartphone? I'm sure AT&T will follow suit in the next few months.
Aside from a few essential utilities, mobile phones are the highest monthly bill I've ever seen. I've even seen some car loans that are less per month than an average mobile phone bill. Even an old-fashioned POTS line with "unlimited calling" is only ~$25-30/month. AT&T and Verizon get $100/month for that, before taxes and before their forced charges if your phone happens to be a smartphone. It is getting to the point that it would be cheaper to run out the contract no matter how far in you are because this would make it so expensive to leave.
I've always defended the mobile phone companies and their charges, even after I left working for one because I had the opportunity to observe what it costs to operate a large network. But it seems to me, even with that experience in mind, that carriers are just going too far and they know consumers have no option other than to cancel their service and live without it. Of course, there's an app-- I mean, fee for that too.
But this seems to be highway robbery. I think they've gone too far. I'm not picking up a new smart phone from them anytime soon.
Carriers buy phones in bulk from manufacturers at a HUGE discount far below what they even discount the phones to us for. And sometimes even better on exclusives. I have it on good authority that AT&T pays an average of about 65 bucks a pop for iPhones from Apple then sells em for $199 with a 2yr contract. Throw an $80/mo data plan on top of that and I'd say AT&T is making at least a $2000 profit per customer.
It's mostly US carriers that are raping us blind. Want an example, take a look at what the iPhone goes for on Orange in the UK.
ETF's are complete bull and subsidizing is a lame excuse to be charging it.
"It allows us to make imperfect estimates on just how much Apple is receiving in subsidies on each iPhone 3G. $4.6 billion in revenue divided by 6.9 million units equals $666.67 per iPhone. That's a little high, since some portion of that revenue has to be attached to Apple TV sales, but even making the unlikely assumption that Apple sold $500 million worth of a product it calls a "hobby" during the fourth quarter puts the average cost of an iPhone 3G at $594.20."
Maybe a quick google search would be a good idea, before you're calling BS and lies.
Wireless companies employ thousands of people. These employees need their employer to stay profitable in order to stay employed.
I got no trouble with "for profit" companies wanting to make, well, a profit. But I DO have a problem with them using draconian methods to strong arm consumers into staying with them through outrageous ETFs. Especially when they mislead the consumer... No, blatantly LIE to the consumer saying that it's to subsidize the cost of the phone when they've already made 75+ points on the deal at the point of contract.
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However, I don't think the proration is fair; it should be $400/12 = $33/mo not $10.
What we really need to focus on is fees like $0.20/message, especially on unsolicited inbound.
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increased
to $350. Even if you are in the last month of your contract you will have
to pay $120.
It make it harder to capture the Iphone market with this rate
increase.
Don't buy!!
http://www.verizonpathetic.com/lawsuits.html
http://www.verizarape.com/sort.php?type=top