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[Press/Finance] Telecom Carriers Threaten to Kill Subsidies on Phones
A Real Concern For Apple
While the article is focused on APPL, I found interesting the following points :
- Less subsidies equals less "impulsive/hype" renew
- People will probably start to choose a "long lasting" device
So the "reasonable" phone choice may become new rule.
IMHO, this is great news for RIM.
- 05-09-2012, 05:25 AM #5
Sound fine as long as the carriers put an end to long term contracts. Coming out if pocket several hundred dollars for a smart phone is common overseas, just not in the states. This makes for healthy competition when subscribers can move carriers at will. But I bet the U.S. carriers will want it both ways.
Sent from my BlackBerry 9850 using Tapatalk
05-09-2012, 06:55 AM #6
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The problem here is that while 50%+ of Apple's revenue comes from the iPhone, 65%+ of RIM's revenue comes from the BlackBerry. Sure, their subsidy revenue per device is much lower, but that's a problem they're looking to fix by building demand, not waiting for the subsidies to decline. Also, if subsidies do start to go away, poorer selling handsets are going to be the first victims, not the better selling ones.
- CrackBerry Genius
05-09-2012, 09:33 AM #8
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In the case of RIM, maybe it would shift people from the 9900 to a 9790, but RIM may have a better margin on the 9790.
- 05-09-2012, 10:02 AM #9
This discussion would be moot if American and Canadian carriers kill the subsidies but still keep the same rate plan structuring/contract requirements.
Somehow I just don't see them going to the Indian/European model where the market has been opened up after subsidy removals.
- 05-09-2012, 10:10 AM #10
If you are buying the phone outright, there won't be a contract to sign.
It may be even better if you can walk into best buy and buy an unlocked blackberry or android device and then walk into the carrier of your choice to pick a plan. Or maybe even a Blackberry store?
First they have to get products that people would be willing to walk in and buy first--- Sent From Mobile Device While on the Can! ---
- 05-09-2012, 10:17 AM #11
The thing though is that carriers (such as AT&T) force a data plan on you regardless of where you get your phone from. The explanations range from "We want our customers to have the best possible experience with their smartphones" to "Data plans let customers fully utilize their device, without the worry of bill shock."
So, if I'm not getting a subsidy on the handset's price and am being forced to get a plan I don't want, am I not better off with the $300 subsidy that comes with a contract?
Last edited by raino; 05-09-2012 at 10:26 AM.
- 05-09-2012, 11:26 AM #12
These smaller ones offer the subsidy through their TAB plan(though not really a subsidy since you still pay it eventually and you are not locked into contracts with them so you are free to change at any time.
Wind in particular from a consumer perspective looks like a great choice since right now I can get pretty much my existing plan plus voicemail, though reduced to only 100mb for $25/month as compared to my $65. If I wasn't locked in with a penalty for cancellation and didn't love how reliable and expansive my network is I would have switched already.
Last edited by BoldPreza; 05-09-2012 at 11:28 AM.8700, Bold 9000, Bold 9700, Torch 9860, Z10! No case FTW!!!