Contracts. Why?

If the cellular companies provided the service and support that their
customers desire and deserve, they would NOT need to lock us in with long,
expensive contracts. Why do we tolerate it?

Discuss...

nobody@nobody1.com1 (LHA) wrote in
news:zCsgj.3377$El5.2810@newssvr22.news.prodigy.ne t:

> If the cellular companies provided the service and support that
> their customers desire and deserve, they would NOT need to lock us
> in with long, expensive contracts. Why do we tolerate it?

When you initially contract with a provider, they usually provide a
phone at no or reduced cost. Similarly, if you renew your contract, you
can usually get a new phone at no or reduced cost.

With no contract, you'd be expected to bring your own phone or pay the
retail price.

--
Bert Hyman | St. Paul, MN | bert@iphouse.com

LHA wrote:
> If the cellular companies provided the service and support that their
> customers desire and deserve, they would NOT need to lock us in with long,
> expensive contracts. Why do we tolerate it?
>
> Discuss...
>


Huh? I've been month to month for more than eight years.

News wrote:
>
>
> LHA wrote:
>
>> If the cellular companies provided the service and support that their
>> customers desire and deserve, they would NOT need to lock us in with
>> long, expensive contracts. Why do we tolerate it?
>>
>> Discuss...
>>
>
>
> Huh? I've been month to month for more than eight years.

Yeah, but sooner or later you need a new phone. . . .

Richard B. Gilbert wrote:
> News wrote:
>>
>>
>> LHA wrote:
>>
>>> If the cellular companies provided the service and support that
>>> their customers desire and deserve, they would NOT need to lock us
>>> in with long, expensive contracts. Why do we tolerate it?
>>>
>>> Discuss...
>>>
>>
>>
>> Huh? I've been month to month for more than eight years.
>
> Yeah, but sooner or later you need a new phone. . . .
>
Yep. But I bought mine rather than lock into a contract. It cost me a couple
of hundred dollars to be free of the yoke. I'll get much of it back if and
when I sell the phone. I learned that awhile ago. Meantime, technology
changes are happening too quickly these days for me to want to be locked in.

"Richard B. Gilbert" <rgilbert88@comcast.net> wrote in message
news:47826BC4.6030500@comcast.net...
> News wrote:
>>
>>
>> LHA wrote:
>>
>>> If the cellular companies provided the service and support that their
>>> customers desire and deserve, they would NOT need to lock us in with
>>> long, expensive contracts. Why do we tolerate it?
>>>
>>> Discuss...
>>>
>>
>>
>> Huh? I've been month to month for more than eight years.
>
> Yeah, but sooner or later you need a new phone. . . .
>
....and he'll jump on Ebay, pick up a nice used one (or buy 2 or 3 so he has
a backup) and he's good to go. Been doing that for years.....and saved a
ton.

On 2008-01-07, LHA <nobody@nobody1.com1> wrote:

> If the cellular companies provided the service and support
> that their customers desire and deserve, they would NOT need
> to lock us in with long, expensive contracts.

As long as they're giving you a $200-$300 phone for free,
they're going to require that you guarantee future purchases in
order to cover the cost of that phone.

> Why do we tolerate it?

People tolerate it because they want a "free" phone.

--
Grant Edwards grante Yow! UH-OH!! We're out
at of AUTOMOBILE PARTS and
visi.com RUBBER GOODS!

On 2008-01-07, Richard B. Gilbert <rgilbert88@comcast.net> wrote:
> News wrote:
>>
>>
>> LHA wrote:
>>
>>> If the cellular companies provided the service and support that their
>>> customers desire and deserve, they would NOT need to lock us in with
>>> long, expensive contracts. Why do we tolerate it?
>>>
>>> Discuss...
>>>
>>
>>
>> Huh? I've been month to month for more than eight years.
>
> Yeah, but sooner or later you need a new phone. . . .

So go buy one on eBay, newegg, or Craig's List for $30. Nobody
is forcing you to take a "free" phone and sign a contract.

--
Grant Edwards grante Yow! How's the wife?
at Is she at home enjoying
visi.com capitalism?

In message <47826BC4.6030500@comcast.net> "Richard B. Gilbert"
<rgilbert88@comcast.net> wrote:

>Yeah, but sooner or later you need a new phone. . . .

So buy one at full price if you prefer. As it turns out, with many
phones the discount is higher then the early termination penalty, so you
really can't lose.

In message <Xns9A1E6E232D4E8VeebleFetzer@127.0.0.1> Bert Hyman
<bert@iphouse.com> wrote:

>With no contract, you'd be expected to bring your own phone or pay the
>retail price.

Even then, it can be tough to find a contract-less post-paid plan.

Personally, I'm not stressing about the early termination penalty when
bringing my own phone, instead I am planning to just take the free
phone, sell it, and pocket the cash.

If I pay out the contract, I won't be as far behind. If not, I win.

"LHA" <nobody@nobody1.com1> wrote in message
news:zCsgj.3377$El5.2810@newssvr22.news.prodigy.ne t...
> If the cellular companies provided the service and support that their
> customers desire and deserve, they would NOT need to lock us in with long,
> expensive contracts.

Not true. Historically contracts were used by carriers to recover the costs
of phones, which tended to cost much more than most people were willing to
"pony up" for. In other words, the marketing guys figured out it's easier to
sell a phone for $39 and then have them subscribe for, say, $40/mo than sell a
phone for $239 and subscribe for $30/mo.

On Mon, 07 Jan 2008 16:05:11 -0500, "Elmo P. Shagnasty"
<elmop@nastydesigns.com> wrote:


>And I don't do business with Verizon.
>
>Oh, but I do do business with PagePlus....at a rate of about
>$30/year.....so even if I do end up using the Verizon network, it's not
>for very much at all.

You are doing business with Verizon, but through a third-party
reseller. You are using their network that Page Plus is reselling.

I do recommend them if you want to go the pre-paid route. Very good
service.

Dave

"Elmo P. Shagnasty" <elmop@nastydesigns.com> wrote:

>In article <13o53o0omormhab@corp.supernews.com>,
> "Joel Koltner" <zapwireDASHgroups@yahoo.com> wrote:
>
>> Historically contracts were used by carriers to recover the costs
>> of phones, which tended to cost much more than most people were willing to
>> "pony up" for. In other words, the marketing guys figured out it's easier to
>> sell a phone for $39 and then have them subscribe for, say, $40/mo than sell
>> a
>> phone for $239 and subscribe for $30/mo.
>
>So explain why I picked up a couple Verizon InPulse Samsung A870 phones
>at Walmart for $50 each. I'm *sure* they're worth more than that.

I'd be surprised if they cost more than $25 to make, but exact cost
information doesn't seem possible to get. Many people claim that
phones really "cost" the $200-$500 that carriers charge, but I don't
believe it. Why would phones be the only consumer electronics devices
that don't have a huge markup?

On 2008-01-08, Jack Hamilton <jfh@acm.org> wrote:

>>So explain why I picked up a couple Verizon InPulse Samsung
>>A870 phones at Walmart for $50 each. I'm *sure* they're worth
>>more than that.
>
> I'd be surprised if they cost more than $25 to make, but exact
> cost information doesn't seem possible to get. Many people
> claim that phones really "cost" the $200-$500 that carriers
> charge, but I don't believe it. Why would phones be the only
> consumer electronics devices that don't have a huge markup?

Of course they have a huge markup. Everything has a huge
markup. Just because it cost $50 to make that TV doesn't mean
you're going to be able to pay less than $250 for it. We
engineers who design stuff like that don't work for free.
Shipping from Asia isn't free. The cost to "make" something is
often trivial compared to the cost to develop it, package it,
ship it, and distribute it. Funny thing, but everywhere along
they way, everybody want's to eat. If you think you can make
and sell cellular phones for $50 and still make a profit
without any of the income stream from the service, then go
ahead and do it. You'll be rich and famous.

--
Grant Edwards grante Yow! I appoint you
at ambassador to Fantasy
visi.com Island!!!

DevilsPGD wrote:
> In message <47826BC4.6030500@comcast.net> "Richard B. Gilbert"
> <rgilbert88@comcast.net> wrote:
>
>> Yeah, but sooner or later you need a new phone. . . .
>
> So buy one at full price if you prefer. As it turns out, with many
> phones the discount is higher then the early termination penalty, so
> you really can't lose.
>
And, do remember that the phone has a resale value in some market,
somewhere. If you keep your phone in good condition, hold onto the box,
manual and accessories that came with it, you'll likely get more on the used
market than you paid for it. I have done this many times over the past
several years. They go fast too.