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Verizon CEO: Going contract-free would be 'pretty easy' - Page 2

post #41 of 69
Quote:
Originally Posted by seeknemo View Post

Of course going contract free is easy...its just anything but free. You pay for the phone up-front or in installments and still pay full price for the monthly contract. I highly doubt they will reduce their voice, messaging and data fees for monthly contracts. Don't think so? Verizon has a history of "screwing" their customers...41.4% profit margin and its still not enough, oh you were paying $30 for unlimited data...well now you pay $30 for 2GB, you want data sharing plan...ok give us more money, we'll give you less data and you can share between all your devices...great for investors but not for customers.

Is Apple the only one allowed to have healthy profit margins?
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post #42 of 69
Quote:
Originally Posted by StephanJobs View Post

I don't know.

To me a 2 year contract is a better deal as long as your staying with the carrier you started off with.

Which for 99% of the time is true for me.

If you switch your phone every two years basically on the dot then yes a contract isn't really that much more. But many folks don't, they hang on a phone until it is dead. So that extra year is a lot of money.

And remember that split the two fees also means reducing the rate plan on which the percentage based franchise taxes etc are based on.

Plus for those of us that are paying full price because we need an unlocked phone, paying the same rates as folks on contract with a subsidy to pay back sucked as a matter of principle

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post #43 of 69
Quote:
Originally Posted by pedromartins View Post


It would be great for Apple to invest more in Europe (+stores, +apps, + brand support) and price their devices accordingly. (700 euros for a phone? No.)

Much of what you are asking for is out of Apples hands. They don't control what countries developers choose to sell their apps in. They don't control distribution rights on movies etc. and they aren't the ones slapping crazy import taxes on electronics made out of country.

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post #44 of 69

The telecom is service. Without talking about service quality is joke. Will you pay something for less coverage? Will you pay for telephone for you can not make phone call?

 

Anyway.. let's go back to the cost of plan+phone. I am calculate iPhone 5 16GB.

T-mobile $70 *24 and add $579.99 = $2,259.99 for 2 years. This is unlimited plan. So there is no better plan can be come up with T-mobile in future.

 

V $90 *24 and add $199.99 = $2,359.99 (+$100 for 2 years pay more than T-Mobile. $4.16 per month) - 1GB data plan

$100 * 24 and add $199.99 = $2,599.99 (+$340. $14.17 per month) - 2GB data plan

$110 *24 and add $199.99 = $2,839.99 (+$580. $24.17 per month) - 4GB data plan

 

Unless you truly use unlimited data(which means more than 2GB per month) Verizon plan is not that bad as you think.

Less than $0.50 a day pay more is too much for you than I guess even 3rd party prepaid plan works as well.

 

Straight talk now selling iPhone 5(3G service only?) $45 unlimited plan.(I think they cap on after 2GB use)

At least it is cheaper than T-mobile.

post #45 of 69
Quote:
Originally Posted by Everett Ruess View Post

I would rather pay full pop up front for an iPhone (like I did with my 4g iPad) then get a reasonable priced month to month data plan. T-Mobile deal is still a 2 year contract, it just shifts contract to hardware & basically same price as a good carrier 2 year contract

Actually it isn't a 2 year contract at all. That implies you are stuck with them for two years. You aren't. Pay off your phone and you can walk.

And you can buy it at Apple and possibly qualify or the two year no interest on phones deal from Barclaycard and have the whole period to pay it

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post #46 of 69
Quote:
Originally Posted by Michael Scrip View Post


Plus... how often would people change carriers if they could? Every 6 months? That would be a hassle... porting your number and such.

It's perhaps 24 hours. And most of that is just waiting for the computer to hit your request in the queue.
Quote:
In the United States the carriers all use different frequencies and equipment... so it's not as easy as popping out a SIM card like you can in other countries.

That is partly FUD. Outside of the whole CDMA v GSM there's enough overlap with the GSM carriers yes you can pop sims in and out just fine. Sure you'll lose a feature here or there like visual voicemail on your iPhone, but folks that want that flexibility are typically fine dealing without such things

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post #47 of 69
One quibble: the TMo 32gb and 64 gb come with interest charges; only the base model 16gb (that Apple wants to clear from the shelves, anyway) is an interest free loan. And TMo does everything it can to force new iPhone 5 users into one of its 3 structured plans, which serves to streamline TMo's biz model and corral all those iPhone high data users. For low data users, TMo has long been the way to go; remains to be seen if it will continue to value those pre-existing iPhone customers, many of whom have different plans that vanish if they change anything or fail to keep track of expiring minutes.
post #48 of 69
Quote:
Originally Posted by StephanJobs View Post

Well follow my plan.

I upgrade every 2 years. My bill is the same whether I upgrade or not.

If I stay with the same carrier which I have for the past 4 years then I only pay 199$ for 16 gig iPhone

No, you pay $649. $199 plus sales tax up front and the rest is covered by your carrier as part of your bill. That's how they justify the contracts, ETF etc.

That detail is why some folks are irked. AT&T etc don't split out the service part and the phone repayment part. It's just one bill. Those of us who pay full price cause we need an unlocked phone for working overseas pay the same rate with them as you who did get a subsidy. How is that fair? It's not. We shouldn't have to pay the $15-20 that is you paying off your phone since we paid for the whole thing upfront

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post #49 of 69
Quote:
Originally Posted by Michael Scrip View Post

Maybe this new "no contract" plan will help T-Mobile.

Prior to that... T-Mobile has always offered competitive prices compared to "expensive" carriers like Verizon and AT&T... yet their subscribership is small. T-Mobile has been the 4th place carrier (out of 4) in the US for quite a while.

5 years without official support for the iPhone will do that.

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post #50 of 69
Quote:
Originally Posted by TBell View Post

 

 

Yes, but T-Mobile's plans aren't pay as you go. They are monthly unlimited no contract plans. Every month the contract renews unless you cancel. Show me an AT&T, Sprint, or Verizon contract plan that includes unlimited voice, texting, hotspot, and something resembling unlimited data for $50 a month ($70 if you included the phone). Good luck. 

 

What if I showed you Virgin Mobile instead of one of the major telcos? $55 a month for unlimited everything.

post #51 of 69
Of course it would be easy for them to go contract free and drop the subusity.
All they will do it charge you the same amount for your plan, then tack on an additional monthly fee for the cost of the phone. That way, you will still be a customer for 2 years because you will be on hook for the cost of the phone (sure you could leave early but then you would have to pay the rest you owe on the phone, its just like the early termination fee)They make out even if your only a customer for 1 month. If you think for a second they will lower their plan prices you are highly mistaken.
post #52 of 69
Quote:
Originally Posted by Durandal1707 View Post

That's actually $580 for the phone. Whoops! Also whoops in that you're missing a crucial fact, which is that contract plans include that extra cost, usually around $20 per month, to subsidize the phone price. It's just that that subsidy payment is baked into the plan price, instead of itemized separately. In other words, T-Mobile's honest about it. No way are you only paying $200 for that phone — that's less than it costs Apple to even make it ($207), let alone profit margins.

On your other carrier, what you're really paying for the phone is $199 + $20/mo for 2 years, which comes out to $680. This is more than the phone's off-contract price of $650 — i.e., it's a rip-off. Add in that the contract plan is significantly more expensive even besides the subsidy payments, and you'll just about always spend a lot more on AT&T or Verizon than you will on T-Mobile.

Contract plans are for people who can't manage fifth grade arithmetic..

I thought I had it wrong with T-mobile's plan and sort of mentioned that.

Thanks for the break down.

One thing that confuses me is that if some one (like myself) who decides a better service for them, is to choose AT&T over T-mobile due to coverage and other non-monetary related issues, still has to pay the same rates for their plan whether they subsidize or not.

An iPhone plan on AT&T is the same cost month per month whether you subsidize or not.

So, off contract or on contract (at this time) you are still paying the same price for your service.

The only drawback is that you sign on for 2 years and there are penalties is you leave before that time is up.

I mean, unless there's some underground iphone plan fight club I personally haven't heard of where they give non-contract iPhones service plan discount, this is still a better choice for me.

I know it's built into their (AT&T-Verizon-sprint) plans currently, but t-mobile service I can't do.

Also, I have an extremely good discount going where I am at. 60$ month.

So .....concerning me I am staying put.

The last comment about

"Contract plans are for people who can't manage fifth grade arithmetic.."

Isn't always the case. Funny though.
post #53 of 69
Quote:
Originally Posted by Michael Scrip View Post

That's what I was thinking. Sprint and T-Mobile have always been "value" carriers compared to Verizon and AT&T.

Yet Verizon and AT&T have 2 to 3 times as many subscribers. I wonder why...

Maybe you do get what you pay for 1smile.gif

I think it's great that T-Mobile is trying something new in the US. The no contract thing is nice... but you now have to buy your phone outright. And your monthly service will be cheaper on T-Mobile... but you may have poorer coverage.


Although possibly a valid argument, this is in flux.

T-Mobile has a significant amount of new bandwidth courtesy of the failed AT&T acquisition
Sprint is purchasing MetroPCS
post #54 of 69
Quote:
Originally Posted by AppleGreen View Post

On T-Mobile, the phone prices are:

1) iPhone 5 16 GB = $580

2) Blackberry Z10 = $532

3) Galaxy Note II = $680 (current promo = $640)

4) Galaxy S III 16GB = $550

5) Nexus 4 = $458 (The Nexus 4 16GB is $349 directly from Google).  Nexus 4 has no LTE.  So, can't really compare.

These are the prices of every manufacturer's high-end phones whether you pay all at once or over 24 months.  There are many cheaper Android and Windows phones, but I just listed the high-end ones.

The question is: how can anybody say that the iPhone is much more expensive than the competition?  For the small premium that you have to pay for the iPhone, you get so much more in terms of quality, service, resale value, ecosystem, and so on.

If people think Samsung or Google will win over Apple, they are dreaming.


but... but... but...

customization
walled garden
replaceable battery
removeable storage
widgets


1oyvey.gif
post #55 of 69
Why is the math so difficult. T-Mobile is the value carrier at the moment.


"Following the announcement that the iPhone 5 is coming to T-Mobile on April 12, Zagg has compiled a cost comparison to help you establish the most financially viable option when it comes to owning an iPhone on one of the U.S’s 4 major carriers.

The AT&T and Verizon pricing is taken from their Share Everything/Mobile share plans, based on only having one line on the account. Obviously, Sprint doesn’t offer tiered data, so the only plan available is unlimited."





"T-Mobile’s data.. ermm… data assumes you’ll go for the unlimited option, but it does also note that choosing the 2GB option will save you $240 over the two year span. As you can see, even if you did opt for T-Mobile’s unlimited data plan, then it is still significantly cheaper than its rivals. Granted, this isn’t the only thing you should consider if you’re lining up to buy an iPhone 5, however, it’s definitely worth noting that financially, T-Mobile will certainly give you the best deal.

Are you planning to switch to T-Mobile? Or are you already with T-Mobile and hoping to buy an iPhone 5? Leave your comments below, and be sure to follow me on Twitter @TiP_Stephen"

1. Steven Warwick. Published 27 March 2013. iPhone 5 costs compared across T-Mobile, Verizon, Sprint and AT&T. Today's iPhone. Retrieved 8 April 2013.
post #56 of 69
Originally Posted by MacBook Pro View Post
Why is the math so difficult. T-Mobile is the value carrier at the moment.

 

Straight Talk: $40 a month, $480 a year, plus $649 for the iPhone. $1,129. No LTE, but hey.

post #57 of 69
I feel compelled to mention that T-Mobile has made some great strides in call quality for several reasons:

Bandwidth from the failed AT&T acquisition
VoLTE (first carrier in the United States)


Additionally, if the T-Mobile network fails the "backup" network is still HSPA+ 42 Mbps.
post #58 of 69
Quote:
Originally Posted by Tallest Skil View Post

Straight Talk: $40 a month, $480 a year, plus $649 for the iPhone. $1,129. No LTE, but hey.

Noted.

Does Straight Talk have:

HSPA+ 42 Mbps ?
Visual Voice ?
VoLTE ?

How is the coverage?
post #59 of 69
Quote:
Originally Posted by Tallest Skil View Post

 

Straight Talk: $40 a month, $480 a year, plus $649 for the iPhone. $1,129. No LTE, but hey.

Why are you using the price after one year to compare against a chart that lists the prices after two years?

 

Granted, it's still going to be somewhat less, but not nearly as much as you're making it out to be.

 

edit: Looking at Straight Talk's web site, your numbers don't appear to be accurate either. Here's what I'm seeing:

 

"Unlimited" plan: $45 a month ($495 a year if you buy a year at a time), and the phone costs $650. So, after two years, it's $1,640 if you pay a year at a time, and $1,730 if you pay month to month.

 

A little research reveals that ST's "Unlimited" plans actually throttle you after 2 GB, so T-Mobile's 2 GB throttling plan makes for a more appropriate comparison. That one is $60 per month, plus $580 for the phone, which comes out to $2,020. So, it's a little more, but given that you get actual roaming coverage, it's well worth it if you ask me.

 

(edit: I did make one mistake; the $695 price was a bundle with the phone + one month of service. I've adjusted my post; unlike some people, I am able to admit it when I make a mistake.)


Edited by Durandal1707 - 4/9/13 at 2:03pm
post #60 of 69
Well, I can't speak for everyone else, but I have the grandfathered unlimited data with a Galaxy S3. And I have to say, I really don't want to give it up. Not with the way cell phone use seems to be evolving.

And I don't expect Verizon to change the rates they charge grandfathered customers.

Which means, I'm still left holding the bag for the full freight when it comes time to replace the SGS3.

So the question arises, what else is there? Two years ago, the answer was, "not much." But both T-Mobile and Sprint look a lot better than they did; more spectrum, more network improvements, better rural coverage, and some plan features that aren't available anywhere else.

And that's the reason that I think the real story will be whether Verizon and AT&T's pricing holds up in the face of real alternatives, given that we finally seem to have secured four national networks in this country.
post #61 of 69

While I initially looked at US pricing, I was still looking at off contract retail pricing. In this case the S3 is listed €100 cheaper when comparing off contract pricing from that specific source. Even today that is a bigger difference than I expected.

 

Quote:
Originally Posted by MacBook Pro View Post


Noted.

Does Straight Talk have:

HSPA+ 42 Mbps ?
Visual Voice ?
VoLTE ?

How is the coverage?


I'm not sure of the details, but if coverage is decent, $40/month is extremely competitive.

post #62 of 69
Originally Posted by Durandal1707 View Post
Why are you using the price after one year to compare against a chart that lists the prices after two years?

 

Ah, you're right. 1tongue.gif

 

$1,609, then.


"Unlimited" plan: $45 a month


It's $40 a month if you pay by the year. I went with that, which is right on the website, too.

post #63 of 69
Durandal1707 I'd like to counter your post with 3 words,
Reception
Reception
Reception
post #64 of 69
Quote:
Originally Posted by Tallest Skil View Post

 

Ah, you're right. 1tongue.gif

 

$1,609, then.

 

No, $1640. $495 * 2 + $650.

 

Again, fifth grade arithmetic.

 

It's $40 a month if you pay by the year. I went with that, which is right on the website, too.

No, it's $495 a year if you pay by the year, which is $41.25 a month, not $40. Again, fifth grade arithmetic.

 

And yes, it's right on the website:

 

 

 

 

Quote:
Originally Posted by Everett Ruess View Post

Durandal1707 I'd like to counter your post with 3 words,
Reception
Reception
Reception

Yes, those are three excellent reasons not to go with VZW, AT&T, or Sprint respectively. :D


Edited by Durandal1707 - 4/9/13 at 2:03pm
post #65 of 69
Quote:
Originally Posted by Everett Ruess View Post

Durandal1707 I'd like to counter your post with 3 words,
Reception
Reception
Reception

Well, as Straight talk marketing shows they are using Sprint, AT&T, T-Mobile & Verizon(You should check CDMA support by zip code) network.

They use all kind of network.(I am not sure they will move to their own network.. Maybe Walmart buy T-Mobile?)

 

You can order specific company sim card as well.(if you want ATT or T-Mobile.)

So reception itself should be there as each telecom coverage.

 

All 3rd party prepaid receptions are pretty good and bad. 3G speed is also so so...But it works.

post #66 of 69
Originally Posted by Durandal1707 View Post
No, it's $495 a year if you pay by the year, which is $41.25 a month, not $40. Again, fifth grade arithmetic.

And yes, it's right on the website:

 

Hey. Grow up. They changed it on me. It used to be 40 a month.

post #67 of 69

Does it really matter? Failing to read what I wrote, "correcting" me about what's on the website without bothering to spend 10 seconds verifying that you were correct (even after I'd cited my numbers as coming straight from their website), and then messing up your math three times in one thread isn't necessarily any more impressive than deliberately making stuff up.

post #68 of 69
Quote:
Originally Posted by karas11 View Post

Well, as Straight talk marketing shows they are using Sprint, AT&T, T-Mobile & Verizon network.
They use all kind of network.

So what's the catch?

A Straight Talk customer could be using Verizon's towers for about $40 a month... but a Verizon customer will also be using Verizon's towers but have to pay at least $80 a month.

How can that be? I never understood how an MVNO works.

One thing I've heard is that Verizon's customers get priority over any other MVNO traffic... but is that all?
post #69 of 69
Quote:
Originally Posted by Michael Scrip View Post

So what's the catch?

A Straight Talk customer could be using Verizon's towers for about $40 a month... but a Verizon customer will also be using Verizon's towers but have to pay at least $80 a month.

How can that be? I never understood how an MVNO works.

One thing I've heard is that Verizon's customers get priority over any other MVNO traffic... but is that all?

Straight Talk lacks (at least) the following features:
  • LTE
  • HD Voice (Wideband Audio)
  • MMS (Multimedia Messaging Service)
  • Visual Voicemail
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