> It makes perfect sense for the carriers (they get more money)
Sure but it isn't needed any one of them can start to stop doing this and have an advantage over the competition (like t mobile is apparently doing now). So this should fix itself over time.
> it makes sense for users because they don't see it as a phone subsidy, they see it as 'getting a free phone"
They are just naive .. there is no such thing as a "free phone".
> As such, there is a significant disincentive to using an unlocked phone, you have to pay full price for the phone and get no discount off of your monthly bill.
For someone that is used to a more sane environment where such nonsense does not exits (ex. me) this really sounds odd.
Posted Jan 4, 2013 13:24 UTC (Fri) by wookey (subscriber, #5501)
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> > it makes sense for users because they don't see it as a phone subsidy, they see it as 'getting a free phone"
> They are just naive .. there is no such thing as a "free phone".
It has been my experience over many years that most people prefer a fixed monthly charge over a large upfront cost and low monthly cost even when the former version costs a great deal more over any period longer than about a year.
This seems really odd to me, but it's true.
Canonical to demonstrate Ubuntu on phones
Posted Jan 4, 2013 17:49 UTC (Fri) by shmerl (guest, #65921)
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It depends on users' expectations. If they plan to change their devices every year or two - then subsidized method can look attractive, but if they plan to use devices longer (and in many cases people do), then there is an obvious benefit in paying more upfront and getting a lower monthly fee for several years.