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Verizon Could Follow T-Mobile’s Lead by Ending Carrier Phone Subsidies

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T-Mobile for the past month has been kicking around the long-held idea that the carriers should discount the price of mobile devices on their network. Subsidies like this make our phones cost less and the carriers bank on making their profit in the monthly contracts afterwards. T-Mo is planning on getting rid of these plans in 2013 and move towards other plans that they say will save customers money in the long run. Verizon and AT&T are understandably very curious how this experiment will go down. 

Verizon CEO Lowell McAdam was quoted at CES this week saying that these subsidy-free plans would be a “great thing,” and that Big Red could move to those types of plans “very quickly” if the customers wanted it. AT&T’s Mobility Chief Executive Ralph de la Vega said more of the same, but doesn’t think that people are ready to pay for phones full price at the moment.

It’s no secret that the big carriers would love to make more money off the fancy new devices and phones that they sell, but  it sounds like they won’t move towards them if the customers aren’t ready for it. And the switch to this new type of plan would most likely change us from the “new every two” contracts, but don’t believe that the carriers won’t get their cut.

Do you want to do away with carrier subsidies? What would you like to see them do instead?

Via: WSJ

  • Kheir Francis

    Lets just see how this pan’s out. Verizon is a decent carrier, expensive for no reason, but there the best.

  • RaptorOO7

    The only way Verizon gets squat out of this is IF customers can take any CDMA phone they want on their network otherwise why would you bother. You can go from GSM carrier to carrier with ease.

    I for one would NOT pay verizon $700 for what a device I can’t use anywhere else, there is no benefit for me to have a $700 paper weight sitting on my desk. The prices on these phones are too high as it is and customers not likely to jump on the bandwagon.

  • AnotherAndroidKid

    Tablet and world wide google free wifi.

    F Off VZ.

  • VinMessina

    Until carriers start offering cheaper plans for those who purchase full retail, I could care less. Buying a device at retail saves me no money. All it does it keep me contract free. Either lower the retail price of the phone or lower my monthly bill as an incentive for purchasing full retail. Otherwise, STFU.

  • dffx

    I actually just did this recently; ditched VZW (my contract ended in October) and bought a TMo Note 2 at retail cost. Wasn’t cheap, but I am now on the $30 / month unlimited data and text plan, so I should end up in a better spot, financially, in 2 years than I would have if I stayed with VZW.

    Also, better reception in the city and HSPA+ has some stellar battery life, while still getting around 15mbps.

  • ROB

    We need google to buy tmobile and use the spectrum from dish and clearwire and bury the bastards..

  • MooleyBooleyTroll

    When Verizon gives me an option for 500 minutes, 5000 texts, and 5GB data for $50 I will consider going back.. Until then, they can kiss my ass… My $30 T-Mobile plan is sufficient.

  • master94

    Difference from T-Mobile and vzw. Vzw will stop discounts but will charge the same, while T-Mobile will drop monthly price. So screw you vzw.

  • hhhmmm so $100/month plans with no contract, how about no