[LINK] News: 'New mobile phones will double as credit cards'
ivan at itrundle.com
Sun Apr 29 19:51:09 EST 2007
On 29/04/2007, at 6:01 PM, Kim Holburn wrote:
> On 2007/Apr/29, at 8:47 AM, Adam Todd wrote:
>> At 03:06 PM 29/04/2007, Kim Holburn wrote:
>>> See, I reckon $33 a month, which is way more than I have ever paid a
>>> phone company for a mobile phone is a rip-off.
>> It's cheaper than my landline. Landline $32.95 a month, plus call
>> costs on top of that, rarely below $40.00 - that's not many calls!
Interesting: I thought that landlines cost less than $27 a month. If
one considers the overall total communication spend in a household, I
would have thought that this cost is trivial. And it's harder to have
decent internet connectivity without a landline.
> I rarely paid more than $5 a month. many months not even that,
> occasionally nothing at all. I only pay for calls, a single rate
> anywhere in Australia.
> When you've paid off your phone what happens then? You keep paying
> the same amount for nothing? Or you upgrade your phone?
There are plenty of mobile phone plans that offer phones for 'free'
in Australia, so long as the buyer commits to spending a certain
amount per month over 24 months. At the lower levels (such as the $20-
$30/month range), the phone IS free to the buyer, since the calls are
generally higher to compensate. If you simply bought the $20-$30 plan
without a phone, you'd pay the same per call, so the phone cost is
being subsidised by all those who sign up to the 'low-value' plans.
As for what happens after you've paid off the phone (if indeed you
think that you have), you can commit to other plans, or a month-by-
month plan, or a lower plan with or without phone. It's a shame that
telcos (NOT the phone manufacturers) don't encourage continued use of
an existing handset. I doubt that the telco makes any money from
providing new handsets.
Anyone have data on this? (for Australia: I know that the situation
is different in places like the US, thanks to the cost breakdown and
analysis of the iPhone).
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