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The iPhone Is a Nightmare For Carriers
New submitter HungryMonkey writes "According to the latest EBITDA numbers from AT&T, Sprint, and Verizon, the subsidies they have to pay Apple in order to carry the iPhone are drastically reducing their profits. From the Article: '"A logical conclusion is that the iPhone is not good for wireless carriers," says Mike McCormack, an analyst at Nomura Securities. "When we look at the direct and indirect economics that Apple has managed to extract from the carriers, the carrier-level value destruction is quite evident."' So one money sucking leech has attached itself to another money sucking leech?"
They (the carriers) dont lose money on each transaction, they just make less. So in that case, less profit per unit by more units is a sustainable business model.
"Have you ever thought about just turning off the TV, sitting down with your kids, and hitting them?"
Yep! Check your account options in the upper right. People used to take advantage of this feature to block the infamous "personalities" JonKatz and michael.
T-mobile USA? Ever heard of them? They've offered non-contract monthly plans (with data, same options for the same price as the contract plans, but one payment up-front and no ETF if/when you leave) since forever, and they recently (a year or two back) added contract plans that are cheaper if you bring your own phone.
As a bonus, since T-mobile uses SIMs and aren't evil (or at least aren't the class of evil one expects from US mobile providers), if you got on a cheap ($35/mo, a few hundred minutes + unlimited data) monthly plan plan that was offered only for non-smartphones to tether your N800, you can swap the sim to your N900 when you upgrade, then cut it down and swap it to your N9, still pay the same -- I speak from experience.
On the conventional refill-type prepay, I think T-mobile does have some data options for those (not sure) but I know some of the MVNOs have prepaid data options.
Sure, you have to front the $600 for the phone, but your monthly bill is now $20 instead of $80. After 10 months you're breaking even, and after the two years of the contract your're about $700 ahead, enough to pay for a "free" phone upgrade, and then it's gravy from there on out.
Except that in the US, you would pay $600 up front and still end up paying the $80 each month. US carriers do not offer any sort of discount if you bring your own phone with you.
'The tyrant will always find pretext for his tyranny.' - Aesop's Fables