Why are contracts needed--hypothetically?
Since I'm not in the business and don't understand how cellular service works, I'm just wondering why contracts are required--they aren't with local phone service.
Does anyone ever think there will come a day when we don't need contracts and you can buy your phone anywhere and sign up with any company you want to (who has service in your area)?
I guess that would mean that all cellular services would have to be using the same frequencies, and is that what makes them "different" companies now?
Just wondering...
Does anyone ever think there will come a day when we don't need contracts and you can buy your phone anywhere and sign up with any company you want to (who has service in your area)?
I guess that would mean that all cellular services would have to be using the same frequencies, and is that what makes them "different" companies now?
Just wondering...
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There are a few reasons and yes there will always be contracts
1)Most wireless companies are national service in coverage and long distance, you pay for local service and pay extra for long distance , wireless is lumped in one wireless phone
2)With national plans and services advertising cost millions of dollars and ost local phone companies are local carriers with not much competition.
3)Wireless handsets cost on average minimum retail value of $89.99 up to $600.00 plus, now companies take a calcultated loss to secure the customer on service say Cingular offers a 500.00 value phone discounted to 150.00 and another company offers the same phone for 400.00, whats to stop the customer getting that phone then leaving to another company...
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1)Most wireless companies are national service in coverage and long distance, you pay for local service and pay extra for long distance , wireless is lumped in one wireless phone
2)With national plans and services advertising cost millions of dollars and ost local phone companies are local carriers with not much competition.
3)Wireless handsets cost on average minimum retail value of $89.99 up to $600.00 plus, now companies take a calcultated loss to secure the customer on service say Cingular offers a 500.00 value phone discounted to 150.00 and another company offers the same phone for 400.00, whats to stop the customer getting that phone then leaving to another company...
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It sounded to me that he was not speaking of discounted or subsidized phone but rather paying retail just like buying a cordless phone at Worst Buy. If thats the case then the logic behind arguments 3 and 4 goes out the window. That would let retailers compete for phone sales and carriers compete for subscribers. They could give a reduced monthly for users who commit to a contract since they would be assured of X dollars from that user. They would include an ECF but it would probably be less since it would not be safeguard for their handset costs (since there was none)
The monthly should (and currently does) cover all the costs you describe. Currently the monthly also helps recoup the cost of the phone itself but in his scenario th...
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The monthly should (and currently does) cover all the costs you describe. Currently the monthly also helps recoup the cost of the phone itself but in his scenario th...
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If there is no loss on the phone to re-coup, then that is just more profit margin for the company to cover losses in other areas....it all floats. Give here, take there.
Also, adding on to Agent Debit, contracts help companies forecast and plan for future quarters with the ability to subtract x% of early cancellations; without these benchmarks, it would be all guess-work and chaos.
Also, adding on to Agent Debit, contracts help companies forecast and plan for future quarters with the ability to subtract x% of early cancellations; without these benchmarks, it would be all guess-work and chaos.
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jagster said:
That would let retailers compete for phone sales and carriers compete for subscribers. They could give a reduced monthly for users who commit to a contract since they would be assured of X dollars from that user. They would include an ECF but it would probably be less since it would not be safeguard for their handset costs (since there was none)
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on the whole though i dont think we can trust the average consumer to buy there own handsets (unless the retails where uber-specific on describing there handset models)
I can envision a scenrio where customers are trying to buy a cool Cingular phone but have verizon service or vice versa.
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on the whole though i dont think we can trust the average consumer to buy there own handsets (unless the retails where uber-specific on describing there handset models)
I can envision a scenrio where customers are trying to buy a cool Cingular phone but have verizon service or vice versa.
Same can be said for DirectTV vs Dish or buying PS2 to play XBOX games..
I think the retailers would be able to post which carriers each phone works with or face a lot of returns. The phones would all be unlocked so most would work on a variety of carriers.
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