Using Postpaid SIM w/ Pre paid Phone
but if you buy a pre-paid phone, you pay for pre-paid service
is it still worth it?
sangyup81 said:
yeah you can do that
but if you buy a pre-paid phone, you pay for pre-paid service
is it still worth it?
Just because you buy a prepaid phone doesn't mean that you have to use it on prepaid service. A SIM is a SIM is a SIM. It may be cheaper to buy a prepaid phone than to extend a contract. You could even not use the minutes that come with the prepaid phone if you wanted to.
Not that most consumers care, but when too many people buy these subsidized phones w/o activation Cingular drops the program and it hurts others who want one for legit reasons. They only just recently reinstated that program with these new rules.
texaswireless said:
Not that most consumers care, but when too many people buy these subsidized phones w/o activation Cingular drops the program and it hurts others who want one for legit reasons. They only just recently reinstated that program with these new rules.
Do you really know this for a fact or are you just extrapolating this? And who are you to say what's "legit" reasons? If someone needs a phone for any reason that's a "legit" reason. If you meant it was better for them to lock themselves into a contract and pay more money that's different. You evidently think that this is in some way "defrauding" the company.
If Target or Wal-Mart just wants to sell it off the shelves, make their $5-$10 and let Cingular get hosed they will soon find Cingular pulling the program. This is fact because it already happened once. Same for agents. Some agents were selling the phones with Post-Paid service contracts and pocketing the $30-$40 difference since Cingular pre-subsidized the handset and then paid a commission designed to subsidize again.
And a legit reason for buying a Go Phone is you want Go Ph...
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texaswireless said:...
If Cingular puts a phone on the market and pays a portion of it's cost that is a subsidy. Cingular's intentions with the pre-packaged Go Phone (and the requirements given to their dealers) is that it needs to be activated and the first month of service paid.
If Target or Wal-Mart just wants to sell it off the shelves, make their $5-$10 and let Cingular get hosed they will soon find Cingular pulling the program. This is fact because it already happened once. Same for agents. Some agents were selling the phones with Post-Paid service contracts and pocketing the $30-$40 difference since Cingular pre-subsidized the handset and then paid a commission designed to subsidize again.
And a legit reason
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texaswireless said:
Do you not understand the concept of a subsidy?
Of course I understand the concept of a subsidy. What does that have to do with people picking up a handset for monthly use by buying a prepaid package? You've put forth all this fear of people buying what the company sells and fearing that this will be the "end of subsidies as we now know it." I think this is your own fear and yours alone.
Cingular previously discontinued their subsidized prepaid phone program due to many people buying the handsets for what you describe instead of activating them for prepaid service which of course generate revenue. THAT IS A FACT!
Cingular agents, whether national retail or premier stores are required by their purchase agreement to NOT SELL Go Phone handsets to customers unless they are activating prepaid service (and paying the first month of service with said activation). WHAT THE CUSTOMER DOES AFTER THE FIRST MONTH DOESN'T MATTER. It is also going to then be a similar price (even with the lowest monthly cost) to just buying a handsets at the no commitment ...
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Cingular sells phone A intended for Go Phone for $89.99 ($30 below cost).
Cingular has incurred a $30 loss REGARDLESS of how much revenue said customer is bringing into the company.
Cingular and Verizon make in the neighborhood of $10 per quarter per customer, give or take (and some months they take a loss).
Every time they subsidize a handset it takes anywhere from 10-15 months to become profitable again on that particular customer. They offer upgrades at 21 months for a two year agreement (meaning, regardless of revenue, the...
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