Would you prefer cheaper mobile minutes or a nicer handset?
I have heard from numerous sources over the past few weeks that O2/Telefonica are considering removing all handset subsidies next year.
Would this be a good thing?
If you look at the global market I think the only market for subsidized handsets should be the countries where the carriers are just developing the market other than that I am in agreement with it as I look forward to my bill dropping a minimum of 50%.
In case you didn’t know it I am paying for your handset.
I don’t buy network looked handsets and since you do at a substantial discount I am contributing towards the price that the carrier paid for your handset.
Take for example the handset I am using at present the amazing Nokia E71, Irish carriers will sell this for around €99 including a new connection or upgrade, now I know that they are paying over €350 for that phone.
Vodafone openly makes a point on their website that on an upgrade users save €135 minimum per handset.
If the four Irish carriers pay an average handset subsidy of €200 and we have 5 million handsets the savings would be incredible for the carriers and if they passed this to us the customers.
Imagine €10 billion being passed on to Irish subscribers
The subsidized market would still exist only it would be opt out for people like me.
What do you think?
Would you like cheaper calls?
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18 comments...What do you think?
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I rarely spend less than €200 monthly with O2-Ireland and enjoy knowing my next handset will cost less than an overnight stay in a four-star hotel in Dublin. Getting inexpensive–or free–handsets means I always have stocking stuffers for family, friends and students.
I know I should be arguing for cheaper telephony but the gimmick-driven consumer in me prefers subsidised handsets.
My last two handsets were unsubsidised and I’d happily keep doing that in the future if I could get cheaper data and minutes.
Yes me too. My bills are not very high anyway, and I’d never get to upgrade if it wasn’t subsidised.
I think the subsidies should go in places like the UK, Ireland, places with developed networks – I used to spend ages thinking about which phone I would get when I upgraded, but for the last couple of years I haven’t bothered, all new phones have everything I want (the ability to make phone calls and send the odd SMS)- in an ideal World I would still be using my Ericsson T28 or T68i the 2 best phones I have ever owned.
Cheaper calls would be much better – including 08xx numbers from your inclusive minutes and cheaper global roaming charges. I suppose on longer contract periods they do pass on some of the discount in terms of a line rental discount, but not enough.
I no longer have a land line, use T-Mobile’s web ‘n’ walk for Internet access at home and would much rather have lower call costs than changing my phone every year.
Although I think it would produce major changes in the dynamics of the market I would favour a move away from handset subsidies.
They completely skew the market and very few people understand the true cost of handsets. And I certainly do not understand how much cheaper calls would be without subsidies
keith
Would it be crazy to think that networks should offer the option? Much as any high-end phone user (myself included) would love it, I do remember a time when I really struggled to come up with the money for a new phone and I’d hate to think that people trying to get on the phone-buying ladder would have another massive jump to make.
(I really make phones sound like property there, don’t I?)
I guess its better if we have the option from the carriers.
1. Either a cheap data and minutes plan or
2. A subsidized handset.
Its better to have options always.
After all who doesn’t love options?
It’s an age old discussion. Personally I’d rather have cheap calls and the option to buy my own handset that I can move from one network to another.
I think that @Gav’s suggestion is good also. Offer two rates:
1) “bring your own handset” with cheaper calls
2) subsidized handset with slightly more expensive calls.
Time will tell what people want..
Pat, there is a second thread to your discussion that you seem to be ignoring. If there were unsubsidised handsets then customers could chose the handsets that suits their needs. From personal experience with all the UK carriers, this often leads me without data services as ‘their network doesnt support the XXX handset’.
At the moment, they lean heavily on their own crippleware loaded handsets and ignore people like yourself that want handset choice.
Anything that could improve settings and the pitiful performance of technical support at carriers is welcome in my book.
Since I buy my own handset – cheaper data and cheaper calls to local, national and International numbers please…
Pat–
This is a great idea, the problem is that telcom companies aren’t in business to make customers happy. Well sure if it adds to their bottom line then fine, but the subsidies are just a marketing scheme. If the average user pays $70 a month for mobile service (and that’s low compared to most people I know after you count add-ons) then the cell phone company will have recouped their subsidy in 3-4 months. We’re also talking about a business that has a relatively low overhead and high profit margin, they wouldn’t make half as much money by dropping the wireless cost 50% so they have very little incentive to do so. At least here in the US the upgrade prices aren’t nearly as highly subsidized as if you were opening a new account, so they figure that once they lock you in as a customer you won’t want the hassle of switching providers… especially since it sometimes takes several days (that you can’t use your phone) to “port the number” to a new carrier.
You know they say… if you want something done well do it yourself…
I’m sure its ridiculously expensive to start a new national carrier but… its an idea…
Slainte,
Craig
the issue is why don’t savings get passed on to irish consumers anyway. So, i want BOTH.
This could be an interesting move. It could be a start of the transformation of the mobile phone industry – shaping the customers perception of mobile use and encouraging them to make more use of the mobile services in a way that early adopters use them now.
Would they really go for a model like that. I find it hard to think that the telcos wouldn’t screw us in every way they can. They already have tiered tariffs in place that increase or reduce the level they subsidise handsets, and you don’t save a huge amount.
If O2 can afford to give payg customers free talk and text for 30 quid a month, why can’t they give that to bill pay customers (even at a slight premium)…
Personally though, I’d much prefer to pay full price for a handset and get cheaper calls/texts/data, but I’m not conviced we’ll ever get there
If the networks drop the subsidized handsets, I’d say they would continue to sell locked nearly full priced handsets and then make a token call charge price drop of no real savings to a huge marketing blitz making everyone think they are great saving everyone hundreds!
Sure we’re all Irish and gullible!
I’d agree with you if it was the case that subscription costs fall to suit but the answer is they don’t. Like Pat I buy unlocked handsets because of travel needs. Even so shelling £550 for the N96 put me in nose bleed territory.