Adam Posted June 12, 2008 Share Posted June 12, 2008 I think it makes sense all around- the democrats and republicans should be happy about eliminating early termination fees. Makes things easier on the consumer and makes the cell companies make their market more competitive as well. Should result in better technology at lower prices! Link to comment Share on other sites More sharing options...
Chilly Posted June 12, 2008 Share Posted June 12, 2008 I think it makes sense all around- the democrats and republicans should be happy about eliminating early termination fees. Makes things easier on the consumer and makes the cell companies make their market more competitive as well. Should result in better technology at lower prices! Nope, it'll cause the price of cell phones to go up. Without early termination fees, the Cell providers have no real reason to discount cell phone prices anymore. Link to comment Share on other sites More sharing options...
Adam Posted June 12, 2008 Author Share Posted June 12, 2008 Nope, it'll cause the price of cell phones to go up. Without early termination fees, the Cell providers have no real reason to discount cell phone prices anymore. You don't think with the option to just switch that competition will increase? Link to comment Share on other sites More sharing options...
Chilly Posted June 12, 2008 Share Posted June 12, 2008 You don't think with the option to just switch that competition will increase? Sure it will, just in a different way. Phones are currently subsidized by the cellular companies in exchange for a 2-year contract - which is why they are so cheap. Once that subsidization goes away, cellular phones will increase in cost, as the phone companies won't be able to make up the loss they take on the subsidized phone over the course of a 2-year contract. Now, I took you saying "better technology at lower prices" to mean actual cell phones, since your topic is talking about the "cellphone issue". If you were referring to cellular rate plans and coverage, competition should cause that to get better somewhat as carriers try to distinguish themselves from each other. Link to comment Share on other sites More sharing options...
Adam Posted June 12, 2008 Author Share Posted June 12, 2008 Sure it will, just in a different way. Phones are currently subsidized by the cellular companies in exchange for a 2-year contract - which is why they are so cheap. Once that subsidization goes away, cellular phones will increase in cost, as the phone companies won't be able to make up the loss they take on the subsidized phone over the course of a 2-year contract. Now, I took you saying "better technology at lower prices" to mean actual cell phones, since your topic is talking about the "cellphone issue". If you were referring to cellular rate plans and coverage, competition should cause that to get better somewhat as carriers try to distinguish themselves from each other. I guess it makes sense- pay a bit more for the phones, but less for the service. If the service improves, I guess that could definitely be worth it. Now, if they would just start using satellites instead of towers.........I hate driving through no coverage zones! Link to comment Share on other sites More sharing options...
Chef Jim Posted June 12, 2008 Share Posted June 12, 2008 Oh I thought this had to do with your ten year old cat fluffy needing one. Carry on. Link to comment Share on other sites More sharing options...
Adam Posted June 12, 2008 Author Share Posted June 12, 2008 Oh I thought this had to do with your ten year old cat fluffy needing one. Carry on. Fluffy got fried plugging in the phone charger......it was awful Link to comment Share on other sites More sharing options...
Boatdrinks Posted June 14, 2008 Share Posted June 14, 2008 Nope, it'll cause the price of cell phones to go up. Without early termination fees, the Cell providers have no real reason to discount cell phone prices anymore. No it won't. Cell providers don't make phones, they just resell them. You can buy any kind of cellphone unlocked on Ebay for a good price. This won't change. Only the folks who buy overpriced locked phones from carriers will pay more. Link to comment Share on other sites More sharing options...
In-A-Gadda-Levitre Posted June 14, 2008 Share Posted June 14, 2008 No it won't. Cell providers don't make phones, they just resell them. You can buy any kind of cellphone unlocked on Ebay for a good price. This won't change. Only the folks who buy overpriced locked phones from carriers will pay more. Bluefire is right (wow, am I really saying this???), the cell carriers subsidize the phone cost from the manufacturer because they can count on at least two years of service revenue or a big termination fee. The fact that some people buy and sell (mostly used) phones on eBay is noise, although maybe more phones might end up there if lots of people switch plans on a regular basis. The vast majority get their phones from the provider, probably more than 1000:1 Churn is a killer for service industries like cell phones, so it's hard to say what they will do to retain customers, but continuing to subsidize the phones is a huge liability. I'm guessing monthly costs will go down somewhat, or adding services like free web access with basic voice, but the cost of phones will go up. Link to comment Share on other sites More sharing options...
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