Wireless Carriers Just Can't Quit the Free-Phone Offers (bloomberg.com) 18
Just when some wireless carriers were trying to move away from phone giveways, T-Mobile upped the ante on Thursday with a deal offering new customers as much as $1,000 if they switch. From a report: The second-largest U.S. wireless carrier said that starting Friday consumers who bring a bill from their current provider to a T-Mobile store can get a prepaid debit card for any remaining amount owed on their phone, up to $1,000. Rivals AT&T and Verizon reported stronger-than-expected subscriber gains this week after using phone giveaways to help prime the pump in the third quarter.
Who buys a phone from their carrier? (Score:2)
That's such a weird old-fashioned idea, buying a phone when you sign up for service, and paying on it together with the monthly service charges. Are there still significant numbers of people doing that?
Re: Who buys a phone from their carrier? (Score:1)
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In the USA, yeah. You can't throw a rock without hitting a carrier's store, and even the major prepaid brands (Boost, Cricket, and Metro) have their own branded (and carrier locked) phone stores.
Finance agreements are the new two-year contracts. Fancy marketing spin is the only new innovation in wireless, the deals are all still the same old, same old. "Sign up for overpriced service and we'll give you a discounted phone" (now in the form of monthly bill credits on the finance agreement).
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That's such a weird old-fashioned idea, buying a phone when you sign up for service, and paying on it together with the monthly service charges. Are there still significant numbers of people doing that?
Probably more than you think. I just got a new phone today. A Note 20, to replace my 4 year old Note 8, which itself replaced my (then) 4 year old Note 3, and so on.
Got a good price on the phone, financed at 0% for 2 years with a 2 year contract. I could have just bought an unlocked phone outright and done pay as you go, but the savings are far from huge.
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I don't know how many people do it. I suppose it depends on the phone they're buying and the promotions being offered at the time. But at one point, if you wanted a Google Pixel phone, it was only available through Verizon [cnet.com].
And if you use a prepaid carrier such as Cricket Wireless, Metro By T-Mobile, Boost Mobile, Total Wireless, or Straight Talk and you can only afford a mid-range or lower range phone, it's usually easier to get one directly through them. At least that's what my elderly neighbor does.
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That's such a weird old-fashioned idea, buying a phone when you sign up for service, and paying on it together with the monthly service charges. Are there still significant numbers of people doing that?
Now? Anyone on Verizon. I could NOT get a verizon phone activated with them unless WE purchased it from them. It was madness.
Yes, I agree that's probably not legal, but my poor 80 year old dad just wanted a new phone and I had gotten him one.
The oddest thing was that the disconnections people were the few VERY on the ball people who carefully helped him unwind each of his devices in the cheapest way.
That's not a free-phone offer... (Score:3)
This is not a free-phone offer:
Just when some wireless carriers were trying to move away from phone giveways, T-Mobile upped the ante on Thursday with a deal offering new customers as much as $1,000 if they switch. From a report: The second-largest U.S. wireless carrier said that starting Friday consumers who bring a bill from their current provider to a T-Mobile store can get a prepaid debit card for any remaining amount owed on their phone, up to $1,000.
It is an offer to buy out your existing contract with another carrier.
Rivals AT&T and Verizon reported stronger-than-expected subscriber gains this week after using phone giveaways to help prime the pump in the third quarter.
That is a free-phone offer.
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It is an offer to buy out your existing contract with another carrier.
1. Sign up for AT&T or Verizon and finance expensive phone.
2. Switch to T-Mobile.
3. Profit!
Okay, in reality there's probably a trade-in required or some other small print to prevent people from doing exactly this. T-Mobile's postpaid plans aren't exactly cheap anymore, and their service is still kind of shit in places, so this isn't really a fantastic Slashvertisement.. er.. I mean offer.
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AT&T and Verizon weren't offering free phones either. You had to sign up for a service plan with the carrier to get the discounted phone, and the discount was done through monthly bill credits. If you canceled the service, you had to pay off the remaining balance on the phone.
A free phone would have any requirements like that.
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That should be A truly free phone would NOT have any requirements like that.
There is no free lunch. (Score:3)
It does not have to be expensive (Score:2)
We have been using Consumer Cellular for years now. Our bill was usually $25 to $27 or so. Some months ago, our phone had problems and my wife called to buy a new phone. It cost about $35 and they reduced our monthly rate to $18.89 for unlimited calls. And maybe texts, but we do not send or receive SMS.
Competition are good! (Score:2)
Cheaper, better services, etc.
We actually stopped this practice in Canada. (Score:2)