Light Reading Mobile – Telecom News, Analysis, Events, and Research
Sign up for our Free Telecom Weekly Newsletter
Connect with us
Comments
Current display:       Newest Comments First       Display in Chronological Order
jdbower
User Ranking
Tuesday August 21, 2012 8:40:55 AM
no ratings

jalawler, in Verizon-land the subsidy is about $10/month.  A MiFi device is subsidized and has a per-month fee of $20 whlie tablets are not and are $10 - both are dumb data sinks so I'm attributing the delta to the subsidy.  Feature Phones are both subsidized as well as have the voice overhead and are $30/month which places voice service at $20/month.  This meshes nicely with Smartphones at $40/month which breaks down to $10/month for subsidy, $20/month for voice access, and $10/month for data access.

I really hope they stop subsidizing MiFi devices soon, while upgrading a smartphone every two years seems like an eternity it's hard to imagine a MiFi feature that would make me lust after an upgrade.

jalawler
User Ranking
Tuesday August 21, 2012 6:41:34 AM
no ratings

Under the new Verizon and AT&T share plans, the lack of subsidy seems to me to be reflected in the cost per month per device. Granted, the higher cost of a phone includes usage as well, but it would make sense that part of the difference is the subsidy.

I'm one of those few who wants data on my tablet. I carry it with me most of the time. I prefer the larger screen for almost all purposes, from reading on the commuter train to Twitter and web browsing. The only reason I bought a smartphone was to combine the separate phone, iPod and ancient PDA I was carrying. If I could, I'd drop the data plan on it.

mendyk
User Ranking
Monday August 20, 2012 3:30:58 PM
no ratings

OK, but the discourse often defaults to criticizing carriers for high service prices -- as in the observation attributed to GigaOm about device subsidies. Operators have the right and the motivation to make a profit. I understand questioning the logic (or lack thereof) of certain market strategies, like tiered pricing.

Dan Jones
User Ranking
Monday August 20, 2012 3:09:30 PM
no ratings

It hasn't.

Looking at how the two dominant carriers in the US charge for 3G and 4G data on an important new class of device is right in our wheelhouse.

mendyk
User Ranking
Monday August 20, 2012 2:15:38 PM
no ratings

Just a general question -- when did LR become a consumer advocacy site?

SReedy
User Ranking
Monday August 20, 2012 1:32:56 PM
no ratings

GigaOm makes this point well...if consumers no longer have to "pay back" the subsidy to the carriers, then shouldn't data be cheaper?

SReedy
User Ranking
Monday August 20, 2012 12:43:38 PM
no ratings

I still think it is and will remain so for LTE tablets unless operators get less stingy with data or more creative on pricing.

Dan Jones
User Ranking
Monday August 20, 2012 10:30:39 AM
no ratings

Maybe Wi-Fi alone is the way to go for these data-hungry hippos?



The blogs and comments are the opinions only of the writers and do not reflect the views of Light Reading. They are no substitute for your own research and should not be relied upon for trading or any other purpose.