Cell phone early termination fees illegal.
Joined: Oct 2000
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From: South Jersey
Originally Posted by airgate,Aug 1 2008, 12:11 PM
I agree...they can't cost that much to produce...but they really do cost that much to the carrier...I see invoices here all the time for many of our phones and the Motorola V8 (RAZR 2) is sold to us from Motorola for a whopping $329.
Online...with a 2yr contract, the phone can be had for $99. So, $230 is being subsidized over a 2yr contract. That's a lot of money.
Online...with a 2yr contract, the phone can be had for $99. So, $230 is being subsidized over a 2yr contract. That's a lot of money.
And I can't wait till people start complaining that phones are so expensive because the carriers stop subsidizing most of the cost. Just watch for what you wish for consumers!!
OCMJ, cell phone development isn't cheap. A lot of humans (making good money) put a lot of time and effort to come up with all these phones. Also, think of it this way, you're willing to pay $1000 for a computer that sits on your lap, but not $500 for a less powerful computer that you can carry anywhere with you? Because when you're carrying these latest cell phones with you, that's what you have, a computer.
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From: St. Louis, MO
Don't forget they have to pay for "me." 
And babyray is absolutely correct...as a carrier, we don't generally turn a profit before 12 months... The higher ARPU (Average Revenue Per User), the better...
With carriers, you'll pay attention to things like ARPU and CPGA (Cost Per Gross Add).
As a carrier, if you can keep ARPU UP and CPGA DOWN, you'll turn a profit.
And remember, making money is not evil...some folks seem to think companies should be breaking even...
And babyray is absolutely correct...as a carrier, we don't generally turn a profit before 12 months... The higher ARPU (Average Revenue Per User), the better...
With carriers, you'll pay attention to things like ARPU and CPGA (Cost Per Gross Add).
As a carrier, if you can keep ARPU UP and CPGA DOWN, you'll turn a profit.
And remember, making money is not evil...some folks seem to think companies should be breaking even...
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Joined: May 2005
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From: Orange County
Originally Posted by erik,Aug 1 2008, 10:27 AM
OCMJ, cell phone development isn't cheap. A lot of humans (making good money) put a lot of time and effort to come up with all these phones. Also, think of it this way, you're willing to pay $1000 for a computer that sits on your lap, but not $500 for a less powerful computer that you can carry anywhere with you? Because when you're carrying these latest cell phones with you, that's what you have, a computer.
The 2 year contract isn't a matter of the cell phone companies being profitable with phones not increasing in price- it's a matter of the service providers making money. I'm sure in an open marketplace, they'd find a way.
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From: Long Beach, CA
Originally Posted by vtec9,Aug 1 2008, 07:47 AM
I think he means protect the ****ing morons who don't take five minutes to read the ****ing contract. If you don't like it, don't sign up. If you don't want to pay early termination fees, don't ****ing sign up.. have fun paying $500 for that stupid blackberry. Next time I'll tell you how I really feel.
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From: Hawaii
I wonder what part of the state law they ae going off and how many other states this could effect. I remembered when Cingular and AT&T merged I switched providers because the could not meet me needs. AT&T wanted to charge me $250 for breaking my contract. I managed to talk my way out of the fee. I could forsee this effecting satellite TV companies and other businesses.
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From: Orange County
IMO, there is a simple fix to all of this. Let people buy the phone at "MSRP" with no contract or at the discounted price with one. I know it takes most cell companies a while before they turn a profit on a given customer, but think about it... an open market would probably mean no change in market share for each company. You'd think each would gain about as many as they lose. Give a choice between a $99 blackberry with a 2-year or a $399 blackberry with no contract. Odds are if you provide good service, the customer will stay anyway and the company will come out on top.
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From: New York
I've gotten out of contracts with all major carriers, and each time, the same exact way.
No one ever reads the contract, but there are plenty of EASY, and LEGAL ways to get out of one if you want to.
My only problem is, you can't sign up for service without a contract. Say I have no cellphone, and want to get ATT. If I have my own phone, I can't sign up without having a contract, and THAT is something I have a problem with.
No one ever reads the contract, but there are plenty of EASY, and LEGAL ways to get out of one if you want to.
My only problem is, you can't sign up for service without a contract. Say I have no cellphone, and want to get ATT. If I have my own phone, I can't sign up without having a contract, and THAT is something I have a problem with.