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by GrandMasterBirt
5863 days ago
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When working in a cellphone store, we used to make more money on the shitty Nokia 8830 phones because they cost us 70 bucks to buy, sell em for free with a $250 spiff. Thats more money than selling a phone for 100 bucks where usually the phone price is $300 - $250 spiff + $50 profit. Don't forget, when signing up for a contract they also charge you for line activation ($35) so they recoup their price rather quickly. About 5 years ago the standard contract was 1 year. Now 2 year minimum. Verizon does a "contract-less" deal where you get the SAME plan without a contract. But you have to buy the phone full price... Think about it. That deal is 100x better for verizon. All the profit, none of the cost. And it gets even better!!!!!!! Thats right, verizon phones are USELESS ANYWHERE ELSE. Basically use V phones for V, or throw them out. So DUH its just as good as a contract. I've yet to meet 1 person who realizes this. The only "deal" is at 22 months of the 24 month contract, the company will allow you to renew the contract without any activation costs for a 24 month extension starting at the 22 month period (or when u called) and they apply the full "discount". This is perhaps the only place where you get a deal. You may say "but ur in a contract" in the united states there are no real capabilities to take a phone and switch carriers, only in europe does this capability exist (hence the GSM movement). |
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You can get phoneless contracts which are much cheaper - either with no monthly charge (I literally pay nothing if I don't use the phone one month, and when I do it's €0.04/min or per SMS sent) or a very generous deal (1000 free minutes+SMS for €10-20 say). Prepaid is a little more expensive, 7-15 cents/min or /SMS seem to be the norm.
As for data, the rates vary wildly - I'm using prepaid at 2 cents/MB, but you can get €4 per started GB/month, or various contracts between €5 and €20 for some fixed amount of data, or unlimited data at €25+. They fleece you for > €1/MB if you don't have any specific data provisions in your tariff though.
For smartphones or netbooks, add €20-40/month, a minimum run time of 24 months, very inflexible conditions and at least one downside (for example, the most basic iPhone contracts often charge 25 cents per SMS, a rate that's otherwise unheard of).