Quote:
Originally Posted by monkeyboy
the obvious reason is that Sprint's subsidy for the TP2 is at least $100-150 less than for a Hero and therefore Sprint can afford to let it on a legacy F&C or even SERO. A Hero, Pre etc OTOH is sold at such a low price (high subsidy) to compete with the $200 iPhone, that Sprint MUST recoup that subsidy by forcing the Everything plans with these phones. Verizon can sell the TP2 at $200 because its forced plan rates *are* also higher than SERO/F&C to allow recouping that subsidy (but take note of its outrageous ETF).
These kinds of devices like the TP2 actually cost $600-800. Supposing you do sell them contract for $200. You need to recoup at least $500-600 before you break even. That's $20-25/mo for 2 years. Exactly how can Sprint actually earn any money on $30-20=$10/mo for voice/text/data? That's why a $500-600 subsidy (Pre, Hero, etc) NEEDS to go on a $50-70/mo plan.
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I follow the logic of what you say except for where you say " These kinds of devices like the TP2 actually cost $600-800." Thats the entire problem right there, there's no reason these devices should ever retail for such an amount! I can now buy 2 PS3's for that same amount lol. And therein lies the problem with the whole celluar system, the costs are grossly over-inflated for the services rendered.