[akayareal]

Upfront price plays a big factor it. By pricing it reasonably ($199 for a smart phone) you can also convert dumb phone users that were only using phones for talk or talk and text. Trust me, when you go to upgrade and you see that even with your upgrade discount, the phone cost more with the discount than the phone that you were going to get without discount, you dont even look in that direction.

I dont expect to get people that only upgrade to a free phone but those that dont mind paying $100-$150. This is going to be the new flagship phone and the flagship is supposed to bring in new subs. It makes it much easier to bring over a family of lets say 4 to a new line when your paying $199 for one phone and lets say $100 each for the other 3 as opposed to having to pay $350 for 1 phone and $100 each for the other 3.