Quote:
Originally Posted by Eric5273
The only downside of this ruling for consumers is that it will lead to an increase in phone prices. Right now when you buy a phone, the carrier heavily subsidizes it assuming they will make up the difference on the back end from your subscription. If they run a larger risk that you will leave and use another carrier, then they will be forced to either charge more, or lock you into a longer contract. Up in Canada all the carriers demand a 3 year contract wiht a new phone. We could be looking at that soon enough.
|
You are EXACTLY right. Carriers will simply reduce the subsidy to account for the risk that you will leave them for a competing carrier. This new rule does nothing for the consumer.