[ale] [OT] Time for a Cell Phone Change

[Chris Fowler]

On Fri, 2011-04-29 at 19:02 -0400, Greg Clifton wrote:
> Chris,
> 
> 
> I've been with V forever, the $350 cancellation fee is rather new
> (like in past 1-2yrs.), in the past it was much less, though I don't
> recall, maybe $100 or $150? I'm not fixing to believe that these new
> fangled smart phones are THAT much more expensive than the earlier
> dumber ones. I'm in the computer hardware business and my mantra for
> years (a corollary to Moore's Law) has been "Better, Faster, Cheaper
> each Iteration." I am convinced the same thing holds for cell phones,
> else, how could Metro sell a smart phone for $200 or less with NO
> contract???? The way I see it, Verizon has something to fear from the
> likes of Metro and perhaps other prepaid plans and therefore wants to
> lock customers in to a post-paid plan via the exorbitant cancellation
> fee.

I agree.  Every time a new iPhone is released someone takes it apart and
compiles a cost of goods on it.  I don't think it has past $200.  

IMO the problem is subsidizing the phone.  If we (US) did not do that
you'll see prices drop as product only gets sold to those that have the
money.  

A Droid X at $19 is very tempting but at $500 I'll walk on by....


I have mifi I use for work.  I have an iTouch 8GB 2nd Gen.  That is how
I have mobile Internet.  It works but requires and extra device.  IT is
nice that others can jump on the mifi and we use it a trade shows.   I
wanted to do this experiment before I got a droid.  I toyed with the
idea of getting a 2yr vs 1yr agreement and the sales rep talked me into
a 2yr with me understanding that the cancellation fee would drop $5/mon.
For our phone my wife does it all and I'm just a member of the family
plan.  I asked her to ask Verizon specifically if the cancellation fee
for the X really dropped every month or if it was static.  I still do
not know.  We had a sales rep drop his personal Droid X in the toilet
and they wanted $350.  He transferred his account to an old Blackberry
instead.   I could have got the X on the $19 but Verizon wanted me to
pay $90 to get out of my Env3.  They would not even extend my contract
for 5 months.  The rep on the phone said: "Just wait, new phones are
coming out."

Being just a member on a family plan sucks because I can't argue a case
for me bailing and getting on my own plan :)  My part of the bill is
only $10/mon!  We've been with Verizon for many years but that really
does not buy you anything.  There is no customer retention and really no
negotiation.