Subsidized Laptops With Locked In Wireless Broadband Contracts
from the good-or-bad? dept
A few years back, after noting the trend of laptop companies to start building in cellular data modems into their laptops, we wondered when it would reach the stage where mobile operators would subsidize the cost of a laptop, just as they subsidize the cost of mobile phones in many cases. In early 2006, we started to see such subsidized laptops go on sale in Europe, with the mobile operators selling the laptops directly for well below list price, as long as you bought into a long term data plan. The whole idea seemed a bit strange, as mobile operators have long ranted long and hard about how much they hate, hate, hate subsidies, and how they wish they could do away with them. So, why add them to laptops?However, the idea has now traveled over to the US as well, in a deal between Acer, Radio Shack and AT&T allowing people to buy an Acer netbook for just $100, so long as they agree to a 2 year $60/month contract for an AT&T mobile data plan. It's still a little confusing as to why the mobile operators are agreeing to this, following so many vehement arguments against mobile phone subsidies, but perhaps they're finally realizing that those subsidies aren't such a bad thing when they get people using their services. Still, how long will it be until buyers start complaining about early termination fees for laptops like they do for mobile phones?
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Filed Under: contracts, netbooks, subsidies, wireless broadband
Companies: acer, at&t, radio shack
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Why contracts
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Only one porblem OneDisciple
If it were possible to simply buy a phone and take it to whatever carrier, then I wouldn't have a problem with that.
Te other issue is that usually the most desirable phones (iPhone, G1, etc) are given to carriers in an exclusive deal. So the only way to get one is to sign on the dotted line.
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Re: Only one porblem OneDisciple
Add into that the number of people whose credit is not the greatest anyway and you what you have is a mega-sized group of people who feel that paying that 60/1440 is a good deal.
and don't forget that with programs like Vonage, Skpe,Magic Jack, etc. these same people can make calls using that computer and data plan. so this will intrude somewhat in the (and how I hate to call it this!) "traditional" cellphone market.
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Re: Re: Only one porblem OneDisciple
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As Long As We Have A Choice
For some this might be an option. But there must be choice.
I want to be able to choose what works for me. And by the way, just because Europe is doing it does not mean that we have to do it also. We could create a better idea that really works for everyone.
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My Pap wanted a laptop
Too bad these things have a 9" screen.
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Where did people learn math?
How much is the internet service if you don't get the $100 laptop? If the monthly internet service alone is more than $47.71 per month, then it's a good deal, contrary to what the people with no math skills tell you.
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Re: Where did people learn math?
So, let's see, $350 computer + (24 x $10) = $590.
They can take their "2 year contract", fold it until it's all sharp edges, and shove up the wrong end of their one-way digestive system.
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Re: Where did people learn math?
Nevertheless, there is more to the story.
First, the consumer should be able to drop the service whenever they wish without facing any prepayment penalty. If companies can change their terms of service, as they wish, so should the consumer. If the company loses money selling the laptops below cost, too bad. (note I did not use the word "subsidy").
Next, these companies attempt to extend prepayment penalties even when you don't get a piece of real physical hardware that has value. For example Sprint said that we would have to sign-up for a new two year contract just to change our phone number! We said good-by to Sprint. Later, we were then informed through a class action lawsuit that Sprint made "errors" in their billing to us and that we were entitled to a $15 refund. But guess what - surprise, surprise - we would have to sign up for a new two year contract to get the refund. Of course we did not sign up. Clearly these "contracts" are more about locking the customer in and depriving the customer of their economic freedom than they are about "recovering" costs.
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Re: Re: Where did people learn math?
There are definitely some problems. Early termination charges for contracts for which no hardware was subsidized should be illegal. The charges should be pro-rated based on the remainder of the contract. And, the charges should not be allowed to extend for as long as they do.
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Re: Re: Where did people learn math?
first your contract is predicated on the use of that phone& plan, upgrading or original purchase of phone. Using your thinking I could go to T-Mobile sign up for a plan, get the G1 then bail out immediately. That would put TMO out of business, and the same for other companies.
Second the courts have already decided that a)changing terms of service is legal as long as there is not a material difference in cost or service during your contract time. That means that if you contract for 300 minutes at X price and overtime minutes at Y price for two years, that is all you pay. Once you pass that two year point your price can change. Upgrading your phone, pay services or insurance can legally trigger a new contract to obtain the best price for those items.
Third, changing your phone number is not a legally defined opportunity to materially change your plan/contract. I am sure some Sprint employee tried to do that because all telcom corporate policy is tied to the idea of locking you into a longer contract. However they cannot legally require a new contract on a number change. They can charge you a fee to change the number but not force you into a new contract.
Sprint is notorious for bad business practices such as that. TMO has the best rep and cust service rating of all of them and frankly I can change/add/delete services on line with them online at 3 a.m. and know that unless it is clearly marked as triggering a new contract there will be no additional charges. I Have been with them since their beginning and there has NEVER been one mistep in any upgrade or service request.
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I love stupid people
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Not the same...
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When I was buying my new laptop I asked sprint if I could have a built in card and pay some small fee to tie it to my account, but thay come back at me with a crazy high cost (40-60ish) instead of the 10-15 I pay for my phone that acts just like a wireless card.
Ultimatly I set my phone to connect to my computer via bluetooth when ever its in range which is MUCH cheaper then a data card.
The only way this system above could work is if the laptop was a mid-high end system, like a gamers laptop and the connect fee was low, or a one time charge.
Any cell phone rep out there, I would gladly pay 200 - 300 to have unlimited data on my laptop for several years.
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I was writing something up about this very thing
It just does not make sense to me. There were very good reasons why cell phones were subsidized, but those reasons do not apply here. Tell me what you think
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Something to think about
I'd check on limits before I signed up...
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AT&T not involved
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Data Contract limits
To be honest Qwest sold me the same thing, Unlimited 150kB/s with a price lock even, And to be honest, they kept there bargan and I have almost aways had that data rate (at least im not having fake packets reseting my connections)
The day anyone says something thay sold you isent quite what they sold you, is the day your free to brake your contract because the company already did.
Keep in mind im a power user, I use my home computer to stream video to my cell phone etc. So I really expect to get what I pay for.
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Try "
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RovAir OnDemand
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Aircard rental
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