Here it is for the confused people of what subsidized means.....

Discussion in 'Android General Discussions' started by cybertec69, Jun 16, 2012.

  1. cybertec69

    cybertec69 Silver Member

    Apr 19, 2010
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    Staten Island, NY
    [​IMG] Originally Posted by kennykid
    Okay SO.

    I have a 4G Droid Charge on a plan with 2 other people, on with an iPhone 4, one with a Droid 2.

    I'm due for an upgrade and want the GSIII, I understand that if I pre-order correctly I will keep unlimited data for at least 2 years. As for my other 2 lines, is there anything I need to make sure they do/don't do? What happens after say 9 months when the droid 2 wants an upgrade? If they use and upgrade and get a subsidized phone, will it affect my unlimited data since we are all on the same plan?

    Yes, they will need to purchase the phone at FULL price, read on of my posts in the SG III forum, so you can understand how this works. Ok here it is if you don't want to search for it.
    It is all explained for you right here, enjoy.
    [​IMG] Originally Posted by kparks

    I got a question when I get my gs3 I plan on selling it on eBay do I need to do anything with the sim I'm assuming I ship everything unactivated... I'm keeping my tbolt!! And when I order my next htc phone :) ill just get another sim

    When you order your next phone you will have to pay full price for it, don't forget the SG III you are planning to sell "which you bought at a subsidized price" still belongs to Verizon for 2 years "until it is payed off", reason for them locking you in for another two years is so they can recoup the additional $350 for the original price of the phone, someone has to pay Samsung for the device, so by them giving you a break so you can upgrade to a brand spanking new device at a fraction of said devices full retail cost, they lock you in so said device will be paid off in full, THEY "Verizon" are making the payments for YOU "Joe Blow" at a 2 year rate, of course it is coming out of YOUR account, it's just so you don't have to pay the full price up front, but after two years the phone is payed for BY YOU, and then is yours TO DO WHATEVER YOU WANT WITH IT, so you can continue on a month to month basis, unless you buy another subsidized phone, you again will be locked in for two more years " so you can pay for the phones full price at a two year rate, it's like a loan, a two year loan".

    Reason Verizon locks people in for two years is so they can recoup the money's for the phone that was sold to you INITIALLY at a subsidized price, someone has to pay for the phone, at it sure is not going to be Verizon "Verizon is only a service provider" you pay for the service and they provide it, that is why if you BUY a phone at fully price, Verizon can not lock you in for another two years "since device is already payed for by you", no risk for them "since now they are ONLY providing you with their service", another reason they bang you for that $350 early termination fee "the termination fee goes down the longer you have the phone", so in case you decide to leave, they still get the money so they can pay off the phone to whom ever vendor they purchased it from. Samsung, LG, HTC, Sony Apple are not in the charity business.

    But the main reason for subsidized phones on all the carriers is that it is the ONLY way for them to get people to initially join their network and use their service, this plan was in conjunction with the handset manufacturers, as they knew it would be real hard to get 90+ percent of the population to fork over $500 plus for a new device, so the only way for the manufacturers to be able to sell the phones and the carrier to be able to sell his services, they had to come up with a plan, we Verizon will buy your "manufacturers" Phones at full price, but will only pay them off to you on a two year loan program, and that two year loan is passed on to you the consumer who just got this nice brand spanking new smartphone at a starting price of $200, but YOU will pay off the difference in two years time to Verizon, so in turn Verizon can pay off the phone manufacturer. No business is in the charity business, now if you buy the phone outright, there is nothing Verizon can do, and they could care less, actually this is the best way for them, since they don't have to hold the bag for two years before beign able to pay off loan to phone manufacturer, all they have to do now is what they are actually in business for, and that is to provide you with a service. Now if you figure 60 million of their subscribers have smart phones, at subsidized prices, that mean 60 million X $350= $21 billion that they owe the phone manufacturers, and that is only for smart phones, now if you figure the rest have just regular phones, I would guess $100 X 40 million subscribers= $7 billion, now you do the math.

    And in regards to your SIM question, I believe the new LTE Sim is build into the chipset, that is the way that Qualcomm will be going with the S4 chipset, it uses less power this way.

    Sent from my HTC Rezound using Droid Forums

    Last edited by cybertec69; Today at 11:03 AM.

    Sent from my HTC Rezound using Droid Forums
    #1 cybertec69, Jun 16, 2012
    Last edited: Jun 16, 2012
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