Balance of Power: Carriers vs Consumers

[pc747]

A few months ago I talked about how the Nexus 6 had the potential to shift the balance of power more in the favor of the consumer. Overseas people buy their phones and then choose the carrier vs here where we choose the carrier and then buy the phone. Having devices that are unlocked and can be used on any US carrier could allow the consumer to dictate some of the terms that are found through carriers now. Of course there are a number of other factors such as carrier availability in different area, but if a carrier know that next month they could lose half their customers at the drop of a dime they are more likely to concentrate on better service plans, customer service, and more. Unfortunately it will take more than the Nexus 6 to shift the balance of power. We will need more manufacturers to do the same (ie Galaxy devices, HTC, Moto, iPhones, etc), customers willing to forgo subsidized phones in an effort to challenge the market, and a store willing to sell a one device for all version (ie a Best Buy). As of right now I feel that the carriers still hold the cards as they know consumers want subsidies. Plus majority of the customers that go into the store looking to buy a phone do not have a clue about carrier unlocked vs locked and as a result "it's business as usual".

Do you feel the balance of power is more in favor of the carriers or the consumers?

Do you think it matters or are you satisfied with the current landscape now?

What would you like to see changed (if anything)?

 

[Ollie]

Most phones are sold unlocked. The majority of people cannot afford the exorbitant prices that are asked for these devices so the carrier subsidies are most often sought after.

I would like to see plan rates plummet. There is absolutely no need for the big 3 to be charging what they do other than for greed.

The U.S. has the highest plan prices out of all of the countries I travel to and often times you get far less out of the deal.

 

[pc747]

The majority of people cannot afford the exorbitant prices that are asked for these devices so the carrier subsidies are most often sought after.

^So very true. The initial sticker price is what scare people in to locked devices, that and we really do not have a wide list of unlocked devices that work on all carriers LTE networks. Even phones that are sold unlocked majority only work on AT&T or T-Mobile's HSPA+ network and not their LTE networks.

 

[Ollie]

I've been using unlocked phones for years. Mostly due to the nature of my job. Some of it because I always wanted the Exynos versions of the phones I purchased.

The Note Edge is the first phone since the Note 1 that I have purchased from a carrier in the U.S. and although the price was higher than the average phones I still bought it full price.

Other than the Samsung Perks and the 50% off accessories (again through Samsung) I didn't gain anything else from paying full price. Overseas I would have gotten much more from whichever vendor I bought the phone from...6 months of free data, free accessories up to half of the cost of the phone, etc.

There really aren't any bonuses to purchasing phones outright in the U.S. If I hadn't have switched over to Tmobile during this round of phone purchases I would not have bought a branded phone again.