Comments on: Walt Mossberg wants the US Government to sort out mobile industry http://www.mobileindustryreview.com/2007/10/walt_mossberg_wants_the_us_government_to_sort_out_mobile_industry.html Daily news and opinion for 250,000 industry executives and mobile fanatics Wed, 15 Feb 2012 15:14:00 +0100 hourly 1 http://wordpress.org/?v=3.3.1 By: Ricky http://www.mobileindustryreview.com/2007/10/walt_mossberg_wants_the_us_government_to_sort_out_mobile_industry.html/comment-page-1#comment-136969 Ricky Tue, 23 Oct 2007 18:52:54 +0000 http://www.smstextnews.com/2007/10/walt_mossberg_wants_the_us_government_to_sort_out_mobile_industry.html#comment-136969 What's more is that we have both CDMA and GSM networks here in America, and they're both just as big in terms of coverage. Thus, you'd really need a CDMA/GSM handset. However, the CDMA operators in the States both opted to not use R-UIMs (SIM cards to those on GSM) so each handset is still activated by the ESN, similar to how it was with TDMA. This only adds to consumer confusion, "So these phones will work with T-mobile or AT&T, but these will only work with Verizon and Sprint?" Also as you mentioned there's so much else going on in the marketplace. Since our operators give us all kinds of free minutes (free nights and weekends, free Mobile-to-mobile, nights starting as early as 6pm!, etc) they only subsidize the handsets by ~$150 for a 2-year contract. Personally, I've suggested in several different forums that at least ONE carrier begin to offer a monthly discount rather than a subsidized handset. Thus, when you pick your phone, you have 2 options: 1. Pay $150 for the phone, 2 year contract, $40/month 2. Pay $250 (or full retail) for the phone, 2 year contract, $40/month with a 10% discount for the length of the contract. When your contract expires, so does your discount. To get another discount, sign another contract. That way, people get accustomed to buying handsets at full price and the manufacturers have more reason to innovate, consumers are more likely to renew their contract to get a discount as opposed to a new phone, and the carrier is basically getting the same overall income from the consumer. What’s more is that we have both CDMA and GSM networks here in America, and they’re both just as big in terms of coverage. Thus, you’d really need a CDMA/GSM handset. However, the CDMA operators in the States both opted to not use R-UIMs (SIM cards to those on GSM) so each handset is still activated by the ESN, similar to how it was with TDMA. This only adds to consumer confusion, “So these phones will work with T-mobile or AT&T, but these will only work with Verizon and Sprint?”

Also as you mentioned there’s so much else going on in the marketplace. Since our operators give us all kinds of free minutes (free nights and weekends, free Mobile-to-mobile, nights starting as early as 6pm!, etc) they only subsidize the handsets by ~$150 for a 2-year contract.

Personally, I’ve suggested in several different forums that at least ONE carrier begin to offer a monthly discount rather than a subsidized handset. Thus, when you pick your phone, you have 2 options:

1. Pay $150 for the phone, 2 year contract, $40/month
2. Pay $250 (or full retail) for the phone, 2 year contract, $40/month with a 10% discount for the length of the contract. When your contract expires, so does your discount. To get another discount, sign another contract.

That way, people get accustomed to buying handsets at full price and the manufacturers have more reason to innovate, consumers are more likely to renew their contract to get a discount as opposed to a new phone, and the carrier is basically getting the same overall income from the consumer.

]]>