I Am Bismark

I don’t really understand how the whole “subsidized phone” thing works. For example, the unlocked Nexus One is $529. The T-Mobile subsidized plus two-year contract version is $179, a $350 difference.

If I buy the unlocked phone and the T-Mobile “Even More individual 500 Plan”, does that mean I only have to pay $79.99 - ($350/24) = $65.40 a month? Can I get that exact plan without a contract? If I do sign a contract, can I end it without an early termination fee? As far as I know, the answer to each of those questions is no.

If the price of a subsidized phone is built into the contract price, why can’t I get a cheaper monthly plan without strings attached if I buy an unsubsidized phone? Everyone always says that Americans only want subsidized cheap phones, but I think the real reason no one purchases phones for full price is because there is very little incentive to do so. The wireless carries have made sure of that, since long contracts allow them to boast about customer “churn” instead of addressing how crappy their network is. Lame.

UPDATE: Nevermind, I need to research before I start blabbering.

- Archive -