Im interested to see how the subscription works, and how it will differ from prepaid services. I know one of the biggest gambles with post paid service is the chance that the consumer will run up a huge bill and not pay it. Could this possibly be like a prepaid plan without the prepaid limitations which would allow you to go over your minutes, have free reign of adding additional services etc.
At first I would expect to see prepaid like prices on these plans or a middle tier between prepaid prices and contract prices. I am sure churn is a consideration with these plans, but if the consumers aren't activating and dropping everyother month it may not be an issue.
I am certainly not a fan of subsidizing cost of phones. Subsidizing always ends up costing the customer more because the equipment manufacturers can get by with charging higher costs for equipment that is then absorbed by the company and then pushed to the end user. Its like education costs or healthcare costs. The more subsidation that happens the higher the prices are hiked because they *can* be paid. They get to avoid true capitalization and competition. Certainly good to see a large carrier try to break out of the mold.
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Im interested to see how the subscription works, and how it will differ from prepaid services. I know one of the biggest gambles with post paid service is the chance that the consumer will run up a huge bill and not pay it. Could this possibly be like a prepaid plan without the prepaid limitations which would allow you to go over your minutes, have free reign of adding additional services etc.
At first I would expect to see prepaid like prices on these plans or a middle tier between prepaid prices and contract prices. I am sure churn is a consideration with these plans, but if the consumers aren't activating and dropping everyother month it may not be an issue.
I am certainly not a fan of subsidizing cost of phones. Subsidizing always ends up costing the customer more because the equipment manufacturers can get by with charging higher costs for equipment that is then absorbed by the company and then pushed to the end user. Its like education costs or healthcare costs. The more subsidation that happens the higher the prices are hiked because they *can* be paid. They get to avoid true capitalization and competition. Certainly good to see a large carrier try to break out of the mold.