Carrier Phone Subsidies
The cluster focuses on mobile carriers' practices of subsidizing phone prices through monthly contracts and fees, leading to no cost savings for users who bring their own devices or don't use carrier-provided phones.
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Explain to me, why wouldn't this merely result in the phone companies charging higher monthly fees?
Incredible. Now they charge you for NOT using your phone.
I have to pay more when I do not use their device? Crazy...
My monthly plan payment would not go down if I brought my own phone.
I imagine it's based on their pay-as-you-go plan.
Probably they have expensive contracts with carriers?
The carrier doesn't subsidize the price, its cost is amortized over the life of the contract. You are paying for the phone whether you know it or not.
I thought they were paying fees to Verizon.
fine with that as long as its the phone users who are being charged extra to sit there.
I assume the GP meant that the clause was in the original contract the author signed when getting the sim-card he's currently using. That contract might have a clause to the effect that smartphone usage with that SIM costs extra.