Handset Subsidies a Thing of the Past?

[jonsie]

Interesting statement by Ronan Dunne regarding future handset subsidies. Are they going to be removed completely and will the independent retailers be laughing all the way to the bank?

With their parent company Telefonica Spain removing subsidies in March, is that something we can expect from O2 and the other major networks?

http://www.mobiletoday.co.uk/News/22269/Dunne__Subsidies_%E2%80%98need_to_change%E2%80%99.aspx

[Anonymous]

I remember many years ago when you'd get "get this handset for 1p" in the shops, people have gotten very used to having a free phone when they upgrade, it's so ingrained to people that they get a free upgrade.

Problem is as handsets get more expensive, £500 and so on, then unless people want to pay more, which they don't, then they're going to have to start paying for them. Of course the handset isn't free, looking at the difference between a handset contract and a simplicity one shows that, but I think it will be a while before people come round to the idea of actually paying for a phone.

[Anonymous]

Im a sim only customer, needed a new phone as old one died after 7 years service so went in to a well known phone retailer ( NOT an O2 store )

I could get the phone I wanted on a PAYG deal for £200 + the £10 top up with a new sim card OR I could pay £350 for a sim free handset.

Where is the logic in that?

I just wanted the handset so I could stick my current O2 sim card in to it.

It wasted a new sim card as I just transfered the £10 top up over to the gf's phone as she wasnt in store with me at the time & the retailer insisted I left with a new topped up sim card.

[anticpated]

Yep, you have to top-up in case you are stealing it or some stupid nonsense.  The real reason is networks subsidise Independant mobile retailers every time they sell a handset with a contract whether it be PAYG or PAYM.

So a £250 handset can become a £200 handset just by choosing a network or a free as long as you take out a 18 month contract. The important thing to remember I think is, you are not really buying a mobile phone as such it's a contract.

There's nothing to stop you buying a SIM free phone online and sticking in your PAYM SIM in it. I done this for my last 2 phones.

[jonsie]

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@anticpated wrote:

There's nothing to stop you buying a SIM free phone online and sticking in your PAYM SIM in it. I done this for my last 2 phones.

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Yes, the only way for me.

[ewanrw]

Saw this article and tweeted about it saying I fully agree. They took a hammering on the S3 and their margins must have been low after wages and support costs etc.

I also think it indicates that anyone who reckons they'll get a cheap iPhone 5 deal might be in for an unpleasant surprise.

ewan

[MI5]

I'm not looking forward to the hundreds of "why won't O2 give me a free iphone5 for £10/month" threads.....

[jonsie]

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@MI5 wrote:
I'm not looking forward to the hundreds of "why won't O2 give me a free iphone5 for £10/month" threads.....

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Brace yourself, it's almost that time of year. There will be multi-threads of weeping and wailing, anger and frustration and general whinging! Glad I'm away for most of September.

[adamtemp64]

I hope that all threads like that will be merged or locked happens every launch and I tend to just ignore them.

[jonsie]

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@adamtemp64 wrote:

I hope that all threads like that will be merged or locked happens every launch and I tend to just ignore them.

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Agreed!