Observation for the weekend – the real effect of phone subsidies

I think most of us who complain about the operators and their subsidies might really have a blindspot. We are looking from the vantage point of power users who know what phone they want, how open they want it, what services and plans, and how to hack it.

What about everyone else?

Everyone else wants something cheap or free, that makes decent calls, and looks pretty. Quite different than the average (though significantly less numerous) power user.

I mentioned recently that this past 01 April, the Finnish operators were allowed to bundle phone plans with phones. I wondered if it was a step backwards or if we were the ones actually wrong.

Eh, maybe we are wrong.

Why do I say this?

Well, in the past month I have seen a ton more 3G smartphones (the main ones that are being bundled). Even a friend who does not get excited about advanced phones was quizzing me.

So, let’s think about this:

– Is it better to make folks pay full price up front for an advanced 3G smartphone that might go for over 500€, or,

– Is it better to help them upgrade from their four-year old Nokia 3330s and bring them to the modern world?

I’m sorry, I’m starting to side with the operators on this one.

But wait – this strategy is only working because it’s the advanced phones only, as far as I know, that can be bundled. In other countries, all phones are subsidized. So, maybe we can find the middle ground and subsidize the advanced phones to effect a roll-over to more functional phones.

What do you think?

BTW, this weekend is the annual bacchanalia here – Vappu – Finland’s May Day. Another wonderful three-day weekend. See ya all Tuesday!

1 Comment

  1. It can be a positive thing or a negative thing. If the operator has near-complete channel control, like in the US, then there is no alternative than the operator channel. US general does suffer from older, constrained phones (with bluetooth disabled, etc.). If there is a healthy mobile phone retail channel, and users have a real choice, then operator subsidies isn’t a bad thing, especially if they are trying to move people to newer phones with better services.

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