Carrier Subsidies Making Customers Pay More Than Smartphones Actually Cost

The recent debate to fire up carriers is the impact of subsidies for smartphones.

According to reports, the top carriers pointed out that the clients who pay discount prices for their high-end smartphones might disregard the technological innovations behind the devices.

Cole Brodman, T-Mobile Chief Marketing Officer, believes that "purchasing phones at steep discount (subsidized by wireless carriers) devalues the incredible technology innovations coming to market. It distorts the cost of devices and creates an uneven playing field for OEMs, carriers and retailers alike."

In their efforts to convince the customers about the inherent value of the technology, T-Mobile representatives announced plans to convince the subscribers to keep their smartphones for longer.

However, make no mistake about the carriers' communication strategy. Even with subsidised costs, the users end up paying more than the shelf price for their devices.

The difference is that the small payments during the two years of contract are less obvious.

The carriers don't cover themselves the costs required by manufacturers, their users do. Moving away from the subsidy-only model is a strategy that has its caveats.

Source: WebProNews