Worrying News From The Netherlands, KPN and T-Mobile to cut handset susidisation |
  |
|
 Aug 13 2006, 07:21
Post
#1
|
||
 Editor Dude  Group: Moderator Team Posts: 1,712 Joined: 23rd April 2003 From: Leicester, UK Member No.: 4,973 Device(s): SPV M700 / E650  |
[teaser]
 Our man in NL, Peekie, has been keeping a watchful eye on a rather worrying story that could impact a lot of mobile phone users... For many years now, mobile operators worldwide have subsidised the cost of mobile handsets in order to attract more customers. This happens not only with contract handsets but also, to a lesser degree, with pre-paid handsets. For the Netherlands and Germany, however, this situation is changing.[/teaser] As of September, Dutch telecoms operator KPN will be stopping the subsidisation of all contract handsets. The reason? Well, they are of the opinion that the market has now become more adult and therefore subsidisation is no longer needed. This comes four years after they and four other Dutch operators were fined 88 million euros for mutually agreeing to stop the subsidisation of pre-paid handsets. Furthermore, T-Mobile Germany are also said to be taking a similar stance on the subsidisation of handsets. Could this be the reason for the higher-than-normal price of the Vario II? Will operators in other countries follow suit based on the success of this decision? Would you pay sim-free prices for a contract handset? Related links (in Dutch): -------------------- |
||
 |
 
|
||
|
Aug 13 2006, 07:43
Post
#2
|
|||
 Timelord Group: Posters Posts: 1,590 Joined: 6th September 2003 From: Gallifrey Member No.: 15,319 |
SIM free price to get locked into an 18 month contract?
Ha ha ha ha HA! I'd be looking for more 'contracts' like this to appear http://www.t-mobile.co.uk/Dispatcher?menui...nal_sim_only_pm where you get a SIM with a monthly bundle of any network/time minutes but no monthly contract. |
||
|
|
|
||
|
Aug 13 2006, 07:53
Post
#3
|
||
|
Editor Dude Group: Moderator Team Posts: 1,712 Joined: 23rd April 2003 From: Leicester, UK Member No.: 4,973 Device(s): SPV M700 / E650 |
ooo...liking that
-------------------- |
||
|
|
|
||
|
Aug 13 2006, 07:57
Post
#4
|
||
 Professional  Group: Posters Posts: 624 Joined: 1st January 2006 Member No.: 165,239 Device(s): Samsung i900 |
They finally realized that there is no reliable way to "lock in" the client.
Too easy to unlock 
|
||
|
|
|
||
|
Aug 13 2006, 08:05
Post
#5
|
||
 Peanut Brain Group: MoDaCo Plus Posts: 6,265 Joined: 10th September 2004 From: Surrey, England Member No.: 56,072 Device(s): Athena, Qtek 8500 |
Interesting to see how this pans out - what incentives will they give to get people to take out contracts? Most people only get new phones because they are free or very cheap. The phone market could stagnate with no one getting a new phone. I don't believe many people would pay SIM free prices for a phone - a few of us on here do but I think we are the exeption.
We shall have to see what happens! -------------------- He who asks a question looks foolish for 5 minutes. He who doesn't ask a question remains foolish forever.
|
||
|
|
|
||
|
Aug 13 2006, 08:06
Post
#6
|
||
|
Professional Group: Posters Posts: 624 Joined: 1st January 2006 Member No.: 165,239 Device(s): Samsung i900 |
They will have to live with less then 300% profits
Dunno how hard that will be The whole mobile market is a big bubble. It will burst, sooner or later. |
||
|
|
|
||
|
Aug 13 2006, 08:07
Post
#7
|
|||
|
Timelord Group: Posters Posts: 1,590 Joined: 6th September 2003 From: Gallifrey Member No.: 15,319 |
QUOTE(nedge2k @ Aug 13 2006, 08:53)  ooo...liking that I was going to get this with Web and Walk Pro added to use with my 3G data card. £17.50 a month for unlimited 3G modem access with no monthly contract! Since I am looking for a Hermes variant with unlimited data I have held off doing it for now, but I would imagine if contracts were non-subsidised you would see people starting to operate more like Virgin http://www.virginmobile.com/vm/simCardOnly.do Who would lock themselves into a contract with these sorts of offers available????? |
||
|
|
|
||
|
Aug 13 2006, 08:16
Post
#8
|
||
|
Addict Group: Posters Posts: 650 Joined: 11th July 2004 Member No.: 49,096 Device(s): QtekS100, E650, Touch Dual |
its been a long time coming but i think it will be the norm in a few years if not sooner...
I think the bigger retailers will be the ones most at risk and therefore will pick up the slack. Is there anything stopping CPW or Phones4U running an 0% interest credit agreement running alongside the contracts (which would have to be 20 quid a month cheaper)? The reason the contracts are averaging at £30+ for 18months is to pay for the handset. i cant see the industry being able to support the networks suddenly wanting the monthly charge AND the £300 all to themselves... If they stop paying the subsidy, part of the money train gets left behind. |
||
|
|
|
||
|
Aug 13 2006, 10:19
Post
#9
|
||
 Newbie  Group: Posters Posts: 37 Joined: 12th February 2006 From: Lincolnshire, UK Member No.: 172,386 Device(s): Orange SPV M600 w/WM6 |
I won't be tying myself into a contract, while paying the price of a SIM-Free phone.
I can certainly see the UK taking this approach. --------------------  |
||
|
|
|
||
|
Aug 13 2006, 11:26
Post
#10
|
||
 Abre Los Ojos Group: Posters Posts: 757 Joined: 14th February 2003 From: NewcastleGateshead Member No.: 2,830 Device(s): HTC TyTn II |
I would pay for a SIM free phone, and have a contract, but the monthly cost fo the contract would have to be significantly reduced to factor in that we are not paying for a £300 handset over 12 months.
-------------------- I will tell you in another life when we are both cats
|
||
|
|
|
||
|
Aug 13 2006, 11:48
Post
#11
|
|||
|
Addict Group: Posters Posts: 551 Joined: 21st July 2003 From: Nottingham Member No.: 10,516 Device(s): M3100 |
To all of this: not bloody likely!
I won't pay, I can't pay, so they can b****cks. Neither will 99% of the population. Simple. The UK does have it pretty easy when it comes to nice new handsets though, so how it will pan out in reality is another matter entirely. |
||
|
|
|
||
|
Aug 13 2006, 12:11
Post
#12
|
||
|
Regular  Group: Posters Posts: 63 Joined: 25th April 2006 Member No.: 186,955 Device(s): MDA Compact IV |
Doesn't surprise me at all... the economics of a mobile phone network just don't make sense.
I want the market to move to a unsubsidized handset and cheaper rolling contract scheme For example my current tariff is O2 Max which costs me £75 per month (or there abouts). £75 - (£400 / 12) = £45 per month Which sounds better to me as I will almost definitely buy my handset offline. The question is, especially with Windows Mobile devices, what happens to the customisation of the devices? I was working at OrangeNL when the fine was given out, the Dutch market is used as a testbed for ideas to be implemented in bigger more risky (revenue-wise) countries. So if this is a roaring success there, don't be surprised if the English, French and Germans are close behind. This post has been edited by loki_f: Aug 13 2006, 12:14 -------------------- Smartphone History
Orange SPX1 Prototype > Orange SPV E100 > Orange SPV E200 > Orange SPV C500 > iMate SP3i > O2 XDA Mini S > Qtek 8310 > Qtek 8500 > Samsung i600 > T-Mobile MDA Touch Plus > T-Mobile MDA Compact IV |
||
|
|
|
||
|
Aug 13 2006, 15:32
Post
#13
|
||
 I've always wanted to explore the Pacific rim Group: Posters Posts: 2,316 Joined: 19th January 2003 From: Lincoln Member No.: 2,100 Device(s): MWg Atom, i-mate Smartflip |
It is all about market forces. If some big operators start doing this then they will lose business elsewhere. There is very little brand loyalty associated with mobiles (than say, cars). If this is implemented, then vote with your feet and wallett and they will have to do something about it.
-------------------- "Success is not to be measured by the position someone has reached in life, but the obstacles he has overcome while trying to succeed."
Booker T. Washington |
||
|
|
|
||
|
Aug 13 2006, 17:36
Post
#14
|
|||
|
Regular Group: Posters Posts: 128 Joined: 2nd July 2003 Member No.: 9,300 Device(s): MDA Compact II |
I can see this happening - it strikes me that the economics just aren't there for mobile phone companies, especially ones that paid too much for 3G licences.
Sounds like very bad news for handset makers. Certainly less business, and without subsidisation they may have to drop prices a little themselves. Could also stifle development of features a lot. We all buy our own home phones, and I suspect I'm not the only person that's just got a cheapy with no features. This post has been edited by barrybryce: Aug 13 2006, 17:37 |
||
|
|
|
||
|
Aug 13 2006, 17:52
Post
#15
|
|||
|
Newbie Group: Posters Posts: 10 Joined: 9th April 2005 Member No.: 122,731 |
hmmm lets see dunno ,dont care i like sim free phones anyway + its a good exercise in kamikaze from both the network operaters and the handset manufactures ,on second thought it might be good for me my handset would probably last longer than at present ie more money stays in my pocket hehe
|
||
|
|
|
||
|
Aug 13 2006, 19:29
Post
#16
|
|||
|
Addict Group: MoDaCo Ad Free Posts: 739 Joined: 19th November 2003 From: London - UK Member No.: 21,445 Device(s): HTC TyTN II |
Is this not already the case in the US to a degree?
I remember the last time I was in the states their handsets were FAR behind anything we had in the UK (this was a few years back though). The market for new handsets being developed and released is driven massively by the (what used to be) yearly upgrade cycle. People will NOT shell out £300-500 (depending on handset/type) every year for a new phone. I think the market for new handsets will stagnate. People will try and eek out EVERY last minute of their units. Handset makers like SE and Nokia may slow the development/release of new models. The biggest problem is, that handsets tend to just get battered in a year...people use their mobile phones every day and many times a day. The amount of handling phones take just means they suffer a lot of use and abuse. I reckon 80-90% of the population either just cant afford/justify the cost of a new handset once a year OR they simply won't want to pay out of "principle" in their eyes. The good that will come of this is that the carriers will be able to offer MUCH more competitive tariffs. |
||
|
|
|
||
|
Aug 13 2006, 23:41
Post
#17
|
|||
|
Regular Group: Posters Posts: 128 Joined: 2nd July 2003 Member No.: 9,300 Device(s): MDA Compact II |
They obvioulsy also don't think there's going to be the need to get future new chargeable features into our pockets... which is probably the case, suppose there can't be much extra that people might use left to add into the typical users phone.
This post has been edited by barrybryce: Aug 13 2006, 23:42 |
||
|
|
|
||
|
Aug 14 2006, 00:48
Post
#18
|
||
 Regular Group: Posters Posts: 112 Joined: 16th July 2006 From: UK Member No.: 198,287 Device(s): Orange SPV M500 |
I think that I would like to see subsidies by the networks reduced ...it would be nice to see the upgrade market cool down a bit, as it might mean the end to this incessant 'drip feed' of technology by the manufacturers.
You know what I mean ... 6 or 7 different handsets released , all virtually identical to their predecessor except for one or two tiny details .... point two of a megapixel here, a little EDGE capability there, all to pursuade people to upgrade early, or get another contract with a 'free' 'phone just because they are a little bored with their current model. I would rather fork out a few quid for something that was markedly different every year and more advanced than what I had before, especially if some of the savings that the network made were translated into better value tariffs. |
||
|
|
|
||
|
Aug 14 2006, 01:03
Post
#19
|
|||
 Enthusiast  Group: Posters Posts: 196 Joined: 14th December 2004 Member No.: 102,005 |
I think that if phones weren't subsidized here in the US, the prices for handsets would ultimately come down and there would be more choice.
Then with costs lowered, the cell phone companies would be able to compete more aggressively for pricing minutes either in contracts or on pre-paid plans. This post has been edited by Socrates: Aug 14 2006, 01:04 |
||
|
|
|
||
|
Aug 14 2006, 06:35
Post
#20
|
||
 Addict Group: MoDaCo Ad Free Posts: 527 Joined: 26th January 2006 Member No.: 169,492 Device(s): HTC TyTN II |
Hmmm. Can't see it happening in the short term.
My XDA Mini S was £50, on a £20/month contract. At the time, there's not a chance I'd have got a Mini S or any other PDA for less than £400. Looking at the t-mobile sim-only offer above, that's £7.50/month without a handset, which implies that my handset is costing me ~£13/month. So I'm chuffed with the deal - particularly as when I come to upgrade next April I should be able to sell the XDA for upwards of £50 on eBay, thus reclaiming more of my costs. This means that the handset works out at about £100/year which - for the technology - is reasonable, IMO. |
||
|
|
|
||
|
Similar Topics
| Topic | Replies | Topic Starter | Views | Last Action | |
|---|---|---|---|---|---|
 |
Caver, G-Invaders and G-Alarm for the Omnia | 10 | ageye | 812 | Today, 15:37 Last post by: o0joe0o |
 |
The official Sony Ericsson Xperia X1 'Ask Paul' thread | 62 | Paul (MVP) | 2,466 | Today, 16:57 Last post by: fuzzmo |
|
how to recover data from storage after HARD RESET? is there any way to recover lost files after hard reset |
3 | pp56825 | 118 | Today, 17:42 Last post by: pp56825 |
|
 Need help, if someone could extract launcher.exe from DXHI3 for me |
4 | panateo | 102 | Today, 15:07 Last post by: o0joe0o |
|
Of all the black Omnia screens | 0 | Raul6 | 62 | Today, 14:36 Last post by: Raul6 |
|
Launch an app and switch to landscape from shortcut |
2 | daz306td | 32 | Today, 17:52 Last post by: everton2004 |
1 User(s) are reading this topic (1 Guests and 0 Anonymous Users)
0 Members: