7 replies to this topic

[nash1977]

This is just a thought...but it would explain why Amazon (which has tremendous buying power) is charging a high price for the sim free version instead of a lower price.

In the UK, networks are not obliged to provide unlocking, and I suspect Orange will not be selling their database of unlock codes to mobile unlocking companies when the OMC is first released. Therefore, making unlocking difficult.

Vodafone has used this technique with BlackBerrys.

Networks can even superglue sims to handsets. Ofcom allowed 3 to sell the ZTE F866 and other cheap handsets in this way. Though I can't see Orange adopting this method LOL!

Edited by nash1977, 08 August 2011 - 07:41 PM.

[sej7278]

i wonder how much they will be here in france, where orange is the national phone network and its illegal to simlock a phone.

[flibblesan]

If it's anything like the San Francisco it'll be very easy to unlock without needing any database.

[Ralph Martin]

Something tells me that if ZTE are getting into the market with their own-branded handsets, and if they expect to sell them unlocked at much higher prices than operator locked ones, they have a great incentive NOT to make it too easy to unlock the Skate and Libra when on sale here. Otherwise, why would anyone buy a ZTE branded one when they can just easily buy an Orange one and unlock it? I hope I am wrong, but,...

[everett_psycho]

I'd think zte will make money on both versions,it's orange that will be taking the hit through their subsidy for people to be unlocking them

[Tooslow]

everett_psycho, on 02 August 2011 - 09:20 PM, said:

I'd think zte will make money on both versions,it's orange that will be taking the hit through their subsidy for people to be unlocking them

It is going to be interesting to see the pricing because I think that the great "subsidy" myth is just that,a myth.

Do the arithmetic. Go look for a phone, any phone, locked to a network. Find the best price you can from a reputable source (and Tesco have some good deals that tend not to show up on search engines). Now add in 12 / 18 / 24 months (you choose) sim only. Add it all up and compare it to the same phone + sim deal. I bet buying the phone outright works out cheaper.

I also think that ZTE, a brand that most people have never heard of, will have a VERY tough time establishing themselves at that sort of price. But good luck to them.

Edited by Tooslow, 04 August 2011 - 08:04 AM.

[Ralph Martin]

Tooslow, on 04 August 2011 - 07:58 AM, said:

It is going to be interesting to see the pricing because I think that the great "subsidy" myth is just that,a myth.

I think you are misuderstanding what the subsidy is all about. Locked phones are sold cheaper than sim free (not locked) ones.  The networks sell PAYG phones at a reduced price upfront (a subsidy), in the expectation to get that and more back when you use it on their network. That's why they simlock them, to stop you buying it and then running off to some other network, preventing them getting their subsidy back + profit.  Networks use this subsidy tactic as the initial cost of ownership is lower, sucking more people into buying an expensive phone.

The point of this thread was to show that this subsidy is of the order £80-£100 (locked San Francisco versus not locked Libra).

As we know, the Blade can easily be unlocked for free. That's why I was doubting if the ZTE Libra (~the same) will sell, unless at the same time newer San Franciscos come out which cannot be unlocked. Ditto for the new Skate / Monte Carlo.

Different operators have different business models about how much to subsidise. You can win if you buy your phone from one that offers a big subsidy + high network rates (Orange say), unlock it, move to an operator with lower subsidy + lower network rates (Three). Three were selling the inferior ZTE Racer for the same price as Orange were selling the Blade (i.e. lower subsidy), and also have lower data charges (I just pay £5 per month and make all my calls over SIP).

Edited by Ralph Martin, 04 August 2011 - 08:22 AM.

[everett_psycho]

ralph was spot on with what i meant, I personally agree with tooslow that in terms of subsidy a contract really doesn't work out much cheaper than sim free + sim only deals most of the time.  But the subsidy on locked phones can be crazy, I was looking at a SE xperia arc and it was £400 sim free or tesco and o2 were chucking it out at £330 locked to them, same as the OMC will be subsidized by orange and be a wedge of cash cheaper than the skate sim free, it makes no difference to ZTE they still sell the skate but it's orange that are hoping to recoup their loss on the phone by making you use their network, luckily for us it sounds as if it's ZTE that deem if it's easy to unlock or not not orange who are taking the cash hit