Why do they have contracts? Really, we don't need to sign a contract with our land line carrier and can switch our long distance carrier if we are looking for better rates or are not satisfied. To me it's just a way these wireless carriers are making more money. And of course we still get billed those extra charges, fcc, taxes, etc...
Because the cost of wireless phones is highly subsidized by the carriers. They recoup this by having subscribers commit to a term that will allow the carriers to make some profit. Try comparing the cost of even the cheapest wireless (cell) phone with the cost of an average cordless phone and then realize that wireless phones are much more powerful. Those new to wireless service do not remember the days when wireless phones costs over a thousand (US) dollars and every minute was charged. Newbies also don't realize the billions of dollars that carriers invest in infrustructure to make the phones work. So quite contrary to newbies perception, carriers are not raking in money by the handfuls and getting fat from profit. My Website
The purpose for the contract is..................... 1. We take a hit when we give you a phone for free 2. Verizon does not make a profit off a customer till a year down the road. (unless you go over your min.) 3. Once you get used to a phone #........you usually do not want to give it up, there for stay with the company. 4. If no contract......providers would lose big $ if you canceled your serive the next day and kep the $200 phone. 5. Contracts will be around for a long time.......................just get used to it. You do not have to do a contract.....................if you buy the phone outright...............then you do not have to sign an agreement. Be prepared to spend over $200 though for a phone.............they are not cheap
Weird.............Master Kevin posted right when I did...............maybee I am becoming a Jedi W.A.!!!!!!!!!!!!!
Sprint didn't require any contracts for about the first 3 years in business. I'm still on one of these no contract plans myself with the first incoming min. free. They still have no contract plans today but they cost an additional $10/month.
Well Sprint doesn't give away any free phones but they do often have $100 rebates for new customers. So you pay outright for the phone but can qualify for a mail in rebate. For examole, my friend just purchased a Sprint Kyocera 2255 at Circuit City for the retail price of $130 but ended up getting the $100 mail in rebate from Sprint as well as a $75 mail in rebate from Circuit City. So the phone will actually turn out to be free and then some once the rebates come in.
That is soo freaking cool................Excellent price on the 2255, that phone looks great...........we have the 2235.same phone but Verizonized. Here.............if they do not want a contract...........out right price on the phone and no rebate.
Also when at&t wireless fisrt came into my area they did not require a contract. Now they do. Sprints extra $$ per month for no contract is nice Cingular also just got into the no contract option but pay $100 more for a phone Jack
I remeber back then when the bag phone was $2000.00 dollars , back when high rollers was not only one's with cellular phones, also Cingular have no commitment plan ( 2 reason - Bring your own phone, or pushase the phone for the retail price.