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[MSN] Phone companies lose $400 for each iPhone sold - Page 9

post #81 of 89
Quote:
Originally Posted by kwint View Post

I am a customer service rep for a major US carrier. I take around 70 calls per day.
All carriers take a loss when starting a customer on a new line of service. There is a cost for the phone number, a cost to create the line, and the carrier eats the difference in the upgrade/new service price. The contract and early termination fee is in place to prevent the carrier from taking an even bigger loss. The reasoning behind offering the lower price for a contract is to be able to be affordable for all levels of income. Also, you can purchase a phone at full retail and not be attached to a contract in most cases.
The amount you pay per month goes towards various items. For anything data transport related be it making a call or surfing the web, there is a cost associated with it and more than likely an applicable tax. The taxes and surcharges that are appear on your bill supplement these costs but do not cover them all. Any carrier also has the costs of employee wages, advertising, equipment, cell site construction, and commissions as well as other costs I'm probably forgetting.

I don't know where you took that but I really really doubt it is that expensive to get new clients. The real cost is to partly pay the phone but they get their money back since you are under contract so they win no matter what.
Beside the investment to build cell towers and upgrade the services (ie: latest data speed) it is free money. There is a cost to add a phone number? Lol... I can change phone number any time I want and it costs zero, nada. It's as simple as adding a number and associate it to the SIM card number. Very expensive and hard to do indeed.
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post #82 of 89
Phone numbers are consider property by each carrier.
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post #83 of 89
*Note to self*

Do not live in America where they overcharge you for phone contracts. thumb.gif
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post #84 of 89

 

Quote:
Originally Posted by tedman View Post

*Note to self*
Do not live in America where they overcharge you for phone contracts. thumb.gif

 

And internet service too.
 

Quote:
Originally Posted by Shozzking View Post


Apple is unique in the fact that it can demand any amount it wants to for its products. Every carrier must carry the iphone otherwise they will lose out on a huge chunk of the market. Android phones are unable to demand high prices because the carrier can get a nearly identical unit from another manufacturer. I work at Best Buy and I know that we barely break even on most of the macs and ipads.

 

Yeah, I used to work at BB and out of all the products they sold, they definitely pushed us to sell Black Tie on Apple most of all. Which makes sense I guess, since a $200 protection plan is what...$150 of profit?
 

 

post #85 of 89
Quote:
Originally Posted by Oedipus View Post

...and then they recoup those costs with deliciously overpriced cellular plans.
Gotta love their math. They act like they're simply giving you a $600 phone for $200 and then let you walk out the door.

THis exactly. If anyone thinks they're giving us money should be checked. If they didn't make money off the Iphone it wouldn't be available. Easy as that.
 
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post #86 of 89
Quote:
Originally Posted by kwint View Post

I am a customer service rep for a major US carrier. I take around 70 calls per day.
All carriers take a loss when starting a customer on a new line of service. There is a cost for the phone number, a cost to create the line, and the carrier eats the difference in the upgrade/new service price. The contract and early termination fee is in place to prevent the carrier from taking an even bigger loss. The reasoning behind offering the lower price for a contract is to be able to be affordable for all levels of income. Also, you can purchase a phone at full retail and not be attached to a contract in most cases.
The amount you pay per month goes towards various items. For anything data transport related be it making a call or surfing the web, there is a cost associated with it and more than likely an applicable tax. The taxes and surcharges that are appear on your bill supplement these costs but do not cover them all. Any carrier also has the costs of employee wages, advertising, equipment, cell site construction, and commissions as well as other costs I'm probably forgetting.

There is no cost for the phone number... not sure where you are pulling that information out of, but I bet it smells a little...
Cost to create the line... what exactly do you mean by this? What do you create? What do you use that costs money to do so?
And if you are saying the carrier eats the cost of subsidizing the phone for new customers and eligible upgrades... THAT is why they have contacts, and why your cell phone bill is as expensive as it is.
Taxes do no supplement the costs of anything... that is the government's piece of the pie. And surcharges usually go to other agencies besides the phone company... such as E911 surcharge... that helps pay the bills for the 911 call centers in your area.
Commissons=wages... no need to double dip that...

good try though.

Quote:
Originally Posted by Just a nickname View Post

I don't know where you took that but I really really doubt it is that expensive to get new clients. The real cost is to partly pay the phone but they get their money back since you are under contract so they win no matter what.
Beside the investment to build cell towers and upgrade the services (ie: latest data speed) it is free money. There is a cost to add a phone number? Lol... I can change phone number any time I want and it costs zero, nada. It's as simple as adding a number and associate it to the SIM card number. Very expensive and hard to do indeed.

I laughed with you...
Quote:
Originally Posted by kwint View Post

Phone numbers are consider property by each carrier.

yes and no... the phone numbers belong to the FCC, as they decide what exchanges are available for each carrier. They assign numbers to those carriers... and now with Local Number Portability, you can take that phone number with you because it is yours in the sense that you are leasing it... and when you end your service entirely it will finally revert back to the original carrier it was assigned to.
    
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post #87 of 89
Quote:
There is no cost for the phone number... not sure where you are pulling that information out of, but I bet it smells a little...
Cost to create the line... what exactly do you mean by this? What do you create? What do you use that costs money to do so?
And if you are saying the carrier eats the cost of subsidizing the phone for new customers and eligible upgrades... THAT is why they have contacts, and why your cell phone bill is as expensive as it is.
Taxes do no supplement the costs of anything... that is the government's piece of the pie. And surcharges usually go to other agencies besides the phone company... such as E911 surcharge... that helps pay the bills for the 911 call centers in your area.
Commissons=wages... no need to double dip that...

Well, won't name names, but the carrier I work for starts with a V and they're latest phone deals with something sharp. I only know what they've told me, and I'm relaying the information as a fellow consumer apposed to an apologist.

The phone lines are not there before you activate them, there are costs behind activating your line which is partially supplemented by the activation fee. When I say build the phone line, i mean find an identifying number for the switch for your phone number to route to so the switch can keep track of your usage and it can report it back to the billing system. These are questions I asked my supervisor and verified with my supervisor's supervisor. Believe what you wish honestly. The definitions of the surcharges that I gave you are directly out of what I read to customers at work when they're questioning what the charges are for.

The contract is in place to recoup costs of the subsidized phone over the course of the contract. Yes hard to believe, but majority of that monthly bill you pay goes into what I listed. In call centers alone, the carrier I work for has 60,000 employees. If an employee averages out 1600 a month, how many of your phone plan would you need to cover that? Keep in mind that customer service call center alone. That does not include, technical support, financial services (who receive commissions for receiving payment on an account that is in collections), and disconnect departments. Don't forget about the spanish speaking departments either.

I'm not too familiar with GSM networks, since the carrier I work for is CDMA so the things may vary based on your carrier. BUt I did hear from a customer that a certain carrier was charging 70 bucks to port your number in. At anyrate, I'm on the same side as most who believe that cell phone companies get away with murder with their pricing, but I doubt the consumer will ever have the power to fighter against corporate monsters such as cell phone carriers. If there were a movement like the sopa/pipa protesting for cell phone companies to lower prices, I'd sign my name on the petition. thumb.gif
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post #88 of 89
Sensationalist article. There is no way any phone company is paying $600 for an Iphone. It's like half that and the customer pays $200 of it.
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post #89 of 89
Quote:
Originally Posted by kwint View Post

Quote:
There is no cost for the phone number... not sure where you are pulling that information out of, but I bet it smells a little...
Cost to create the line... what exactly do you mean by this? What do you create? What do you use that costs money to do so?
And if you are saying the carrier eats the cost of subsidizing the phone for new customers and eligible upgrades... THAT is why they have contacts, and why your cell phone bill is as expensive as it is.
Taxes do no supplement the costs of anything... that is the government's piece of the pie. And surcharges usually go to other agencies besides the phone company... such as E911 surcharge... that helps pay the bills for the 911 call centers in your area.
Commissons=wages... no need to double dip that...
Well, won't name names, but the carrier I work for starts with a V and they're latest phone deals with something sharp. I only know what they've told me, and I'm relaying the information as a fellow consumer apposed to an apologist.
The phone lines are not there before you activate them, there are costs behind activating your line which is partially supplemented by the activation fee. When I say build the phone line, i mean find an identifying number for the switch for your phone number to route to so the switch can keep track of your usage and it can report it back to the billing system. These are questions I asked my supervisor and verified with my supervisor's supervisor. Believe what you wish honestly. The definitions of the surcharges that I gave you are directly out of what I read to customers at work when they're questioning what the charges are for.
The contract is in place to recoup costs of the subsidized phone over the course of the contract. Yes hard to believe, but majority of that monthly bill you pay goes into what I listed. In call centers alone, the carrier I work for has 60,000 employees. If an employee averages out 1600 a month, how many of your phone plan would you need to cover that? Keep in mind that customer service call center alone. That does not include, technical support, financial services (who receive commissions for receiving payment on an account that is in collections), and disconnect departments. Don't forget about the spanish speaking departments either.
I'm not too familiar with GSM networks, since the carrier I work for is CDMA so the things may vary based on your carrier. BUt I did hear from a customer that a certain carrier was charging 70 bucks to port your number in. At anyrate, I'm on the same side as most who believe that cell phone companies get away with murder with their pricing, but I doubt the consumer will ever have the power to fighter against corporate monsters such as cell phone carriers. If there were a movement like the sopa/pipa protesting for cell phone companies to lower prices, I'd sign my name on the petition. thumb.gif

Worked for Verizon for years...and you are full of it. no further arguments.
    
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