Apple granted patent where carriers bid to provide service to iPhones

the8thark · Feb 9, 2011

Apple granted patent where carriers bid to provide service to iPhones
AppleInsider | Apple granted patent where carriers bid to provide service to iPhones

A patent recently granted to Apple could wrest power away from the wireless carriers by creating a mobile virtual network operator (MVNO) system that would allow networks to bid against each other over wireless services provided to iPhone users.

MYmacROX · Feb 9, 2011

Wow! Would carriers stop subsidizing iPhones if this goes into effect in the future? If they're not getting a guaranteed 2 year contract, what's in it for them to sell the iPhone @$200 instead of $600?

XJ-linux · Feb 10, 2011

MYmacROX said:
Wow! Would carriers stop subsidizing iPhones if this goes into effect in the future? If they're not getting a guaranteed 2 year contract, what's in it for them to sell the iPhone @$200 instead of $600?

Good old law of unintended consequences. I didn't think of that. Not sure I'd spend $600 on a phone, regardless of how "cool" it is.

NumberSix · Feb 10, 2011

XJ-linux said:
Not sure I'd spend $600 on a phone, regardless of how "cool" it is.

I've decided that my next phone would be an unlocked one (and I don't want to deal with jailbreaking anymore). If that means I have to pay $600 for it, so be it. But I for one am tired of being held 'hostage' by carriers

Of course, being in Canada, it's easier since Apple offers the unlocked phones right on their websites.

RadioSaigon · Feb 10, 2011

NumberSix said:
...I for one am tired of being held 'hostage' by carriers

Absolutely!!! I'm looking at buying my 1st iPhone in the very near future and share your sentiment! There is no way I'll be locked-into a 2-yr contract again. Here in AUS, I'll be buying the 32Gb model at a cost barely sub-AUD$1,000. It's a lot of money, but to me, not being bound to one service provider, not paying the phone off monthly via my phone-bill and not having to tolerate all the crap they load the phone up with makes it worth every cent.

XJ-linux · Feb 10, 2011

I agree. I don't wish to be locked in to a contract, and I don't value any gadget enough to spend $600. I'll stick to slightly older used hardware for now, until "smart" phones drop in price like laptops eventually did.

the8thark · Feb 10, 2011

XJ-linux said:
Good old law of unintended consequences. I didn't think of that. Not sure I'd spend $600 on a phone, regardless of how "cool" it is.

You are paying $600 now though. Just not all upfront. A lot of the cost is paid for month by month with the phone carrier plans. $600 upfront for a phone is a lot though.

XJ-linux · Feb 10, 2011

the8thark said:
You are paying $600 now though. Just not all upfront. A lot of the cost is paid for month by month with the phone carrier plans. $600 upfront for a phone is a lot though.

So, the plans cost less per month on the same carrier if you pay $600 up front? I did not know that.

the8thark · Feb 10, 2011

XJ-linux said:
So, the plans cost less per month on the same carrier if you pay $600 up front? I did not know that.

Yes in Australia that is the case. Can't speak for other countries though.

NumberSix · Feb 11, 2011

the8thark said:
Yes in Australia that is the case. Can't speak for other countries though.

Not the case in Canada. Plans are the same with or without contracts, with or without a subsidized phone. I guess That's the reason that plans are more expensive than the rest of the world (though i think it's on par with the US)

XJ-linux · Feb 11, 2011

Yeah (unless I'm missing something) here in the US the cost is the same per month regardless of whether you buy the handset outright or get a subsidized handset. An unlocked handset just allows you to go month to month or use another carrier (T-Mobile) at 2G speeds. There may be other benefits.

Regardless, you are paying more by buying the handset upfront in the US. The cellular company's benefit is that you are locked into their contract for two years to make up their subsidized cost loss. On the same rate plan, if you buy the $600 phone upfront, you have theoretically paid for it twice if the rate plan already allows for the phone cost to be recovered by the cellular company in two years.

the8thark · Feb 11, 2011

XJ-linux said:
On the same rate plan, if you buy the $600 phone upfront, you have theoretically paid for it twice if the rate plan already allows for the phone cost to be recovered by the cellular company in two years.

I see your point. Here in Australia if you buy the phone upfront, then you have a slightly cheaper plan then if you take the subsidised plan. Yes on most carriers here they tell you how much of the plan per month is paying off the phone. And you don't pay extra this if you purchased it upfront. Because if you did then you'd be paying for the phone twice.

james515 · Feb 11, 2011

if the carriers actually go for something like this, then it would put an end to subsidized iPhones. My guess is the carriers will not go for this as customers could freely move between carriers at will, and the carriers DONT want that to happen, in the US that is.
For the US carriers, its more about the total # of customers they have

for the customer, it will create a billing nightmare and loads of extra charges... then once you buy your $400 to $600 phone, you will want to buy a new one in a year when the new model comes out