The main problem here is consumers don't want to pay $400 when they can pay $200. If they're going to stick with their carrier for the long haul the 2 yr contract isn't really a problem. It comes down to upfront cost and the carrier will always win at that game.
I thought the problem (in the US) was that At&T or Verizon don't want this model to work, and don't make the plans attractive, so you end up paying more for the phone and still end up paying the same overburdened service cost.
Also, that available primarily online only phones don't sell nearly as well as hands on, in person sales.
This strategy seemed to have not worked so well earlier. I guess seeing how subsequent Nexus devices going through the carriers have been mangled, lack upgrades, etc -- leads them to think they just have to do it anyway, and try for the long game.
AT&T is probably going to be pushed to do so by the continued existence of T-Mobile. We're lucky that deal didn't get through, or you can be sure you wouldn't be able to have SIM-only plans.
My guess is Verizon will block this point-blank, and refuse to activate the phones. It'll take a change in the legal landscape to compel them to do so. They already have Android phones coming out of their ears, plus the iPhone, so they have no need to play nice with Google, particularly if Google isn't willing to use Motorola to play hardball.
Comments
The main problem here is consumers don't want to pay $400 when they can pay $200. If they're going to stick with their carrier for the long haul the 2 yr contract isn't really a problem. It comes down to upfront cost and the carrier will always win at that game.
I thought the problem (in the US) was that At&T or Verizon don't want this model to work, and don't make the plans attractive, so you end up paying more for the phone and still end up paying the same overburdened service cost.
Also, that available primarily online only phones don't sell nearly as well as hands on, in person sales.
This strategy seemed to have not worked so well earlier. I guess seeing how subsequent Nexus devices going through the carriers have been mangled, lack upgrades, etc -- leads them to think they just have to do it anyway, and try for the long game.
AT&T is probably going to be pushed to do so by the continued existence of T-Mobile. We're lucky that deal didn't get through, or you can be sure you wouldn't be able to have SIM-only plans.
My guess is Verizon will block this point-blank, and refuse to activate the phones. It'll take a change in the legal landscape to compel them to do so. They already have Android phones coming out of their ears, plus the iPhone, so they have no need to play nice with Google, particularly if Google isn't willing to use Motorola to play hardball.
Wouldn't the open-access conditions of the 700 MHz band force Verizon to play along - at least to the point of activating phones purchased elsewhere?
Or to put it another way, if they've really stopped playing nice, wouldn't Google end up making that argument?