SMS wrote:
> tom glaab wrote:
>> SMS wrote:
>>> I wonder how long until the carriers close this loophole. The prepaid
>>> phones are generally sold below cost, with the idea that the airtime
>>> costs will make up for it.
>>
>> Loophole? If you buy the prepaid and use up whatever prepaid minutes
>> come with it, Cingular doesn't make a penny more than if you use it as
>> a cheap replacement for your (broken) subsidized phone.
>
> Yes, that's the problem. They don't get to sell you a non-subsidized
> replacement phone at a high price, and they don't get you to sign a
> contract extension for a subsidized phone. You're buying a subsidized
> phone with the expectation that the subsidy will be made up with the
> purchase of airtime.


The actual cost of the phones must be very low. They maybe sold at cost,
rather than below cost. And instead of telling them to close the
loophole, why don't you tell them they should sell people a replacement
phone at a reasonable price? So maybe this is an unspoken intended
purposes to encourage people to start using GoPhone and then switch to a
postpaid plan.