Dan Hesse on Handset Subsidy
Dan Hesse, CEO of Sprint and Charlie Rose with Hesse explaining the role that carrier subsidy plays in paying for a handset. Notable quote showing that the payments for the device are included in the initial two years of the plan's monthly rate: "makes it up over 24 easy payments of..." This is a good interview with simple high-level explanations of a number of different parts of cellular service. Please see the entire interview here: http://charlierose.http.internapcdn.net/charlierose/091009hesse.wmv
You are ONE of the big majority of carriers arround the world which subsidized phones. There just a few countries that ban bundling plans and handsets (Finland).
So you are NOT alone at all.
ppdf2001 7 months ago
Absolutely Correct there Mr. Hesse! We are the ONLY country in the world that subsidize handset purchases in exchange for a contract. These handsets are VERY expensive and in some cases carriers would lose money if they sold handsets even at the "full" price (just check out online pricing of unlocked handsets for a reality check of their TRUE cost). Anywhere else in the world you would pay $600-800 USD with no carrier subsidy then buy your plan apart from your device.
MadFatMan74 10 months ago