Linked by robojerk on Thu 30th Dec 2010 00:09 UTC
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Member since:
2005-07-06
Well, the way I see it, we are primarily paying off the cost of the actual phone when you cancel the contract and may be a little bit extra for the actual contract and processing fees etc. Either way, I have never been on a phone contract and have no intention to get into one either. I always buy my phones outright. Nearly everyone complains *after* they sign up.
The amount they charge effectively you're better off getting a personal loan through a finance company on an interest free or low interest deal, purchasing it out right then playing the carriers off against each other. In the case of NZ where I live if I had an iPhone I can use it on XT Network, 2 Degrees or Vodafone - and now there is number portability it makes life even easier. The 'leave fee' covers the subsidy but if one is simply purchasing a phone on contract simply to get the cheaper 'up front cost' but you really don't need a contract that extensive then you're no better off given you're going to under utilise the contract you've signed up for.
Edited 2010-12-30 06:24 UTC