←back to thread

T-Mobile, AT&T oppose unlocking rule, claim locked phones are good for users

(arstechnica.com)
197 points LorenDB | 4 comments | 21 Oct 24 20:31 UTC | HN request time: 0.659s | source
Show context
tptacek ◴[21 Oct 24 21:11 UTC] No.41908565[source]▶
This is a good way for Ars to generate clicks and a more honest headline probably wouldn't move the needle much, but it's worth being clear for HN that the objection here is not that locked phones are good for consumers, but that the subsidization deals locked phones enable are.
replies(11): >>41908581 #>>41908673 #>>41908679 #>>41908875 #>>41908906 #>>41909375 #>>41909380 #>>41909447 #>>41909558 #>>41911205 #>>41911215 #
nothercastle ◴[21 Oct 24 21:27 UTC] No.41908679[source]▶
They aren’t though. Subsidized phones are like monthly car payments drive up costs and are targeted at people bad at math.

If consumers paid out of pocket for their phones then they would be more picky about upgrading and plan prices. It would also make upselling shitty plan features harder so the carriers would loose a lot of money.

replies(7): >>41908735 #>>41908766 #>>41908828 #>>41909010 #>>41909194 #>>41909329 #>>41909562 #
1. christophilus ◴[21 Oct 24 21:32 UTC] No.41908735[source]▶
Monthly car payments can be good, though, as opposed to paying cash, assuming you can get a reasonable rate of return by conservatively investing the cash in a fairly liquid investment.
replies(3): >>41908890 #>>41908934 #>>41909359 #
2. johnnyanmac ◴[21 Oct 24 21:51 UTC] No.41908890[source]▶
They type of people they target don't even have money saved for an emergency. Let alone money to invest.
3. ryandrake ◴[21 Oct 24 21:55 UTC] No.41908934[source]▶
Current (risk free) 5 year TIPS real yield is 1.65%... Not sure if there are many car loans offered at a lower rate. If you were thinking a different investment, you'd of course need to adjust it for risk, inflation, and liquidity before comparing to the car loan.
4. i80and ◴[21 Oct 24 22:46 UTC] No.41909359[source]▶
There are economic environments where this is true, but I think they tend to be the exception, not the rule. Car loan rates right now are quite steep.