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197 points LorenDB | 2 comments | | HN request time: 0.403s | source
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idle_zealot ◴[] No.41908752[source]
Locking phones is not at all a requirement for carriers to offer subsidized deals. They could offer phones on installment plans conditional on an N-month contract. The buyer could switch carriers and keep the phone, but be on the hook to pay off the rest of the contract term. The only reason to use technological locks is to further trap a customer into a carrier relationship beyond the legal terms of their contract. It's yet another example of companies violating long-standing rights and norms and getting away with it because there's a computer involved.
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cwyers ◴[] No.41908805[source]
The counterpoint is that by locking people into carrier relationships allows T-Mobile and AT&T to offer loans on consumer electronics at much more consumer-friendly rates than others in the same business, e.g. Rent-A-Center. As I note downthread, `The total cost to buy a PS5 Slim is $500, the total cost to get a PS5 Slim through my nearest Rent-A-Center is $1,349.50.` You could introduce this pricing for iPhones for poor people too! This might even incentivize more people to use low-end Android hardware! But let's not act like this is 100% a good thing for everybody.
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happymellon ◴[] No.41908838[source]
> The counterpoint is that by locking people into carrier relationships allows T-Mobile and AT&T to offer loans on consumer electronics at much more consumer-friendly rates than others in the same business

How does it do that? Its a lock to force people to stick with a provider, and pay through the nose in other ways. Phone plan rates in the US are terrible, restricting peoples ability to change provider through artificial means doesn't provide better rates.

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1. labcomputer ◴[] No.41909247[source]
Because it greatly lowers the risk that AT&T will need to write off the debt for your phone and sell it to a collections agency for pennies on the dollar.

It’s the same difference as a home mortgage vs unsecured credit card debt: When the threat exists that the lender can repossess your home if you don’t pay… they don’t have to worry as much about you not paying your mortgage, so they can offer a much lower rate.

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2. itopaloglu83 ◴[] No.41909364[source]
Maybe then they should put a lien on it and call it the phone title, not lock status.